Surge in Rental Demand Raises Prices in Portugal

At the beginning of 2024, the cost of renting a house in Portugal slowed down, with rents becoming more expensive across all sub-regions, according to Portugal’s National Institute of Statistics.

Despite the scarcity of affordable housing, the rental market remains dynamic. Data from the Instituto Nacional de Estatística (INE), released this week, shows that 25,472 new rental contracts were signed at the beginning of 2024, marking a 0.9% increase compared to the same period last year. However, due to the lack of available stock, homes are being rented at higher prices: rents rose by 10.5% during this period, reaching 7.46 euros per square meter (euros/m2).

INE highlighted an “increase in rental activity” in Portugal. In the first quarter of 2024, the number of new rental contracts registered was 25,472, a 0.9% increase from the 25,245 contracts observed in the same quarter of 2023. Additionally, more houses were rented than at the end of 2023, with a quarterly increase of 7.8%.

Increased rental activity in Portugal at the start of 2024, with a slowdown in rent increases.

This higher demand for rental properties, amidst a shortage of affordable options, led to a new rise in prices, albeit at a slower pace. “In the first quarter of 2024, the median rent of the 25,472 new rental contracts for family accommodation in Portugal reached 7.46 euros/m2,” INE noted in the bulletin published on Thursday, June 27th, which included provisional data for early 2024.

This figure represents a year-on-year growth of 10.5%, lower than the 11.6% observed in the previous quarter, indicating that while rents continued to rise, the pace slowed. Compared to the previous quarter, there was a 3.2% drop in rental prices.

Disclaimer: The views expressed above are based on industry reports and related news stories and are for informational purposes only . SSIL does not guarantee the accuracy, legality, completeness, reliability of the information and or for that of subsequent links and shall not be held responsible for any action taken based on the published information.