Authored by the expert who managed and guided the team behind the Portugal Property Pack
Yes, the analysis of the Alentejo's property market is included in our pack
Where are the best places to invest in the Alentejo right now? Is Évora still the top pick, or are towns like Beja, Sines, and Comporta gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the region. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in the Alentejo and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
1) Comporta is drawing interest for its luxury beachfront properties and high appreciation potential as a trendy escape for the wealthy
Comporta is quickly becoming a hotspot for luxury real estate in Portugal.
In 2023 and 2024, property prices in Comporta and Melides jumped by 28.57%, reaching €9,000 per square meter. This surge underscores the area's growing allure as a prime destination for luxury seekers. While prices are rising, they still offer a competitive edge compared to other upscale areas.
For instance, nearby Alcácer do Sal and Grândola had much lower prices, at €2,067 and €1,273 per square meter, respectively, in 2023. This makes Comporta an attractive option for those eyeing luxury investments without the hefty price tag of more established markets.
The region is buzzing with new luxury resort developments, earning it the nickname "New Hamptons" of Portugal. Projects like "Casas do Sal" are not just building homes; they're building Comporta's reputation as a luxury hotspot, attracting global personalities and investors.
Comporta's charm lies in its blend of rustic beauty and modern luxury, offering a unique escape for the wealthy. The area is becoming a trendy retreat, with its pristine beaches and serene landscapes drawing in those looking for a slice of paradise.
As more people discover Comporta, the potential for property appreciation grows, making it a smart choice for investors. The combination of natural beauty and upscale living is turning this once-sleepy village into a must-visit destination for the elite.
Sources: Idealista, The Portugal News
A real estate listing for a €3,990,000 private resort residence in Comporta, Portugal, offering luxury living within a natural sanctuary with private beach access and serene landscapes. (Source: Immo Lusitania)
2) Portalegre is attracting interest for its affordable homes and natural surroundings, appealing to retirees
Portalegre is becoming a hot spot for real estate, thanks to its affordable housing and beautiful natural surroundings, especially appealing to retirees.
In Portalegre, property prices have stayed low compared to other parts of Portugal. For example, the average monthly rent is just €221, much cheaper than in bustling cities like Lisbon and Porto. This makes it a great choice for retirees looking to stretch their budget.
Living in Portalegre is also easy on the wallet. The average cost of living is $1279, which is close to the global average and much less than in Portugal's bigger cities. This means retirees can enjoy a comfortable lifestyle without breaking the bank.
Portalegre's natural beauty is another big draw. Nestled in the Alentejo region, it's famous for its stunning landscapes and outdoor activities. This peaceful and picturesque setting is exactly what many retirees are after.
The area is also seeing a rise in its expatriate community, showing that it's becoming a popular spot for those seeking a tranquil lifestyle and natural attractions. Retirees are finding a welcoming and serene environment here.
With its combination of low costs and beautiful surroundings, Portalegre is quickly becoming a favorite for those looking to retire in Portugal. The growing interest from foreign residents is a testament to its appeal.
Sources: Living Cost, ETIAS, Expatica
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) The Alqueva region is gaining interest for its eco-tourism projects and attractive lakeside living
The Alqueva region is a real estate hot spot, thanks to eco-tourism projects and lakeside living.
In recent years, property prices have jumped by 15.3%, making it one of Europe's top markets. This surge is fueled by both local and international buyers eager to invest in this scenic area.
Eco-tourism is a big driver of this boom. The region is marketed as an archaeological tourism hub, with attractions like the Dark Sky Alqueva astro-tourism project and Neolithic festivals. These initiatives not only draw tourists but also make the area more appealing for potential residents.
Eco-friendly accommodations are popping up everywhere, adding to the allure. Take the Amieira Marina, for example, which rents out boat-houses to tourists. This aligns with the growing trend of sustainable living, a key factor for many property seekers today.
Surveys show that potential buyers have a strong preference for eco-friendly properties, which is why developments like these are so popular. The combination of natural beauty and sustainable living options makes Alqueva a unique place to call home.
With its blend of nature and modern amenities, the Alqueva region is a prime example of how eco-tourism can boost real estate. It's not just about buying a home; it's about investing in a lifestyle that values both comfort and sustainability.
Sources: Property Market Index Report Portugal 2024-2025, Pasos Online
4) Évora's historic center is booming with its UNESCO status attracting tourists and boosting short-term rental yields
Évora's historic center is a hot spot for real estate, thanks to its UNESCO World Heritage status.
This prestigious designation not only highlights Évora's cultural and historical charm but also draws in a steady stream of tourists. With more visitors eager to explore the city's rich past, there's a growing demand for accommodations, especially short-term rentals.
Property prices in Évora's historic center are on the rise, reflecting this increased interest. Previously, the median price for an apartment was €2,593 per square meter, while houses were at €2,715 per square meter. These numbers show a strong market, appealing to both tourists and investors seeking profitable rental opportunities.
Tourism is a key player in boosting short-term rental yields. While specific visitation stats for Évora aren't detailed, the general trend of rising tourism in Portugal, particularly in UNESCO-listed areas, supports this. During the summer months, short-term rental occupancy rates in Évora peak, hitting 81% in August 2022, highlighting the high demand during tourist seasons.
Investors are keen on Évora not just for its beauty but for the lucrative rental returns it offers. The city's historic allure combined with its UNESCO status makes it a magnet for tourists, ensuring a steady flow of potential renters.
For those looking to invest in a property that offers both cultural richness and financial gain, Évora's historic center is a prime choice. The combination of its heritage status and the booming tourism industry makes it a smart investment for anyone eyeing the Portuguese real estate market.
Sources: Properstar, PriceLabs, GoldCrest
5) Marvão is gaining interest for its hilltop charm and potential property appreciation as a cultural and historical destination
Marvão is catching the eye of property buyers thanks to its unique hilltop location and potential for property appreciation.
In recent years, property prices in Marvão have been climbing, with a 12.4% increase in April 2024, showing strong potential for appreciation. This charming village is not just about numbers; it's about the experience of living in a place where history and beauty meet.
Tourism is booming in Portugal, and Marvão is riding that wave. In 2023, the country saw a resurgence in tourism, with overnight stays reaching 77.1 million and over 30 million guests. This upward trend continued into 2024, bringing more visitors to Marvão's doorstep.
Marvão's allure is not just in its numbers but in its story. The village is often featured in media for its medieval castle, narrow streets, and Gothic arches, painting a picture of a fairytale destination. It's a place where history is alive, and every corner tells a story.
The cultural scene in Marvão is vibrant, with a cultural center and a municipal museum adding to its charm. These institutions not only preserve the past but also offer a glimpse into the village's dynamic present, making it a cultural hub in the region.
For those considering a property investment, Marvão offers more than just a home; it offers a lifestyle steeped in history and culture, with the added benefit of potential property appreciation as a cultural and historical destination.
Sources: Global Property Guide, CaixaBank Research, Portugal.net
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6) Sines is booming with its expanding port and industrial zone driving demand for residential and commercial properties
Sines is buzzing with a real estate boom, thanks to its expanding port and industrial zone.
Big players like Repsol are pouring money into Sines, with a whopping €657 million investment to boost their industrial complex. This project is set to be up and running by 2025, turning Sines into a major industrial hub in Europe. The buzz around this development is drawing in more workers, which means more demand for housing.
The Sines Industrial Complex expansion is a big deal, marking the largest industrial investment in Portugal over the past ten years. The Portuguese government even labeled it as an investment of Potential National Interest, highlighting its significance to the national economy. Naturally, this has led to a surge in housing demand as the industrial activities ramp up.
Property prices in Sines are climbing, with the average asking price per square meter hitting €4,172 in 2023. This rise is fueled by a mix of tourism growth and foreign investments. The Portuguese government is also playing its part by offering tax incentives and making processes smoother, making Sines a hot spot for international investors.
For those eyeing a property in Sines, it's not just about the numbers. The town's charm, coupled with its strategic location, is a magnet for both residential and commercial interests. The expanding port and industrial zone are not just creating jobs but also transforming Sines into a vibrant community.
Sources: Portugal Buyers Agent, Repsol, Brint Portugal
7) Monsaraz is gaining attention for its medieval charm and rising demand for vacation homes with stunning Alqueva Lake views
Monsaraz is catching eyes for its medieval charm and stunning views of Alqueva Lake.
People are flocking to this quaint village, partly because of the rise in vacation rentals on platforms like Airbnb. These rentals cater to tourists who crave both scenic beauty and a touch of history. The village's allure is further amplified by media buzz from travel sites like Portugal-Undiscovered and Bon Traveler, which spotlight its unique charm and breathtaking views.
Infrastructure around Alqueva Lake is also getting a boost, with new amenities like water sports and boat trips making the area even more attractive. This development is a big draw for those looking to invest in vacation homes. The village's well-preserved castle, cobblestone streets, and white-washed houses add to its appeal, offering a picturesque setting that feels like stepping back in time.
Tourism is booming, with overnight stays in the Alentejo region up by 10.7% in 2023. This surge in visitors is a testament to Monsaraz's growing popularity. The village's charm is undeniable, and its scenic views of Alqueva Lake are a major selling point for potential property buyers.
For those considering a property purchase, Monsaraz offers a unique blend of history and natural beauty. The village's medieval charm and the stunning backdrop of Alqueva Lake make it a compelling choice for a vacation home. With the added benefit of increased tourist interest, investing in Monsaraz could be a wise decision.
Sources: Portugal-Undiscovered, Bon Traveler, INE Portugal
8) Beja is attracting investors with affordable property prices and growth potential due to ongoing infrastructure improvements
Beja is catching the eye of investors due to its affordable property prices.
In recent years, Beja has offered some of the lowest house prices in Portugal, with costs ranging from 747 €/m² to 1,047 €/m². This makes it a prime spot for those looking to dive into the real estate market without breaking the bank.
What's more, Beja is undergoing significant infrastructure improvements. New road projects and public transport links are in the works, which will make the town more accessible and appealing to potential investors.
Real estate agencies are taking note, with companies like Green Acres highlighting Beja as an emerging market. This attention from industry professionals signals a growing recognition of Beja's potential.
Both domestic and international investors are starting to see Beja as a promising investment location. The buzz around the town is building, thanks to its affordability and development plans.
As Beja continues to develop, it's becoming a more connected and attractive place for property buyers. The town's transformation is drawing interest from those eager to invest in a growing market.
Sources: Green Acres, Idealista, The Portugal News
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) Grândola is gaining interest for its coastal proximity and closeness to Lisbon, appealing to commuters and second-home buyers
Grândola is quickly becoming a hot spot for property buyers due to its prime location near the coast and Lisbon.
In recent years, property prices in Grândola have surged, reflecting a growing interest in this charming area. This trend is part of a larger movement across Portugal's coastal regions, where the natural beauty and appeal are drawing more people in.
One major draw is Grândola's closeness to stunning beaches like Comporta, which are famous for their breathtaking landscapes and tourist appeal. This makes Grândola not just a great place to visit, but also a fantastic place to live. Plus, with better transportation links to Lisbon, commuting has become easier, making it perfect for those who work in the city but want a more laid-back lifestyle.
There's also been a noticeable increase in real estate developments and luxury resorts in the area, showing that investors are taking a keen interest in Grândola. These new developments offer modern amenities and a high quality of life, attracting new residents who are looking for something special.
Media coverage has also played a role in putting Grândola on the map as an emerging hotspot, which has boosted its visibility and attracted more buyers. This increased attention is making Grândola a more desirable place to invest in property.
Sources: Global Property Guide, Lisbon Property, Agence Etoile
Here is a stunning luxury villa for sale in Carvalhal, a parish located within the municipality of Grândola, offering breathtaking panoramic views, modern amenities, and spacious outdoor living areas perfect for relaxation and entertaining. (Source: John Taylor)
10) Serpa is gaining attention for its traditional Alentejo architecture and rising rural tourism interest, boosting property values
Serpa is turning heads in the property market for some compelling reasons.
In the Alentejo region, where Serpa is nestled, property prices have jumped by 13.4% in April 2024 compared to last year. This uptick signals a growing interest in the area, with Serpa being a key player in this trend.
Rural tourism is another big draw. Over the last decade, Alentejo has become a hotspot for tourists, with more people choosing to spend the night and soak in the local vibe. This influx of visitors is great news for Serpa, known for its charming traditional Alentejo architecture.
Local initiatives are also making waves. There are ongoing projects to improve infrastructure and amenities in Serpa, making it even more appealing to tourists and potential property buyers. These developments are likely to push property values higher and increase transactions.
Serpa's unique architecture and lifestyle are getting a lot of love on social media, which is helping to boost its profile. People are drawn to the authentic rural charm that Serpa offers, making it a desirable spot for those looking to invest in property.
With all these factors in play, it's no wonder that Serpa is becoming a hot market. The blend of traditional charm and modern development is a winning combination for anyone looking to buy property in the countryside.
Sources: Global Property Guide, OECD, Home in Portugal
11) Alandroal is gaining interest for its proximity to the Spanish border and cross-border economic opportunities
The area around Alandroal is buzzing with increased real estate activity due to its strategic location near the Spanish border.
With Spain's exports to Portugal hitting $33.57 billion in 2023, the strong trade ties between these neighbors are boosting the region's economy. This economic vitality makes Alandroal a hot spot for real estate investors. The Spanish real estate market is also on the rise, with new home prices jumping by 10.7% in early 2024. Alandroal, being so close to Spain, is likely to ride this wave of growth.
Adding to the allure is the development of the L’and of Alandroal, a luxurious 5-star rural tourism project. This venture not only makes the area more attractive but also hints at better infrastructure and connectivity to Spain. The fact that regional funds are backing this project shows some government support, which is a green light for more investors.
Even without specific data on Spanish investors, the overall growth in Spain's real estate and new businesses popping up in Alandroal suggest potential job creation and population growth. The investment in L’and of Alandroal is a prime example of a successful cross-border economic initiative, boosting the area's economic prospects.
Sources: Trading Economics, Auraree, CaixaBank Research
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12) Vila Nova de Milfontes is thriving with its scenic coast and rising holiday rental demand, offering strong rental yields
Vila Nova de Milfontes is a charming coastal town that has captured the hearts of many.
Its stunning seaside views and rich history make it a standout choice compared to busier spots like the Algarve. People are drawn to its unique blend of natural beauty and cultural depth, offering a peaceful escape from the hustle and bustle.
As more tourists discover this gem, the demand for holiday rentals has surged, especially in areas close to the beach and town center. This growing interest is reflected in the rising property prices, as visitors seek out the town's serene atmosphere and breathtaking scenery.
Vacation rentals here enjoy high occupancy rates, thanks to the town's cleanliness, amenities, and overall appeal. This popularity ensures strong rental yields, particularly during the busy tourist seasons, making it a smart investment for those looking to buy property.
Investors are noticing the lucrative potential of owning property in Vila Nova de Milfontes, as the town continues to attract a steady stream of visitors. The combination of its picturesque setting and increasing rental demand makes it an enticing option for property buyers.
Whether you're looking for a peaceful retreat or a profitable investment, Vila Nova de Milfontes offers a compelling opportunity with its unique charm and growing popularity.
Sources: CaixaBank Research, Airbnb, Portugal Buyers Agent
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.