Authored by the expert who managed and guided the team behind the Portugal Property Pack
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Why is the Alentejo region emerging as a prime destination for property investment in 2025? Is it the serene landscapes, the burgeoning wine tourism, or the affordability compared to other European markets? What are the key advantages for investors?
We get asked these questions all the time because we’re on the ground, working closely with local developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in the Alentejo's real estate market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
1) With more visitors for festivals and events, you can easily rent out your property short-term in the region
The region's festivals and events are drawing more visitors, enhancing short-term rental opportunities.
In Alentejo, the bed occupancy net rate saw a boost in 2023, rising by 1.2 percentage points, which means more people are visiting. This uptick is a clear sign that the local events are pulling in crowds, making it a great time for property owners to consider short-term rentals.
Across Portugal, the number of short-term rental listings has been on the rise. From January 2021 to January 2024, listings jumped from 83,892 to 107,253. This significant increase in listings shows that property owners are keen to take advantage of the growing number of visitors, especially during event seasons.
Alentejo's occupancy rates hit their peak in the summer. For instance, in August 2021, the rate was 69%, but by August 2023, it climbed to 77%. This notable increase during summer months highlights how festivals and events are driving up demand for short-term rentals.
For those considering buying property in the area, these trends suggest a promising opportunity. With more visitors flocking to the region for its vibrant events, short-term rental prospects are looking bright.
Investing in a property here could mean tapping into a lucrative market, especially during peak event seasons. The consistent growth in rental listings is a testament to the potential returns for property owners.
Sources: PriceLabs, Enso Connect, Statista
2) Alentejo’s landscape is ideal for outdoor adventures, attracting more adventure tourists
Alentejo is a dream for outdoor enthusiasts, drawing more adventure tourists each year.
The region is buzzing with new adventure tourism operators, offering everything from horseback riding to 4x4 tours and hot air ballooning. This boom in activities shows that Alentejo is becoming a hotspot for thrill-seekers.
Natural attractions like the Southwest Alentejo and Vicentine Coast Natural Park are pulling in more visitors. The Rota Vicentina, with its 750 kilometers of scenic walking trails, is a favorite among hikers, while the Evora Nature trails offer diverse paths for trekking and biking.
Infrastructure is keeping pace with demand, with more bike rentals and guided tours popping up, making it easier to explore the region's stunning landscapes. Alentejo's reputation as a top adventure destination is growing, thanks to positive media coverage.
Whether you're a seasoned adventurer or a curious newbie, Alentejo's expanding options make it a must-visit. The region's natural beauty and variety of activities are perfect for anyone looking to escape the ordinary.
With its unique blend of landscapes and activities, Alentejo is carving out a niche in the adventure tourism market, attracting visitors from all over the world.
Sources: OECD, Mercan, Visit Evora
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Portugal versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) Alentejo’s dark skies make it a top spot for astronomy lovers
Alentejo's dark skies are a stargazer's paradise, drawing astronomy enthusiasts from all over.
At the heart of this celestial attraction is the Alqueva Dark Sky Reserve, a vast area of about 10,000 square kilometers with minimal light pollution, making it perfect for night sky exploration. This internationally certified reserve offers some of the best stargazing opportunities, where the stars shine brighter and clearer than almost anywhere else.
Tourism in the region is booming, with businesses like Naturetrek Tour offering unique experiences that blend birding and astronomy. Visitors can enjoy nights in the Alqueva Dark Sky Reserve and visit local observatories, creating memorable stargazing adventures. São Lourenço do Barrocal also provides exclusive sessions with Dark Sky Alqueva astronomers, teaching participants to identify constellations and planets.
Alentejo's reputation as a top stargazing destination is further boosted by media coverage and social media trends. The Alqueva Dark Sky Route is marketed as a must-see travel experience, attracting more tourists eager to witness the region's stunning night skies. Online, breathtaking images and videos of Alentejo's celestial views continue to captivate and inspire.
For those considering a property in the area, the allure of Alentejo's dark skies is a unique selling point. Imagine having a front-row seat to the universe every night, a rare luxury that few places can offer. This natural wonder not only enhances the quality of life but also adds value to any property investment.
Whether you're an astronomy enthusiast or simply someone who appreciates the beauty of the night sky, Alentejo offers an unparalleled experience. The region's commitment to preserving its dark skies ensures that this celestial spectacle will remain a highlight for years to come.
Sources: Visit Portugal, São Lourenço do Barrocal
4) Alentejo’s growing popularity for artisanal crafts attracts niche market investors
The region's artisanal crafts and products are becoming increasingly popular, especially in niche markets.
In the Alentejo region, events like the August Fair in Grandola are a big draw, attracting over 100,000 visitors each year. These fairs are a showcase for local handicrafts, from wooden toys to cork products, highlighting the region's unique offerings. The growing online presence of local artisans has also made these handmade goods more accessible to a wider audience.
Consumer interest in handmade and locally-produced goods is on the rise, driven by a love for traditional techniques and natural materials. People are drawn to the uniqueness of these products, and media coverage has helped shine a light on their quality. Social media platforms like Instagram and Facebook are buzzing with artisanal products from Alentejo, further boosting their popularity.
Globally, the sales of artisanal crafts and products are expected to see significant growth from 2024 to 2028. This surge is fueled by a growing culture of gifting and a shift towards eco-friendly materials. The Alentejo region is perfectly positioned to benefit from these trends, with its rich tradition of craftsmanship.
Local artisans are tapping into this trend by expanding their online presence, making it easier for people around the world to discover and purchase their unique creations. This digital shift is crucial in reaching a broader audience and sustaining the growth of the artisanal market.
As more people seek out unique, handmade items, the Alentejo region's crafts are gaining a reputation for quality and authenticity. This is not just a local phenomenon; it's part of a larger global movement towards valuing handcrafted and sustainable products.
Sources: Where is the Market, PR Newswire
5) The friendly local community in Alentejo makes it a great place for newcomers
The local community in Alentejo is famously welcoming, making it a great place for newcomers.
One of the highlights is the Futurama Festival in Baixo Alentejo, where local, national, and international artists come together to celebrate cultural diversity. This festival is free, making it accessible to everyone and fostering a strong sense of community and belonging.
People in Alentejo love getting involved in local clubs and organizations. High participation rates show residents actively shaping public spaces and addressing community needs. This involvement helps newcomers feel integrated and supported as they settle in.
New residents often share their positive experiences, highlighting the region's welcoming nature. Many are satisfied with the peaceful coexistence of different cultures and religions, especially in places like Monsaraz. This historical town is a great example of cultural convergence, showing a community that values mutual respect and inclusivity.
Alentejo's community engagement trends reveal that residents are not just passive observers; they actively contribute to the community's vibrancy. This active participation is a key factor in making newcomers feel at home.
Whether it's through festivals, clubs, or everyday interactions, Alentejo's community spirit is palpable, offering a warm welcome to anyone looking to settle in this beautiful region.
Sources: Vive Europe, Futurama Alentejo, Social Pinpoint, Insight Vacations
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6) Alentejo’s thriving wine industry attracts wine lovers to invest in nearby properties
The Alentejo wine scene is thriving, attracting wine lovers to invest in local properties.
Over the last 25 years, the number of wine producers in Alentejo has skyrocketed by over 400%, reflecting a vibrant industry. This isn't just about making more wine; there's a big push for quality, with many producers embracing sustainability initiatives to improve their offerings.
Alentejo wines are gaining international fame, thanks in part to the WASP (Wine and Sustainability Program), which certifies sustainable production. This program covers a large part of the region, showing a strong commitment to environmentally friendly practices. These efforts have not only boosted the quality of the wines but also made them more appealing on the global stage.
Wine tourism is a key player in Alentejo's success. The region offers everything from vineyard stays to exclusive tastings and gourmet meals, drawing more and more tourists. Alentejo's unique terroir and rich history add to its allure, especially during peak times like late May, June, and the harvest festival in September.
The influx of wine enthusiasts and expatriates is pushing up property values in Alentejo. This trend is fueled by the growing interest in wine-related investments and the development of infrastructure supporting the wine industry. Media coverage has also put a spotlight on Alentejo as a rising wine destination, emphasizing the exceptional value and quality of its wines.
Sources: Alentejo Wine in Transition, Wineries in Alentejo, Enchanting Alentejo; A Wine Lover's Paradise
7) Alentejo’s pristine nature attracts investors who care about conservation
The Alentejo region's untouched natural beauty is a magnet for eco-conscious investors.
In recent years, there's been a growing interest in eco-friendly and sustainable investments here. Projects like the Neos·life Project and Ecoaldeia de Monsaraz are leading the way, offering sustainable living with independent water and energy systems, organic farms, and renewable energy. These initiatives align perfectly with the values of environmentally conscious investors.
Alentejo also boasts several conservation-focused real estate developments. Take Jardim do Mira, for example, which promotes biodiversity and environmental regeneration by restoring degraded landscapes and protecting natural habitats. Such projects not only boost the region's ecological value but also attract investors eager to support conservation efforts.
The region is home to protected natural landscapes like Parque Natural do Sudoeste Alentejano e Costa Vicentina. These areas offer legal protections that preserve the natural beauty, ensuring the environment remains pristine for future generations. This legal framework provides an added layer of security for investors interested in conservation areas.
Investors are drawn to Alentejo not just for its beauty but for its commitment to sustainability. The region's projects are designed to minimize environmental impact while maximizing ecological benefits, making it a prime location for those looking to invest in a greener future.
With its focus on sustainable development and conservation, Alentejo is becoming a hotspot for investors who want to make a positive impact. The region's untouched landscapes and innovative projects offer a unique opportunity to invest in a place that values both nature and progress.
Sources: Rhinolands, Jardim do Mira, Portugal Portfolio
8) In Alentejo, rising sustainable tourism is driving up property values
The Alentejo region is seeing a surge in sustainable tourism, which is boosting property values.
In 2023, resort housing prices in Alentejo jumped by 9.8%, continuing a trend of growth from previous years. This rise is fueled by the region's dedication to sustainability, attracting eco-conscious travelers. Alentejo's charm lies in its natural beauty and eco-friendly accommodations, like restored manor houses and modern eco-lodges, which offer unique sustainable experiences.
Projects such as Gavião Nature Village highlight the region's commitment to sustainability. They feature ecological cork shelters and organic gardens, aiming to instill ethical values in both staff and guests. The Portuguese government is also playing a role by promoting sustainable development in Alentejo, providing incentives for eco-friendly tourism projects.
This governmental support is encouraging investment in sustainable infrastructure, making Alentejo even more appealing. The growth in sustainable tourism is directly impacting property values, with coastal areas in Alentejo poised for increased property investments. The region's focus on eco-tourism is not just a trend but a strategic move to enhance its attractiveness.
Alentejo's commitment to sustainability is evident in its efforts to blend traditional charm with modern eco-friendly practices. This approach is drawing more visitors and investors, eager to be part of a region that values both its heritage and the environment. The rise in property values is a testament to the successful integration of these elements.
For those considering buying property in Alentejo, the region offers a unique opportunity to invest in an area that is not only beautiful but also forward-thinking in its approach to tourism and development. The combination of government support, sustainable practices, and natural allure makes Alentejo a promising destination for property investment.
Sources: The Portugal News, Offugo Travel, Esales International, Luxury Tribune
We have made this infographic to give you a quick and clear snapshot of the property market in Portugal. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) You can save on renovation costs thanks to local government incentives for rural development in Alentejo
Renovating a property in Portugal's countryside has become more affordable thanks to local government incentives.
These incentives include financial support from the European Agricultural Fund for Rural Development, which has been a game-changer for property owners. By allocating funds to rural projects, renovation costs have significantly decreased, making it easier for people to invest in these areas.
In 2023, Portugal sweetened the deal with tax breaks aimed at property renovations. By reducing VAT on electricity and fuel taxes, the overall renovation expenses have been slashed, allowing more owners to take on these projects without breaking the bank.
Portugal's Recovery and Resilience Plan is another boost, with EUR 2.73 billion set aside to increase affordable housing, especially in rural regions. This funding not only supports home renovations but also encourages more people to consider investing in rural properties.
These efforts are part of a broader strategy to breathe new life into rural areas, making them more attractive to potential buyers. With these financial incentives, the dream of owning a charming countryside home is more attainable than ever before.
For those eyeing a slice of rural paradise, these government measures mean less financial strain and more opportunities to create a perfect getaway or permanent residence.
Sources: Economy Finance, Seasons in Colour, Agriculture Europe
10) Alentejo attracts nature lovers with birdwatching, boosting eco-tourism potential
Alentejo is becoming a hotspot for birdwatchers, boosting its eco-tourism appeal.
In this region, you can spot fascinating birds like the Griffon Vulture, Black Stork, and Eagle Owl. These aren't just any birds; some are threatened species, making the experience even more special for bird enthusiasts. Imagine the thrill of seeing these majestic creatures in their natural habitat, knowing you're witnessing something rare and important.
Visitors are flocking to Alentejo, not just for the birds but for the whole package. Guided tours offer more than just birdwatching; they include hiking and wild food foraging, appealing to a wide range of nature lovers. This trend fits perfectly with the global shift towards sustainable travel, where people are looking for experiences that connect them with nature.
Alentejo is stepping up its game in sustainable tourism. The region is seeing a rise in eco-friendly accommodations and services, thanks to support from EU funds. These funds are helping to build sustainable infrastructure, making the area even more attractive to eco-conscious travelers.
The local government is also playing its part by launching initiatives to make Alentejo greener and more connected. This proactive approach is crucial in supporting the growth of eco-tourism, ensuring that visitors have a positive impact on the environment while enjoying their stay.
With all these efforts, Alentejo is not just a place to visit; it's a destination that offers a meaningful connection with nature, drawing in those who care about the environment and want to experience it firsthand.
Sources: Lifestyle Hotels, European Commission, Grand View Research
11) Alentejo’s quieter coastline offers great opportunities for beachfront property investments compared to the Algarve
The Alentejo region's coastline is less crowded than the Algarve, offering untapped potential for beachfront properties.
With its very low population density, Alentejo is one of Portugal's least populated areas, unlike the bustling Algarve, which has seen a population boom. This means you can enjoy more space and tranquility in Alentejo.
Alentejo's coastal infrastructure is still developing, focusing on unique experiences like rural tourism and cultural events. This early stage of growth means there's plenty of room for investment in tourism and property development.
Property prices in Alentejo are generally lower than in the Algarve, where prices have surged. This makes Alentejo a more affordable option for those eyeing beachfront investments.
Tourism in Alentejo is on the rise but remains less crowded than in the Algarve. The region is seeing steady growth, yet with occupancy rates under 30%, there's still a lot of potential for tourism development.
While the Algarve is bustling, Alentejo offers a quieter alternative with untapped potential for beachfront properties, making it an attractive option for those seeking a peaceful retreat.
Sources: The Portugal News, EUROPA, Portugal Resident, Property Market Index Report
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12) Alentejo is close to Lisbon, making it a perfect getaway for city folks looking for second homes
Alentejo is just a stone's throw from Lisbon, making it a perfect getaway for city folks eyeing a second home.
With Lisbon's property prices soaring, Alentejo stands out as a budget-friendly alternative. Imagine snagging a charming countryside retreat without breaking the bank. The real estate market here is much more affordable, offering a financial breather for those priced out of the capital.
Getting to Alentejo is a breeze now, thanks to improved roads and transport links. Whether you're driving or hopping on public transport, the journey is smooth and quick. This ease of access has sparked a surge in property deals, as more city dwellers are drawn to the region.
There's a growing trend of people craving the peace of rural life, and Alentejo's laid-back vibe is just what the doctor ordered. It's a place where you can unwind, far from the city's hustle. This shift towards rural retreats is catching on, with many Lisbon residents showing keen interest in Alentejo's offerings.
Surveys and media reports back this up, highlighting a rising demand for second homes in Alentejo among city folks. The allure of a quieter, simpler life is hard to resist, and Alentejo delivers just that.
So, if you're dreaming of a second home that's both affordable and accessible, Alentejo might just be your perfect match.
Sources: Vive Europe, Portugal Buyers Agent
13) Alentejo’s fertile land is perfect for agritourism and farm-to-table businesses
Alentejo's agricultural land is incredibly fertile, thanks to its Mediterranean climate.
With mild winters and dry summers, Alentejo is perfect for growing olives, grapes, and almonds. This consistency makes it a reliable source of high-quality produce year after year.
As the world craves more organic and locally-sourced food, Alentejo is ready to deliver. The region's focus on authenticity and sustainability aligns with what consumers want, especially with products that have a "seal of origin."
Agritourism is booming in Europe, and Alentejo is a hot spot for it. With its fertile land, the region offers unique farm-to-table experiences that attract tourists looking for sustainable travel options.
Visitors are drawn to Alentejo not just for its beauty but also for its high-quality olive oil and wine. These products enhance the region's appeal as a top agritourism destination.
Sources: Source 1, Source 2, Source 4
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.