Idealista Study Reveals 81% of Portuguese Rental Market Falls Within Government's 'Moderate Rent' Bracket
A recent statistical analysis by the real estate platform Idealista has provided a detailed snapshot of Portugal's rental market in the context of the government's new “rendas moderadas” (moderate rents) policy. The term, defined by Luís Montenegro's administration to include monthly rents between €400 and €2,300, initially caused significant public discussion. The Idealista study, based on data from the third quarter of 2025, analyzed over 43,000 rental listings across 79 municipalities and found that a commanding 81% of the total national rental stock fits within this price range. The highest concentration of these properties is located in the major metropolitan areas of Lisbon, Porto, Cascais, Vila Nova de Gaia, and Matosinhos.
The source of this data, Idealista, is a leading real estate portal in Southern Europe, and its methodology for this analysis involved assessing active rental listings in municipalities with a representative sample size of 50 or more properties. The government's policy aims to incentivize landlords to offer more stable, long-term leases by providing a substantial tax reduction. Specifically, landlords who sign rental contracts for a minimum of three years within the moderate rent bracket will see their personal income tax (IRS) rate on rental income drop from 25% to 10%. This measure is designed to increase the available housing supply and stabilize rental prices. For a deeper dive into such trends, our Real Estate Market Insights Blog is a valuable resource.
The geographic breakdown of the data reveals significant regional variations. In the municipality of Lisbon, 73% of the rental stock is classified as moderate, while the city of Porto shows an even higher proportion at 91%. Vila Nova de Gaia follows closely with 89%. An interesting outlier is Figueira da Foz, where 100% of the 233 homes available for rent fall within the moderate rent definition. This suggests that the government's incentive program will have a widespread impact across many parts of the country. However, the luxury segment, defined as properties with rents exceeding €2,300 per month, remains prominent in certain key markets and is excluded from these tax benefits.
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The analysis of the premium market shows that Cascais leads with 53% of its rental supply priced above the €2,300 threshold, making it the only municipality where premium listings outnumber moderate ones. Other municipalities with a strong premium presence include Loulé (44%), Albufeira (31%), Lisbon (27%), Oeiras (25%), Funchal (25%), Faro (24%), and Sintra (21%). Nationally, this high-end segment accounts for 19% of the total rental supply. This bifurcation of the market is a critical factor for investors, and those interested in the luxury sector may find our page on luxury properties agents useful.
At the other end of the spectrum, the study highlights a severe shortage of low-cost housing. Properties available for rent at less than €400 per month constitute less than 1% of the national market. In 49 of the municipalities surveyed, including Lisbon and Porto, there was not a single listing in this price range. The municipality of Covilhã had the highest relative share of these low-cost rentals, at 15% of its local market. This data underscores the significant affordability challenges in Portugal's main urban centers. Stay informed on Lisbon property market developments at realestate-lisbon.com.