Portuguese Rental Price Growth Slows to 2.4% in July, Idealista Reports
The growth rate of residential rental prices in Portugal has moderated, according to the July price index released by the property portal Idealista. The national year-over-year increase in asking rents was 2.4% in July, a deceleration from the 3.5% figure reported in June. This cooling trend is linked to a decrease in rental demand, which analysts attribute to falling interest rates and other incentives that are making home purchasing more appealing. The median rent in Portugal at the end of July was €16.7 per square meter.
The data also revealed a 1% decrease in rental prices when measured on a quarterly basis. Despite the national slowdown, rental prices continued to climb in several major cities. The most significant annual increases were recorded in Viana do Castelo (15.4%), Coimbra (13%), and Viseu (11%). Other cities that saw notable year-over-year rent hikes include Setúbal (9.5%), Braga (7.2%), and Évora (7%).
In the country's two largest cities, the rental market showed more stability. Lisbon registered a modest annual increase of 1.6%, while Porto saw rents rise by 1.8%. However, Lisbon continues to be the most expensive city in Portugal for tenants, with an average rental cost of €22.1 per square meter. Porto follows at €17.7 per square meter, with Funchal in third place at €14.7 per square meter. On the other end of the spectrum, the most affordable cities for renting were Castelo Branco (€7/m2), Viseu (€8.1/m2), and Santarém (€8.5/m2).
An analysis of the districts and islands shows that Lisbon is the most expensive district for renters, with a median price of €20.3 per square meter. It is followed by the districts of Porto (€15.9/m2) and Faro (€15.8/m2). The most substantial rental price increases at the district level were seen in Vila Real (36%), Viana do Castelo (18.6%), and Castelo Branco (18.1%). The district of Lisbon saw a 1.7% increase over the year.
All regions across the country reported a rise in rental prices in July. The Autonomous Region of the Azores led with a 16.3% increase, followed by the Centro region with 12.2% growth. The Lisbon Metropolitan Area, the most expensive region to rent a home at €19.6 per square meter, saw a 1.9% increase. The Algarve and the Norte region followed as the next most expensive areas. According to Idealista, its price index is compiled by analyzing the asking prices of properties listed on its website, with statistical methods applied to exclude atypical listings and ensure data accuracy. Stay informed on Lisbon property market developments at realestate-lisbon.com.
