As the year comes to an end, it’s the perfect time to reflect on the performance of holiday rentals in Lagos, Portugal, in 2024. This vibrant coastal town continues to attract visitors from around the world, offering a mix of stunning beaches, cultural charm, and year-round appeal.
Let’s dive into what we’ve learned about the market this year and the key takeaways for property owners and investors.
Occupancy Rates and Rental Demand
The holiday rental market in Lagos saw strong demand throughout 2024, with an average occupancy rate of 65%. Peak summer months, particularly July and August, achieved nearly 90% occupancy, as tourists flocked to enjoy Lagos's beaches and lively atmosphere.
For the year as a whole:
- Average Daily Rate (ADR): €201, reflecting the popularity of well-equipped villas and apartments.
- Monthly Revenue for High-Performing Properties: Around €20,175 during peak months.
(Source: AirDNA)
Key Insight: Properties with premium features such as private pools, ocean views, and proximity to the Marina consistently outperformed others in terms of occupancy and revenue.
Property Values
2024 was also an excellent year for property owners in Lagos. The Algarve saw an 8.4% increase in property values, and Lagos was no exception. Both investors and homeowners benefited from this continued growth.
- Average asking price per square meter: €4,444 for apartments, €4,543 for houses.
- Rental prices: Increased by 5.1% year-on-year, highlighting the sustained demand for holiday properties in Lagos.
Key Insight: For property owners, 2024 was a year of both increasing rental yields and rising asset values, making Lagos an attractive market for new investments.
Tourism Trends
Tourism remained the backbone of Lagos's rental market in 2024, with Portugal's tourism sector contributing €33.8 billion to the national economy. Lagos benefited from its reputation as a premier destination, known for its historic charm, outdoor activities, and relaxed lifestyle.
Notably:
- A growing number of digital nomads and long-stay travellers chose Lagos for its mild climate and reliable infrastructure.
- European visitors (particularly from the UK, Germany, and France) continued to dominate the market, but Lagos also saw a rise in guests from the United States and Canada.
Lessons from 2024
This year highlighted several trends that shaped the holiday rental market in Lagos:
- Longer Stays
- Travelers are staying longer, averaging 5-7 nights, with some staying even longer thanks to flexible remote work arrangements.
- Properties that cater to digital nomads, offering high-speed internet, ergonomic workspaces and quiet locations, performed particularly well.
- Luxury and Amenities are Key
- Guests were willing to pay premium rates for properties with private pools, air conditioning, ocean views and modern interiors.
- Listings with standout amenities consistently achieved higher revenue and occupancy.
- Sustainability Matters
- Travellers are increasingly eco-conscious, favouring properties with solar panels, water-saving systems and eco-friendly practices.
- Offering sustainable features has both improved guest satisfaction and added to long-term property value.
Conclusion
Lagos has proven once again in 2024 why it’s one of the Algarve’s shining gems. For property owners, the combination of strong tourism demand, rising property values and shifting traveller trends makes it a perfect place to grow or start your holiday rental investment. With careful planning and strategic upgrades, 2025 promises even more success.
