Viana do Castelo tops Portugal’s rental market with a 16.1% annual increase in August, according to Idealista. Discover how skyrocketing rent prices in this district capital impact tenants and the broader Portuguese real estate market.
Portugal’s Real Estate Rent Prices: Viana do Castelo Leads the Surge
The Portuguese rental market is witnessing significant growth, especially in several key district capitals, according to the latest data from Idealista’s price index. While rental prices nationwide grew by a modest 3.3% year-on-year in August, certain cities and districts saw much steeper increases—putting further pressure on tenants and highlighting shifting dynamics in Portugal’s real estate sector.
Viana do Castelo: The Highest Rent Price Increase
Viana do Castelo stands out in 2025 as the district capital with the largest rent price hike—a staggering 16.1% increase compared to August of the previous year. This surge underscores Viana’s growing appeal and the rising demand for housing in the region.
How Do Other District Capitals Compare?
The strong upward trend in Viana is mirrored in several other Portuguese cities:
- Viseu: +13.6%
- Leiria: +12%
- Santarém: +10.3%
- Coimbra: +10%
- Castelo Branco: +8.6%
- Setúbal: +7.3%
- Braga: +6%
- Funchal: +5.8%
- Aveiro: +3.9%
- Lisbon: +2.1%
- Porto: +1.6%
- Évora: +1.5%
Lisbon Remains the Most Expensive City
Despite a more modest annual growth (+2.1%), Lisbon continues to be the most expensive rental market in Portugal, with a cost of 22.2 euros/m². Porto (17.7 €/m²) and Funchal (15.1 €/m²) also command high rents, rounding out the country’s top three.
Other notable cities by price per square meter:
- Setúbal: 12.9 €/m²
- Coimbra: 12.4 €/m²
- Aveiro: 11.9 €/m²
- Évora: 11.7 €/m²
- Braga: 9.8 €/m²
- Viana do Castelo: 9.5 €/m²
The most affordable rental cities are:
- Castelo Branco: 7 €/m²
- Viseu: 8 €/m²
- Leiria: 9.2 €/m²
- Santarém: 9.2 €/m²
District View: Where Are Rents Rising Fastest?
The rental situation is much the same at the district level, but with even more dramatic hikes:
- Vila Real: +34.7%
- Castelo Branco: +26.1%
- Portalegre: +18.5%
- Viana do Castelo: +16.7%
- Viseu: +12.8%
- Faro: +10.4%
- Madeira Island: +10%
- Coimbra: +9.5%
- Santarém: +9%
- Setúbal: +7%
Most expensive districts to rent in Portugal:
- Lisbon: 20.5 €/m²
- Faro: 16.1 €/m²
- Porto: 15.9 €/m²
- Madeira Island: 15 €/m²
- Setúbal: 13.9 €/m²
Most affordable:
- Portalegre: 7.2 €/m²
- Viseu: 7.9 €/m²
- Castelo Branco: 8.6 €/m²
- Vila Real: 8.6 €/m²
- Santarém: 8.9 €/m²
Renters Face New Challenges as Supply Tightens
With rent increases outpacing the national average in a wide range of regions and capitals, tenants are feeling the pressure. Rapid annual growth in key cities and districts means tenants need to be even more proactive and vigilant when searching for rentals, especially in high-demand areas.
Methodology Explained
The Idealista price index analyzes listing prices per square meter for both apartments and single-family homes. It excludes atypical listings and outdated ads, using only current, market-relevant data to calculate median rent values.
Key Takeaways for Portugal’s Rental Market:
- Viana do Castelo leads in rent price growth (+16.1%).
- Lisbon remains Portugal’s most expensive city for renters at 22.2 €/m².
- Dramatic rent increases also seen in Vila Real, Castelo Branco, and Portalegre.
- Budget-friendly rentals can still be found in Castelo Branco and Viseu.
Whether you are a tenant or investor, staying informed of Portugal’s dynamic rental landscape is more important than ever. For real-time rental updates, keep following the latest market insights.
