As Portugal continues to captivate global investors with its charming locales and robust investment prospects, coastal cities near Lisbon, like Ericeira, Carcavelos, Cascais, Estoril, and Setúbal, are increasingly sought-after by our clients in 2024. These areas are particularly appealing due to their proximity to Lisbon, allowing homeowners to enjoy the dual benefits of urban convenience and coastal serenity. Additionally, these areas offer a range of ready-to-move-in properties and new-build projects with more spacious living options compared to central Lisbon. These attributes not only promise significant returns on investment but also fulfil the growing demand for a blend of lifestyle and luxury, making these locales a top choice for discerning investors and lifestyle seekers alike.

Ericeira: A Surfer’s Haven with Luxury Appeal

Over the past decade, Ericeira has transformed from a hidden gem into a global hotspot for surf culture and luxury living. As a recognised World Surf Reserve, the town’s pristine beaches and consistent waves attract a global community of surf enthusiasts and high-net-worth individuals. The recent shift in housing laws, which restricts short-term rentals in Lisbon and other major coastal areas, has meant that many investors can only rent their property on a long-term basis in Ericeira.

However, our portfolio includes unique villas in Ericeira which are eligible for short-term rentals. A truly rare find, this aspect, coupled with the year-round popularity of the location, means that savvy investors can generate rental yields of up to 7% (gross). What’s more, investors have the flexibility to capitalise on Ericeira's booming tourism sector while also enjoying their property.

Ericeira’s rich local culture and commitment to sustainability further enhance its appeal, promising not just financial returns but a high quality of life.

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Carcavelos: The Ideal Blend of City Buzz and Beach Serenity

Just 20 minutes by train from central Lisbon, Carcavelos offers the first wide, sandy beach along the Lisbon-Cascais coastline. Known for its vibrant surf scene and community events, it also boasts top educational institutions like Saint Julian's School and the Nova School of Business & Economics. Despite its many attractions, property prices in Carcavelos remain about 40% lower than in neighbouring Cascais and Estoril, providing an attractive investment opportunity for those seeking a balance of urban accessibility and coastal relaxation. Considering the price per square metre, which ranges from €7,000 to €8,500, the area’s ongoing development projects signal a growing demand that can be leveraged for substantial capital gains. Historically, new-build opportunities have been hard to find in Carcavelos so it’s exciting to see the neighbourhood is finally responding to this demand, making it a melting pot of nationalities and a testament to a simple yet vibrant way of life, all against the backdrop of a city in motion.

Cascais and Estoril: Exclusivity and Elegance

Adjacent to Lisbon, Cascais and Estoril are synonymous with luxury and tranquillity. These towns offer a mix of high-end apartments, mansions, and spacious houses ideally suited for families looking to relocate. A fantastic area for those who love to be outdoors, nearby you will find renowned golf courses, hiking trails, and the beautiful Sintra National Park. Thanks to their strategic location, properties here are perfect for those who want to enjoy an excellent quality of life surrounded by nature and be just a short drive from the bustling capital.

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One of the most sought-after addresses here is Quinta da Marinha, which offers a diverse range of properties, starting from stunning one-bedroom houses priced at €1.5m to more palatial properties with private pools and sprawling gardens.

Setúbal: A Rising Star with Natural Charms

Setúbal, located to the south of Lisbon, is gaining traction as an investment destination due to its natural beauty and lower property prices compared to the more developed coastal cities. The region offers a blend of beautiful beaches, a thriving culinary scene, and access to the Arrábida Natural Park, making it attractive for both residential and holiday property investments. The potential for property value appreciation in Setúbal is significant as more investors and homebuyers discover its untapped opportunities.

Credits: Supplied Image; Author: Client;

Why Invest in these Coastal Cities?

The coastal cities near Lisbon offer a compelling mix of lifestyle and investment opportunities. The unique combination of leisure, culture, and natural beauty, coupled with strategically located, spacious properties with lower prices per square metre than central Lisbon, make these areas ideal for investors aiming for both capital gains and a wonderful lifestyle. With their diverse offerings, these regions cater to a wide range of preferences and budgets, ensuring that every investor can find their perfect spot on Portugal’s stunning coast.

Credits: Supplied Image; Author: Client;

In conclusion, whether it's the surf-friendly shores of Ericeira, the youthful vibrancy of Carcavelos, the elegant tranquillity of Cascais and Estoril, or the natural allure of Setúbal, Portugal’s coastal cities are poised to offer lucrative and lifestyle-rich investment opportunities in 2024. Investors are advised to consider these areas for their next residential or commercial ventures, as they promise not only financial rewards but also a chance to be part of thriving, dynamic communities.

Athena Advisers, 2024

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