Portugal’s rent prices could increase by 2.25% in 2026, based on the latest inflation estimate from the National Statistics Institute (INE). Discover what this means for tenants and landlords, and stay updated on the latest Portugal’s residential rent price trends.
Portugal’s Rent Prices Set to Increase by 2.25% in 2026: Key Trends and What They Mean
Portugal’s residential rental market is expected to see a 2.25% rent increase in 2026, according to the August flash inflation estimate released by the National Statistics Institute (INE). This projection affects tenants and landlords nationwide, providing clarity for budgeting and investment decisions in the year ahead.
Rent Increases Tied to Inflation
Under the New Urban Lease Regime (NRAU), annual rent adjustments are based on inflation, specifically the average variation of the Consumer Price Index (CPI), excluding housing costs, over the preceding 12 months. According to INE, this index averaged 2.25% in the year ending August 2025. This figure currently serves as the anticipated coefficient for next year’s rent updates.
Key details to keep in mind:
- The official rent adjustment rate for 2026 will be set after INE publishes its final August CPI data on 10 September 2025.
- The confirmed rent update coefficient will then be published in the Portuguese Official Gazette by 30 October 2025.
Timeline for Rent Adjustments
Once the final rent adjustment rate is published:
- Landlords can notify tenants of upcoming rent increases.
- Any increase can only take effect 30 days after notice has been given to the tenant.
Both urban and rural residential leases are subject to these rules.
How Does 2026 Compare to Previous Years?
The expected 2.25% increase for 2026 marks a modest acceleration from last year, when rents rose by 2.16% in 2025. This reflects ongoing, though controlled, inflation in Portugal’s rental housing sector.
What Does This Mean for Tenants and Landlords?
- Tenants:
Should plan for a moderate increase in rent starting in 2026. Reviewing lease terms and understanding your rights around notice periods and increases is recommended. - Landlords:
Need to await official confirmation in the Official Gazette before communicating increases. Proper notice procedures must be followed to comply with Portuguese tenancy law.
Stay Updated on Portugal’s Rental Market
- The final rent increase for 2026 will be confirmed by mid-September 2025, taking effect the following year.
- For up-to-date information, keep an eye on INE releases and official government announcements.
