Lisbon Apartments: Europe’s Most Affordable Rentals

Explore why Lisbon apartments are the cheapest in Europe, as rents rise 4.3% across the continent, according to the HousingAnywhere Index.

The HousingAnywhere International Rent Index for the third quarter of 2024 reveals a rather intriguing landscape of rental prices across Europe, showcasing an overall increase of 4.3% compared to the same period last year. However, the Portuguese cities of Porto and Lisbon present a fascinating divergence from this continental trend, particularly in the realm of room prices.

While the majority of European cities have witnessed a surge in room rental costs, both Porto and Lisbon have maintained a status quo reminiscent of yesteryear. In Lisbon, the average price for a room has reached €600, reflecting the customary price inflation associated with the influx of students gearing up for the academic year. Conversely, Porto has exhibited remarkable resilience, with room rents steadfastly anchored at €450 throughout the year.

This Portuguese anomaly starkly contrasts with the situation in Amsterdam, where the average monthly rent for a room has soared to a staggering €1,000, marking a 4.6% increase from the previous year. Germany and the Netherlands emerge as the frontrunners in terms of exorbitant rental prices, closely followed by France, where a room in Paris commands an average rent of €840. In this context, cities like Budapest (€350), Valencia (€400), and Porto (€450) emerge as veritable havens for budget-conscious renters.

In the broader European context, flat prices have escalated by 4.1% year-on-year. Yet, Lisbon's narrative diverges once more, as flat prices are reportedly on a downward trajectory. HousingAnywhere's analysis indicates a fluctuation in prices, with a flat in the Portuguese capital costing €1,600 in the first quarter, rising to €1,848 in the second quarter, and subsequently dipping to €1,792. Notably, this represents a 10.4% decrease compared to the same period last year.

In Porto, the narrative is somewhat different. Flat rents have experienced an upward shift, climbing from €1,250 in the first quarter of 2024 to €1,500 in the second quarter, a figure that has remained stable into the third quarter. This translates to an 11% increase compared to the previous year. Meanwhile, Rome has emerged as the city with the highest flat rents in Europe, surpassing Amsterdam by a mere €10, with an average flat costing around €2,500. Remarkably, Rome also recorded the most significant annual increase in flat prices, soaring by 28.2%, while Amsterdam experienced a more modest rise of 10.7%.

Interestingly, Budapest stands out as the city where flats are most accessible, with an average cost of €850, according to the report disseminated by HousingAnywhere to The Portugal News. This juxtaposition of rental dynamics across Europe not only underscores the complexities of the housing market but also highlights the unique circumstances faced by renters in Portugal, where the interplay of demand and supply continues to shape the rental landscape in unexpected ways.