Co-living: The new housing trend that is transforming the real estate market in Portugal

In recent years, the concept of co-living - or shared housing - has been gaining momentum in several European capitals. In Portugal, this trend is now beginning to stand out as an innovative and highly profitable solution for investors, especially in cities with a high demand for flexible and well-located accommodation. The co-living model combines convenience, community and profitability, positioning itself as one of the most promising forms of investment in the residential sector.

What is co-living and why is it growing?

Co-living is a form of shared housing where residents have private rooms (usually furnished) and share common spaces such as kitchens, living rooms, laundry rooms and sometimes coworking areas. It is especially popular with:

• Young professionals
• Digital nomads
• International students
• Temporary expats

The growth of this model is driven by changes in work dynamics, global mobility and the shortage of affordable housing in urban centers.

Corporate co-living: a response to the new needs of companies

In addition to traditional co-living, corporate co-living is also growing - housing solutions aimed at companies that need to house temporary employees.

This model offers benefits such as:

• Cost savings compared to extended hotel stays
• Contractual flexibility
• Environments prepared for teleworking

Multinational companies, startups and technological research centers are the main promoters of this trend in cities like Lisbon, Porto and Coimbra.

Advantages for real estate investors

Greater profitability per square meter: Unlike a traditional lease, co-living allows several units to be rented in the same property.

• Lower risk of vacancy: High demand guarantees a high occupancy rate.
• Centralized management: The operation is often managed by specialized companies, freeing the investor from operational tasks.
• Adaptation to various profiles: Students, professionals and freelancers are looking for this type of solution, which broadens the target market.

Most promising locations in Portugal

The best opportunities for co-living are in urban centers with high demand and a shortage of housing supply.

• Lisbon: High demand from digital nomads and students.
• Porto: Growth of start-ups and universities, attracting young professionals.
• Braga and Coimbra: Ideal university cities for student co-living models.
• Setúbal and Cascais: Good seasonal demand and close to Lisbon.

What to consider before investing in co-living

• Licensing and legislation: Check municipal and collective housing regulations.
• Property profile: Central location, typology T3 or higher, with generous common areas.
• Operational management: Consider hiring companies specializing in co-living management.
• Contractual flexibility: Invest in medium-term contracts (3-12 months) that increase turnover and profitability.

Co-living - in both traditional and corporate formats - represents a modern response to new housing requirements. For investors, it is a model with high profitability, low risk and great potential for expansion in Portugal. With the market changing, investing in innovative solutions is essential to guarantee a competitive real estate portfolio.

Do you want to invest in an innovative, high-demand model like co-living? IR Group offers you complete support, from analyzing the property to managing the operation. Turn trends into profitability - talk to us.