Rents in Lisbon soar by 8.6%; new leases grow by 2.1%

The median rent of new leases carried out in the second quarter of 2022 in Portugal grew 8.6 percent compared to the same period last year, reaching 6.55 euros per square metre, the Government office for national statistics of Portugal said.

According to the National Statistics Institute (INE), in the 2nd quarter of 2022, the median house rental value for the 21 005 new lease agreements in Portugal was 6.55 €/m2. This value represents a year-on-year growth rate of +8.6 percent, higher than the one observed in the previous quarter (+6.4 percent). The number of new lease agreements also increased compared to the same period in the previous year.

Figure 1. YoY growth rates of median house rental value per m2 and number of new lease agreements of dwellings, Portugal, Q1 2020 to Q2 2022. Credit: Instituto Nacional de Estatística.

Compared to the Q2 of 2021, the median house rental value increased in all NUTS 3 sub-regions. The highest values were scored in the Metropolitan Area of Lisbon (9.95 €/m2), Algarve (7.41 €/m2), Autonomous Region of Madeira (7.35 €/m2) and the Metropolitan Area of Porto (7.06 €/m2) and, with the exception of Algarve, these sub-regions also showed year-on-year increases higher than most of other regions across the country.

The new lease contracts of Q2 2022 totalling 21,005 represent an increase of +2.1 percent compared to the second quarter of 2021 (with 20,568 new leases), “noting, however, the strong deceleration compared to the behaviour seen in the quarter previous year”.

Credit: Instituto Nacional de Estatística.

In Q2 2022, there was a YoY increase in the median house rental value in 23 of the 24 municipalities with more than 100 thousand inhabitants. The municipalities with the highest median house rental values of the new lease agreements were Cascais (12.78 €/m2 ), Lisbon (12.61 €/m2 ), Oeiras (11.00 €/m2 ) and Porto (10.15 €/m2 ) - registered a YoY growth higher than the country (+19.6 percent, +14.6 percent, +11.3 percent and +15.7 percent, respectively).

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