Discover the upcoming rent adjustments in Portugal’s real estate sector. INE data forecasts a 2.2% rise in rents for 2026, driven by inflation rates. Learn what this means for tenants and landlords.
Portugal Real Estate Rentals: What to Expect from the 2026 Rent Increase
Portugal’s real estate rental market is poised for an uptick in 2026, with rents expected to increase by as much as 2.2%. This adjustment is based on the latest figures released by the National Institute of Statistics (INE), reflecting the average inflation rate for the last 12 months (excluding housing) as of July 2024.
Why Are Rents Increasing in Portugal?
The main driver for the rent increase is inflation. According to the INE, the inflation rate excluding housing stood at 2.16% in July 2024. This figure is used as a reference to calculate annual rent adjustments for urban leases across Portugal.
It’s important to note that the official rent adjustment coefficient will be based on the August 2024 inflation figure, to be published by INE in September. However, experts say that any deviation from the current 2.16% is likely to be minimal due to the indicator’s structural inertia. João Queiroz, an economist at Banco Carregosa, pointed out that the rate typically changes little from month to month.
Who Will Be Affected by the 2026 Rent Adjustment?
The adjustment will apply to all urban rental contracts that have been in effect for more than one year. This includes long-term leases, such as those established before 1990 that have not been transferred to the New Urban Leasing Regime (NRAU), unless the contract stipulates a different mechanism for rent increases.
Crucially, while the law provides a guideline for inflation-linked adjustments, implementing the increase is not mandatory. Landlords and tenants can negotiate alternative terms, as long as these are clearly stated in the rental agreement.
How Is the Rent Adjustment Calculated?
- Reference Index: The rent adjustment is pegged to the 12-month average inflation rate without housing.
- Adjustment Rate: For 2026, this is projected at close to 2.2%.
- Official Publication: The exact rate is confirmed each September, based on August data from INE.
Key Trends in the Portugal Rental Market
- Slowing Inflation: The current inflation rate is lower than in previous years, indicating a slowdown in the pace of rent increases.
- Market Stability: The moderate adjustment suggests relative stability in the Portuguese rental market for 2026.
What Should Landlords and Tenants Do?
- Review Lease Agreements: Ensure any rent adjustment clauses are clear and comply with current regulations.
- Stay Informed: Keep an eye out for the INE’s official announcement in September to confirm the final adjustment rate.
- Negotiate Where Possible: Remember, rent adjustments are negotiable unless the lease mandates a specific formula.
With rents forecasted to rise by around 2.2% in 2026, both landlords and tenants in Portugal’s real estate rental market should prepare for moderate changes. While the rent adjustment is based on inflation, the decision ultimately depends on agreements between parties. Staying informed and proactive will help you navigate upcoming changes in the Portuguese rental sector.
