Rental Prices in Portugal May Rise by 2.25% in 2026
The National Statistics Institute (INE) released a flash estimate today indicating that rental values in Portugal could see an increase of 2.25% in the year 2026. This projection is based on inflation data for August. The calculation for the annual rent update coefficient is derived from the average variation of the consumer price index, excluding housing, over the preceding 12 months. This figure, currently at 2.25%, is the basis for adjustments under the Novo Regime do Arrendamento Urbano (NRAU), Portugal's legal framework for urban leases.
The data from INE provides the preliminary basis for the adjustment, but the definitive value will only be established on September 10th. On that date, the INE is scheduled to publish the final Consumer Price Index (CPI) data for August 2025. Following its confirmation, the official coefficient must be published in the Diário da República, the official government gazette, no later than October 30th. This procedure applies to rental contracts in both urban and rural settings across the country.
Property owners are legally required to wait for this official publication before they can formally notify their tenants of any rent increase. The updated rental value can only take effect 30 days after the tenant has been served with the notice. This legal process ensures a standardized and transparent method for annual rent adjustments, providing a clear timeline for both landlords and tenants to prepare for changes in contract terms.
The projected rate for 2026 indicates an acceleration in rent increases compared to the previous year. The coefficient applied to rents for 2025 was 2.16%. This upward trend reflects broader inflationary movements within the national economy. The annual adjustment mechanism is designed to allow rental incomes to keep pace with inflation, thereby protecting the real value of property yields for landlords while formalizing the process for tenants.
Market observers will be watching closely for the definitive INE data in September, as it will finalize the financial planning for a significant portion of the Portuguese population and for property investors. The outcome will directly influence housing costs and investment returns in the real estate sector for the upcoming year.
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