Portugal's increase in property rental rates moderates
In the latest housing market analysis, Portugal's rental prices have shown a steady increase, with Lisbon and Porto leading the pack as the most expensive cities for house rentals.
According to data from various sources, the median cost of renting a house in Portugal reached 16.7 euros per square meter (euros/m2) at the end of June 2023. This figure represents a 3.5% increase compared to the same month in 2022.
Lisbon, the country's capital, remains the most expensive city for house rentals, with a median cost of 22.2 euros/m2. Porto follows closely behind with the second-highest median house rental price at 17.7 euros/m2.
In contrast, the cheapest cities for house rentals are Castelo Branco (6.8 euros/m2), Viseu (8 euros/m2), and Santarém (8.8 euros/m2). Funchal has the third-highest median house rental price at 15 euros/m2.
The trend of strong rental price growth in Portugal's major cities, which began in the early 2020s, has continued. Annual rental price increases slowed from 25.5% year-on-year in May 2023 to 14.4% in May 2024 and further down to 4.4% in May 2025, indicating a deceleration trend following the rapid rises. However, the growth has not subsided completely, with many areas still experiencing annual growth well above 10%.
Quarterly variation in house rentals rose by 1.1% in June 2023. Among 14 district capitals, house rents increased annually in 12 cities. house rental prices in Faro (12%), Setúbal (11%), Viana do Castelo (10%), Viseu (9.5%), Leiria (7.2%), Braga (6.8%), Funchal (6.4%), Évora (5.4%), Santarém (3.8%), Lisbon (3.1%) and Porto (2.7%) all saw increases compared to the same quarter in 2022.
Aveiro and In Castelo Branco are the exceptions, with house rental prices decreasing by 1.3% and 0.7% annually, respectively. Aveiro has a median house rental price of 11.6 euros/m2, while Évora has a median house rental price of 11.9 euros/m2. Braga has a median house rental price of 9.8 euros/m2, and Viana do Castelo has a median house rental price of 9.2 euros/m2.
The annual increase in rental prices softened compared to May (+4.4%), indicating a potential slowdown in the housing market growth. However, the exact **annual and quarterly percentage rental price changes for June 2021 by city are not specifically documented in your search results.** For more specific historical quarterly rental change data for June 2021, consulting the Portuguese National Statistics Institute (INE) or specialized real estate analytics platforms that archive historical rent indices would be recommended.
- In the realm of investing, the real-estate sector in Portugal has demonstrated significant growth, as the annual increase in rental prices for houses has continued unabated, despite a deceleration trend following rapid rises.
- Interestingly, while Portugal's overall rental prices are showing an upward trend, some cities such as Aveiro and Castelo Branco have seen a decrease in house rental prices on an annual basis.
- For those interested in news related to finance and real-estate, it's worth noting that the Portuguese housing market, particularly in cities like Lisbon and Porto, has seen a steady increase in house rental prices, with Lisbon being the most expensive city for house rentals as of June 2023.