Investing in Property in Central Portugal: Why Coimbra & Figueira da Foz Are Prime Real Estate Markets

Central Portugal is gaining popularity among real estate investors looking for affordable property prices, high rental yields, and strong long-term appreciation potential. Unlike the Algarve and Lisbon, where property prices have skyrocketed, Coimbra and Figueira da Foz offer attractive opportunities for investors seeking residential, commercial, and vacation rental properties.

This guide explores why Investing in Property in Central Portugal—particularly in Coimbra and Figueira da Foz—is a smart move in 2025 and beyond.

Coimbra: A Thriving Real Estate Market in Portugal’s Academic Hub

1. The Appeal of Coimbra for Property Investors

As Portugal’s third-largest city and home to the prestigious University of Coimbra, this historic town offers a stable real estate market with strong rental demand. Some key factors driving investment in Coimbra include:

•    Affordable Property Prices: Compared to Lisbon and Porto, Coimbra remains relatively inexpensive while still offering excellent quality of life.

•    Strong Rental Demand: With thousands of students, faculty, and professionals, long-term rental demand is high, ensuring consistent rental income.

•    Cultural and Historical Significance: As a UNESCO-listed city, Coimbra attracts tourists, making it ideal for short-term rental investments.

2. Best Neighborhoods in Coimbra for Investment

•    Baixa (Downtown Coimbra): Ideal for short-term rentals and Airbnb, this area is filled with historic buildings, restaurants, and shops.

•    Solum: A more modern neighborhood, perfect for family residences and student rentals.

•    Santa Clara: Known for its scenic views and quieter environment, Santa Clara is rising in popularity among retirees and expats.

3. Coimbra’s Real Estate Market Trends

Recent trends show that:

✅ Property prices have been steadily increasing, but they remain 50-60% lower than in Lisbon.
✅ Demand for student housing and co-living spaces is growing.
✅ Investors can expect rental yields of 4-7%, depending on location and property type.

Investment Tip:
Consider purchasing a renovation property in Coimbra’s historic districts. With Portugal’s Golden Visa program, restoring an old building can qualify investors for residency benefits.

Figueira da Foz: A Coastal Haven for Property Investors

1. Why Figueira da Foz Is a Hotspot for Real Estate Investment

Located along the Silver Coast, Figueira da Foz is a charming seaside city known for its:

🏖️ Beautiful beaches and tourism appeal
🏡 Affordable beachfront properties
📈 Growing demand for holiday rentals and retirement homes

2. Types of Properties in Demand in Figueira da Foz

•    Beachfront Apartments: These offer high potential for short-term vacation rentals, especially in summer.

•    Traditional Portuguese Villas: Popular among expats and retirees looking for a peaceful coastal lifestyle.

•    Commercial Properties: With Figueira’s growing tourism sector, investing in guesthouses, boutique hotels, or restaurants can be lucrative.

3. Real Estate Market Outlook in Figueira da Foz

✔️ Property prices are still undervalued compared to Algarve or Cascais, but they are rising as demand increases.
✔️ The average rental yield for short-term rentals is between 5-9%, making it one of the most profitable coastal cities in Portugal.
✔️ The city’s infrastructure improvements, such as better road connections to Lisbon and Porto, are increasing property values.

Legal and Financial Considerations for Investors

Before Investing in Property In Central Portugal, consider the following:

1. Property Taxes & Costs

•    IMT (Property Transfer Tax): Ranges from 0% to 8%, depending on property value.
•    IMI (Municipal Property Tax): Typically between 0.3% to 0.5% annually.
•    Notary & Legal Fees: Usually around 1-2% of the purchase price.

2. Financing & Mortgages

Non-residents can obtain a mortgage in Portugal, with:

🏦 Loan-to-Value (LTV) ratios of up to 70%.
📉 Interest rates as low as 3-5%.

3. Golden Visa & Residency Benefits

Investing in property over €280,000 in certain areas may qualify for Portugal’s Golden Visa program. This provides:
✅ EU residency benefits
✅ Path to Portuguese citizenship
✅ Tax advantages for non-habitual residents (NHR)

Final Thoughts: Is Now the Right Time to Invest?

With property prices in Lisbon and Porto becoming unaffordable, investors are increasingly turning to Coimbra and Figueira da Foz for better value, higher rental yields, and long-term appreciation potential.

📌 Key Takeaways:

✔️ Coimbra is best for stable, long-term rentals due to its student population.
✔️ Figueira da Foz offers high-yield vacation rental potential with beachfront properties.
✔️ Property values in both cities are rising steadily, making them ideal for early-stage investors.

 Ready to invest? Contact Novvanest for expert guidance on finding the best real estate opportunities in Central Portugal!