Portugal's Rental Price Growth Slows to 2.4% in July, Idealista Reports
Recent data from the property portal Idealista indicates a deceleration in the growth of residential rental prices in Portugal. The annual increase slowed to 2.4% in July 2025, a decrease from the 3.5% rate recorded in June. The median cost to rent a property in the country was reported to be €16.7 per square meter at the end of July. On a quarterly basis, the data shows a slight fall of 1% in rental values.
This national trend of moderation, however, was not uniform across the country. Prices continued to rise in all major cities included in the analysis. The most substantial annual increases were observed in Viana do Castelo, where rents surged by 15.4%, followed by Coimbra with a 13% rise, and Viseu at 11%. These figures suggest a growing rental demand in Portugal's regional capitals.
In other key cities, rental prices also trended upwards over the year. Setúbal saw a 9.5% increase, Braga 7.2%, and Évora 7%. The country's two largest cities, Lisbon and Porto, experienced more modest annual increases of 1.6% and 1.8%, respectively. Despite the slower growth rate, Lisbon remains the most expensive city in Portugal to rent a home, with an average price of €22.1 per square meter.
Following Lisbon in the cost ranking are Porto, with an average rental price of €17.7 per square meter, and Funchal, at €14.7 per square meter. Other cities with relatively high rental costs include Setúbal (€13/m2), Coimbra (€12.6/m2), and Aveiro (€11.9/m2). In contrast, the most affordable cities for renters are Castelo Branco (€7/m2), Viseu (€8.1/m2), and Santarém (€8.5/m2).
A market analyst from a leading real estate consultancy noted, "The slowdown in the national rental price index is a significant development, suggesting the market may be entering a phase of stabilization. However, the persistent price growth in major urban centers, including regional ones, indicates that demand continues to outstrip supply in key areas." The data reflects a complex market where national trends are balanced by strong local dynamics. Government housing authorities are expected to analyze these figures as they continue to formulate policies aimed at addressing housing affordability. Stay informed on Lisbon property market developments at realestate-lisbon.com.
