Lisbon Leads as Portuguese Rental Prices Climb 4.1% in September
Rental prices in Portugal saw a nationwide increase of 4.1% in September 2025 compared to the same month last year, according to the latest price index report from the property portal Idealista. The data, released on October 2, confirms a sustained upward trend in the rental market, with the national median cost reaching €16.9 per square meter.
The comprehensive study draws from Idealista's extensive database of property listings across Portugal, analyzing the evolution of asking prices for rental properties. The methodology involves calculating the median cost per square meter to provide a representative snapshot of the market, tracking changes across regions, districts, and cities to identify key trends.
The report highlights that Lisbon continues to be the most expensive city to rent a home in the country, with a median price of €22.5 per square meter. This is followed by Porto, where prices stand at €18.1 per square meter, and Funchal, which has reached €15.4 per square meter. The entire Lisbon Metropolitan Area now averages €20 per square meter, making it the most costly region for tenants.
Geographically, the price increases varied significantly. While Lisbon's annual price growth was a more moderate 1.8%, other areas experienced much sharper rises. The district of Castelo Branco saw the most dramatic annual surge, with prices soaring by 27.5%. Other notable increases at the district level were recorded in Vila Real (23%) and Beja (17.9%). Among district capitals, Viana do Castelo led the increases with a 23.8% jump.
A regional analysis shows the Alentejo leading the price growth with a 15.3% year-on-year increase, followed by the Center region (12%) and the Algarve (10.1%). The North of Portugal (5.5%) and the Lisbon Metropolitan Area (3.1%) experienced more subdued, yet still positive, growth. The Azores had the smallest annual change, with an increase of just 2.3%.
In terms of market segments, the report indicates that demand remains high for all property types, from small apartments (T0 and T1) in city centers to larger family homes in suburban areas. The data reflects a persistent structural imbalance, where the available housing supply has not kept pace with growing demand from both domestic and international tenants.
Need Expert Guidance?
Get personalized insights from verified real estate professionals, lawyers, architects, and more.
Industry experts from the Portuguese Association of Real Estate Agents (APEMIP) commented on the findings, noting that the rental market's behavior is a direct consequence of high interest rates impacting property purchases. 'As long as acquiring property remains challenging for many families, the pressure on the rental market will not ease,' stated a spokesperson. 'The data from Idealista confirms that a national strategy for increasing the supply of affordable rental housing is more urgent than ever.'
The government has acknowledged the housing crisis, but market observers are waiting for announced policies to translate into tangible results on the ground. The National Institute of Statistics (INE) is expected to release its official housing price data for the third quarter later this month, which will provide further context to the trends identified by private platforms like Idealista.
Historically, rental prices in Portugal have been on a steep incline for the past decade, driven by the tourism boom, foreign investment, and an influx of expatriates. The current data suggests that despite economic headwinds, this trend is continuing, posing significant affordability challenges for local residents.
The Idealista report provides a crucial barometer for the health and direction of the Portuguese rental market. Future reports will be watched closely to see if the pace of price increases moderates or if the affordability crisis deepens across the country.
Stay informed on Lisbon property market developments at realestate-lisbon.com.