Investing in the purchase of a home to put it on the rental market had a gross return of 6.9% in the summer of 2025, a decrease of 0.3 percentage points (p.p.) compared to the same period in 2024 (7.2%) and 0.5 p.p. compared to the third quarter of 2023 (7.4%), according to data from idealista.

This means that the business risk is lower now than in the last two years. Even so, the return on housing investment remains 0.4 p.p. higher than in 2020 (6.5%).

This gross return is the return on housing investment before deducting taxes, fees, and other costs. It's worth noting that the prices of homes for sale have been rising much faster than rents (7.6% and 4.1%, respectively, in September 2025), according to the idealista price index. On the other hand, it's important to know that the lower the profitability, the lower the business risk (and vice versa).

In the analysis by district capital (or autonomous region), Castelo Branco stands out as the most attractive market for investing in housing, with a gross profitability of 9%. However, it should be noted that this city poses greater risks for the business. For example, it may be more difficult to rent the house, or the property may appreciate in value in the future.

The list of most profitable cities for investing in a house and then putting it on the rental market continues with Bragança (8%), Santarém (7.1%), Coimbra (6.7%), Leiria (6.5%), Viseu (5.9%), Évora (5.8%), Porto (5.7%), Braga (5.6%), Viana do Castelo (5.5%), Aveiro (5.3%), and Setúbal (5.3%).

The least profitable markets are Lisbon (4.6%) and Funchal (4.8%). On the other hand, in these cities, investment risks are lower, with a higher likelihood of renting out the home and increasing property value.

Idealista's analysis also assessed the profitability of other real estate segments nationwide. Offices have a profitability of 8%, retail stores 8.1%, and garages 5.2%.