Portugal property rental prices are finally showing signs of a slowdown, according to data from idealista’s latest property price index. In November, the annual growth rate for rental prices cooled to 3.2%, a significant drop from the 5.7% increase seen in the previous month.
Despite the slowing pace, renting a home in Portugal remains expensive overall. The median rent reached €16.6 per square meter at the end of November. Most regional capitals continued to see rent increases compared to last year, with 15 out of 17 cities posting gains.
Among the biggest annual rent increases were Ponta Delgada (+15.9%), Viseu (+12.8%), Leiria and Viana do Castelo (both +10.8%), Santarém (+8.4%), and Faro (+7%). Other notable increases were seen in Coimbra (+5.7%), Setúbal (+5.1%), and Lisbon (+2%). However, a few cities saw prices hold steady or even drop, such as Évora (+0.3%), Castelo Branco (–0.9%), and Bragança (–5.8%).
Lisbon remains by far the most expensive city to rent in, at €22.4 per square meter, followed by Porto (€17.8/m2), Funchal (€16/m2), and Faro (€14.6/m2). At the more affordable end, Bragança is the cheapest capital for tenants, at just €6/m2, with Vila Real (€7.4/m2) and Viseu (€7.9/m2) also offering more budget-friendly options.
While the surge in Portugal property rental prices is decelerating, average rents remain high—leaving many tenants still feeling the pressure, especially in large cities and tourist-heavy regions.
