Palmela Property Prices, Rents & Rental Yields

About Palmela

Palmela in Setúbal district combines hilltop heritage, vineyard landscapes and easy access across the peninsula, giving the city a distinct setting within Portugal’s southern commuter belt. Its mix of historic character and everyday residential appeal keeps it firmly on the radar for apartment investors.

August 2026 brings the clearest signal this month: prices have eased, but the income picture has not kept pace. The average apartment sale price is €329,000, down 2.4% month on month, while the average rent has slipped to €1,100, down 6.4%. That combination leaves the monthly yield at 4.79%, a reminder that valuation and rental growth are moving at different speeds.

Year on year, the market still shows a stronger underlying climb. The average sale price is up 16.3%, the average rent is up 10.0%, and the average price per square metre now stands at €2,790, up 8.4%. For investors, the tension is straightforward: Palmela’s apartments have continued to reprice over the past year, yet August’s softer monthly figures suggest the return equation is becoming more sensitive to short-term movements in rents and acquisition costs.