Rental prices in Portugal are experiencing a decrease or slowdown
House Rental Prices in Portugal: A Regional Analysis
The rental market in Portugal is witnessing a significant surge, with Lisbon leading the way as the most expensive city for housing[1][2][3]. As of early 2025, the median rent across the country stands at €8.22 per square meter (euros/m²), marking a 10% year-on-year rise[2].
Lisbon, Portugal's economic, social, and touristic hub, takes the lead with the highest rents, averaging approximately €22.2/m²[3][5]. This figure is more than double the national average and significantly higher than other municipalities. The city's high demand, driven by tourism and economic factors, has contributed to its status as the priciest rental market[4].
However, many other Portuguese cities and municipalities remain affordable compared to Lisbon. For instance, Castelo Branco offers the lowest rents at about €6.8/m², while Santa Maria da Feira, Viseu, and Braga have rental rates of €7.1/m², €8/m², and €9.8/m² respectively[3][5]. This reveals a substantial rental price gap between Lisbon and other regions[1].
Porto ranks second in rental prices, with a rate of €17.7/m²[1], followed closely by Funchal, the third most expensive city, with a rental rate of €14.7/m²[1]. Other cities, such as Coimbra, Evoira, Santarem, Setubal, Aveiro, and Viana do Castelo, also experienced rental price increases, ranging from 1.4% to 15.4%[1].
Coimbra and Viseu saw substantial rental increases of 13% and 11% respectively, while Viana do Castelo recorded the most significant rental increase of 15.4%[1]. Rental prices in Setubal rose by 9.5% in the year ending in July[1]. Despite a nationwide slowdown in rental increases, they continue to rise in all major cities analyzed[1].
Despite Lisbon's higher rents, the cost of living there remains lower than in major global cities like New York, Paris, or London, by significant margins[4]. This data shows significant regional disparities and ongoing rental price inflation in Portugal, with Lisbon firmly at the top in terms of cost[1].
Key Points:
- Median rental prices across Portugal increased by about 10% year-over-year in Q1 2025, with a median rent of €8.22/m² nationally[2].
- Lisbon leads with the highest rents (~€22.2/m²) in Q2 2025, roughly 2.7 times the national median rent[3][5].
- Many other cities offer rents below €10/m², with Castelo Branco at the lowest (€6.8/m²)[3].
- Lisbon, Porto, and Algarve remain the most expensive regions, reflecting demand driven by tourism and economic factors[1][4].
- Despite increases and Lisbon’s status as most expensive city, living costs there remain lower than other major international capitals[4].
[1] Idealista Price Index, Q2 2025 [2] Statista, Q1 2025 [3] Numbeo, Q2 2025 [4] Numbeo, Q2 2025 (Living Cost Comparison) [5] Numbeo, Q2 2025 (Housing Index)
- Portugal's housing-market, particularly in cities like Lisbon and Porto, attracts considerable interest for real-estate investing due to their rising rents and ongoing rental price inflation.
- In the realm of finance, portfolio diversification could be achieved by considering investing in the housing-market of regions in Portugal outside Lisbon, where rental prices are relatively lower, such as Castelo Branco, Viseu, or Braga.
