Lisbon Rental Prices Hit €22.2/m², New Data Reveals City-by-City Costs for Investors
A comprehensive analysis of Portugal's rental market has revealed that housing rents continued to climb in August, rising 3.3% year-over-year to an average national cost of €16.8 per square meter. The data, sourced from the Idealista property price index, indicates that while the rate of increase has slowed compared to previous periods, the upward trend remains consistent across all major urban centers in the country. The report provides a detailed breakdown of rental costs across 13 district capitals, offering a granular view of the market for tenants and investors.
The source of the data is the Idealista price index, a widely recognized benchmark for property market analysis in Southern Europe. The methodology involves tracking asking prices for rental properties listed on their portal, with the August 2025 report analyzing a representative sample of listings to determine average costs and year-over-year changes. This statistical approach allows for a consistent and comparable overview of market dynamics across different regions.
According to the findings, Lisbon remains the most expensive city for renters in Portugal, with average prices now at €22.2 per square meter. Porto holds the second position at €17.7 per square meter, followed by Funchal at €15.1 per square meter. While these major hubs saw relatively modest annual growth of 2.1% and 1.6% respectively, other regional cities experienced much sharper increases. The most significant price hikes were observed in Viana do Castelo, where rents surged by 16.1%, and Viseu, which saw a 13.6% increase.
The geographic breakdown highlights a broadening of rental price pressure beyond the main metropolitan areas. Cities such as Leiria (12% increase), Santarém (10.3%), and Coimbra also posted strong double-digit growth. In contrast, the most affordable rental markets were identified as Castelo Branco (€7/m2), Viseu (€8/m2), and Leiria (€9.2/m2), though the latter two have experienced significant recent appreciation. The data shows a clear nationwide trend of rising rental costs, affecting a wide range of urban areas.
Industry experts suggest these trends are a direct result of the ongoing housing supply shortage coupled with sustained demand from both domestic and international tenants. A fictional housing economist, Dr. Ana Moreira, commented, 'The Idealista report confirms that the structural imbalance in the rental market is not limited to Lisbon and Porto. The strong price growth in secondary cities indicates that demand is spilling over into new areas as people seek more affordable living options. For investors, this data may signal emerging opportunities for buy-to-let investments in these high-growth regional markets.' The government has acknowledged the housing crisis, but market observers believe that significant new housing supply is needed to meaningfully impact price trajectories. Stay informed on Lisbon property market developments at realestate-lisbon.com.
