Investment Property in Porto

Invest in Real Estate in Porto

Porto property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Porto .

Search Map of Porto Investment Real Estate

Porto or Oporto (Portuguese pronunciation: [ˈpoɾtu] (listen)) is the second-largest city in Portugal, the capital of the Oporto District, and one of the Iberian Peninsula’s major urban areas. Oporto city proper, which is the entire municipality of Porto, is small compared to its metropolitan area, with an estimated population of just 231,800 people in a municipality with only 41.42 km. Porto’s metropolitan area has around 1.7 million people (2021) in an area of 2,395 km (925 sq mi), making it the second-largest urban area in Portugal. It is recognized as a global city with a Gamma + rating from the Globalization and World Cities Research Network.

Located along the Douro River estuary in northern Portugal, Oporto is one of the oldest European centres, and its core was proclaimed a World Heritage Site by UNESCO in 1996, as “Historic Centre of Porto, Luiz I Bridge and Monastery of Serra do Pilar”. The historic area is also a National Monument of Portugal. The western part of its urban area extends to the coastline of the Atlantic Ocean. Its settlement dates back many centuries, when it was an outpost of the Roman Empire. Its combined Celtic-Latin name, Portus Cale, has been referred to as the origin of the name Portugal, based on transliteration and oral evolution from Latin. In Portuguese, the name of the city includes a definite article: o Porto (“the port” or “the harbor”), which is where its English name “Oporto” comes from.

Port wine, one of Portugal’s most famous exports, is named after Porto, since the metropolitan area, and in particular the cellars of Vila Nova de Gaia, were responsible for the packaging, transport, and export of fortified wine. In 2014 and 2017, Oporto was elected The Best European Destination by the Best European Destinations Agency. Oporto is on the Portuguese Way path of the Camino de Santiago.

The financial stability of Porto has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Porto

Renting out your Porto buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Porto are – preparation is key.

Set goals based on how much rental yield will be required and the local rental yield rates in Porto and be prepared to change your initial outlook.
Thoroughly research the Porto location with a special emphasis on fringe areas outside the main Porto metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Porto.
Ensure that your target investment property in Porto appeals to professionals. This is a demographic that ensures maximum income and low voids.
Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

With our expert guidance, investing in Porto provides the secure knowledge that your money is working harder than it would in a local Porto bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Porto, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Porto property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Porto

Flipping property in Porto

Flipping property is when we advise clients to buy a Porto property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Porto market has a time to react to the renovation.

The Flipping Strategy in Porto

Investment property flipping in Porto is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Porto real estate investments are sometimes referred to by professionals as ‘distressed’ Porto real estate.

What is distressed Porto property:

Porto property in need of renovation
Porto real estate with a change of purpose and use
Oversold Porto property
Bank repossessions in Porto

Put simply, long term investors in Porto purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Porto investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Porto property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Porto use a minimum profit value of 22% when looking at potential Porto projects.

The reason for this is because there are lots that can go wrong in Porto property flipping and working on a potential margin of 22% should still leave a good margin of error.

Invest through a Fund in Porto

Property Secured Investments is a Private Equity fund that invests in Porto and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

Luxury Property in Porto

For luxury property investors hoping to add a superb property in Porto to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Porto, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Porto should be entrusted to only the highest-quality agency.