Stable Rental Market in Portugal
Portugal's rental market has achieved a greater equilibrium between demand and supply, with rental prices remaining steady in February compared to the previous month. This marks the second consecutive month of unchanged median rental costs at €15.8 per square meter, according to the Idealista price index. This stabilisation comes shortly after the approval of the Mais Habitação policy, indicating its potential impact on the market.
According to Southern Europe’s real estate classifieds operator Idealita, albeit there was a 2.8 percent quarterly increase in house rents, with an annual increase of 18.3 percent, however, rental prices experienced a decline in five district capitals during February, led by Faro (-5.5 percent), followed by Funchal (-5.1 percent), Leiria (-2.8 percent), Évora (-1.4 percent), and Aveiro (-0.9 percent). Conversely, prices remained stable in Coimbra (0.4 percent) and Porto (0.2 percent).
On the other hand, rental prices saw an uptick in Santarém (2.3 percent), Setúbal (1 percent), and Lisbon (0.6 percent). Lisbon remains the most expensive city to rent an apartment, followed by Porto and Funchal. Conversely, Santarém, Leiria, and Évora are among the most economical cities for renting a home.
Lisbon retains its status as the costliest city for apartment rentals, despite rental price decreases in five district capitals.
Analysing across 18 districts and islands, rental prices in February rose in several areas including Beja, São Miguel, and Viana do Castelo. However, decreases were observed in others such as Portalegre, Castelo Branco, and Santarém.
In terms of districts, Lisbon leads in rental costs followed by Porto, while Vila Real, Portalegre, and Castelo Branco are among the most affordable.
February also saw fluctuations in rental prices across regions, with increases in the Azores and Alentejo, and decreases in Madeira and the Center. The Metropolitan Area of Lisbon, Algarve, and the North maintained stable rental prices during this period.
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