As we approach the end of 2024, the property market in Portugal presents challenges and opportunities for vacation rental owners nationwide. Based on JLL's market report, this summary offers a global view of the latest trends, focusing on renting, tourism, and investment in various regions of Portugal.
Why Should You Care?
If you own a vacation rental, changes in the real estate market and tourism directly impact its profitability. With the increase in international demand and rising rents in several cities, there are great opportunities to maximize the return on your property, whether in Porto, Lisbon, or other regions.
Trends in the Real Estate Market in 2024
Increase in Incomes and Shortage of Supply
According to the JLL report, housing rents in several regions of Portugal increased by an average of 8%, driven by high demand and limited supply. This trend in cities like Lisbon, Porto, and Algarve allows vacation rental owners to adjust daily rates, increasing revenue from short-term stays.
Tourism on the Rise – Or Not?
Although the number of international passengers increased to some extent in 2023, not all regions experienced a consistent recovery. In fact, as we have shared with you before, there are signs of a slowdown in tourism in some areas. This should lead vacation rental owners to rethink strategies to face a possible slowdown in tourist demand in certain regions.
However, despite some uncertainty, opportunities remain, especially in key cities such as Lisbon, Porto, and Algarve, where tourism remains relatively stable. The key will be adjusting expectations and adapting strategies to maximize occupancy in the months ahead.
Opportunities for Vacation Rental Owners
Increased Profitability in Various Regions
The growing tourist demand in Portugal keeps the vacation rental occupancy rate high. Whether you have a property in Porto, Lisbon, or the Algarve, forecasts for growth in daily averages for 2024 remain favorable, which could be an excellent opportunity to adjust rates and maximize revenue.
Sustainability and Added Value
Sustainability is becoming a priority for both investors and tourists. Owners who invest in eco-friendly improvements to their properties (like solar panels or efficient insulation) can differentiate themselves in the market and attract environmentally conscious guests while reducing operating costs. At Host Wise, we support these initiatives and help implement sustainability strategies.
Relevant Data and Perspectives for 2024
Foreign Investment in Portugal
Around 70% of real estate investment in 2023 was of international origin, which demonstrates that Portugal continues to be an attractive destination for foreign investors. Cities such as Lisbon, Porto, and Algarve continue to be preferred destinations for investment and tourism.
Growth in Occupation and Revenue
With the increase in international tourism, the number of guests in Portugal increased by 13% compared to 2022, with overnight stays reaching 73.1 million. These data indicate a growing demand for vacation rentals in several regions, reinforcing the need to adjust pricing strategies and maximize occupancy during 2024.
The Future
Here at Host Wise, we know that adapting to market conditions is essential to ensuring the continued success of your property. In addition to following market trends, we consistently monitor the future. With the opportunities and challenges that 2025 will bring us, we are already preparing strategies to:
- Optimize occupancy and rates based on peak demand and special events nationwide.
- Customize management plans according to each property's location and unique characteristics, maximizing its potential.
- Help prepare your property for the competition by highlighting its advantages, such as location, sustainability, or amenities.
We are ready to face the changes the Portuguese real estate market will bring and continue providing our clients with the best service.
