House Rents in Portugal Surge by 9.1%

Renting a home in Portugal’s major cities, including Lisbon and Porto, has become pricier, with a notable 9.1% increase in house rents.

Renting a home has taken a turn for the pricier in nearly every major city across the landscape, with Lisbon and Porto leading the charge. The rental prices have surged by a staggering 9.1% in July compared to the same month last year, according to the idealista price index. By the end of July 2024, the median cost of renting a house reached an eye-watering 16.3 euros per square meter (euros/m2).

When we delve into the quarterly variations, we find that the increase in rental prices stands at 1.6%. A closer examination of the 14 district capitals reveals a rather alarming trend: nearly all cities have seen rental prices climb within just a year. Coimbra, Viseu, and Faro have experienced the most significant hikes, with rents soaring by 18.3%, 14.3%, and 13.7%, respectively. Porto isn't far behind, with a 12.3% increase, followed closely by Braga (11.9%), Castelo Branco (11%), Setúbal (8.4%), Lisbon (8.1%), Leiria (7.6%), Funchal (5.2%), Aveiro (4.4%), and Santarém (4.2%).

Interestingly, not all cities are riding this wave of rising rents; Évora and Viana do Castelo have seen a slight dip, with rents falling by 3% and 1.5%, respectively.

Lisbon continues to reign supreme as the most expensive city for renting a home, with a jaw-dropping rate of 21.7 euros/m2. Porto and Funchal follow suit, with prices at 17.4 euros/m2 and 14.1 euros/m2, respectively. The list continues with Faro (12.7 euros/m2), Setúbal (11.9 euros/m2), Aveiro (11.7 euros/m2), Évora (11.3 euros/m2), and Coimbra (11.2 euros/m2).

On the flip side, if you're on the hunt for a more budget-friendly option, look no further than Castelo Branco (6.5 euros/m2), Viseu (7.3 euros/m2), Viana do Castelo (8.1 euros/m2), Leiria (8.2 euros/m2), Santarém (8.3 euros/m2), and Braga (9.1 euros/m2). In a world where renting a home feels like a game of Monopoly gone wrong, these cities might just be your saving grace.