Lisbon remains one of the strongest short-term rental markets in Europe. Tourist demand stays high for most of the year, allowing owners to earn higher returns than traditional long-term rentals when the property is well managed and properly positioned in the market.

Average nightly rate

In central areas such as Baixa, Alfama, Arroios, Estrela or Alcântara, a well-equipped one-bedroom apartment can charge between €60 and €140 per night, depending on the season, the quality of the property and its features (view, natural light, balcony, etc.).
In low season, prices tend to be closer to €60 to €90, while in high season they can reach €120–€140, or more in some cases.

Average occupancy

A well-managed short-term rental in Lisbon can reach an average annual occupancy between 60% and 90%.
In high season, occupancy often approaches 90% or more, while in low season there are fewer bookings.

Realistic revenue example

In practice, a one-bedroom apartment in Lisbon can generate between €22,000 and €25,000 per year in gross revenue, combining very strong months with weaker ones, reflecting market seasonality and price variations throughout the year.

Real costs

The main costs of a short-term rental are:

• Cleaning and laundry

• Platform fees (Airbnb, Booking, etc.)

• Water, electricity and internet

• Management fee (if applicable)

• Minor maintenance

In most cases, these costs represent around 20% to 30% of total revenue.

Net profit

After all expenses, a well-located one-bedroom apartment can generate around €17,000 per year in net profit, which is about €1,400 per month for the owner.
Even with lower prices in the low season, short-term rentals often earn 30% to 60% more than traditional long-term rentals.

Common mistakes

The biggest mistakes owners make are:

• Incorrect nightly pricing, especially in low season

• Poor-quality photos

• Slow responses to guests

• Not optimizing the listing

• Trying to manage everything alone

These mistakes drastically reduce occupancy and annual income.

Want to know how much your apartment could generate in short-term rental income? Send us the address and type of property.