Renting a house in Portugal was 4.1% more expensive in September 2025, now averaging €16.9/m². Discover which cities and regions saw the biggest rent hikes and where Portugal’s cheapest rentals can still be found.
If you’ve been searching for rental housing in Portugal, you’ve likely noticed that prices are still climbing. According to the latest data from Idealista’s real estate price index, renting a house in Portugal in September 2025 cost 4.1% more than it did a year earlier, now averaging €16.9 per square meter. But what does this mean for renters across the country—and which cities and regions are feeling the biggest impact?
Let’s break down the latest rental price trends and see where affordability—and demand—stand as of Q3 2025.
Portugal Rental Prices: Key Highlights
- National average: €16.9/m² (September 2025)
- Annual increase: 4.1%
The upswing is broad-based, affecting every region in Portugal, but the pace of increases is far from uniform. Cities with the highest and lowest rents, as well as those with the most dramatic annual jumps, show a highly diverse rental market.
Where is Renting Most & Least Expensive?
Most Expensive Cities:
- Lisbon: €22.5/m² (still Portugal’s priciest rental market)
- Porto: €18.1/m²
- Funchal: €15.4/m²
Most Affordable Cities:
- Bragança: €7.1/m²
- Castelo Branco: €7.3/m²
- Viseu: €7.9/m²
Where Are Rents Rising Fastest?
- Viana do Castelo: 23.8% annual increase
- Bragança: 19.8% annual increase
- Viseu: 16.5% annual increase
Among Portugal’s districts, the fastest annual rises are:
- Castelo Branco: +27.5%
- Vila Real: +23.0%
- Beja: +17.9%
Rental Costs by District
- Most expensive:
- Lisbon: €20.6/m²
- Porto: €16.2/m²
- Faro: €16.1/m²
- Most affordable:
- Portalegre: €7.1/m²
Regional Trends
- Biggest increases:
- Alentejo: +15.3%
- Centro: +12%
- Algarve: +10.1%
- Most expensive region:
- Lisbon Metropolitan Area: €20/m²
- Most affordable regions:
- Azores: €10.4/m²
- Centro: €10.4/m²
Why Are Prices Rising?
The ongoing growth in rental costs is being driven by several factors:
- High demand in metropolitan areas from local and international tenants
- Limited rental housing supply in key cities and coastal regions
- Strong interest from digital nomads, expats, and students, intensifying competition for centrally located homes
What Does It Mean for Renters?
While Lisbon and Porto remain out of reach for some, notable increases in smaller cities and districts mean that affordable options may soon become rarer across Portugal. If you’re searching for a rental, it’s more important than ever to compare regions and consider up-and-coming districts.
For landlords, rising prices signal continued strong demand, especially in districts like Castelo Branco, Vila Real, and Beja, where annual growth is outpacing the national average by a large margin.
Portugal’s rental market is showing no signs of cooling, with a national average now close to €17/m² and a particularly sharp rise in traditionally affordable areas. As new rental hotspots emerge and prime urban centers maintain high prices, both tenants and investors face a rapidly evolving landscape.
