Housing Rental Prices in Portugal Surge 4.6% Annually: A Deep Dive into the Market Trend

“Housing Rental Prices in Portugal” have been a central talking point for realtors, homeowners, and prospective tenants alike, particularly given the significant upswing witnessed recently. As per the latest data from the Instituto Nacional de Estatística (INE), rents have surged by 4.6% on a year-on-year basis in June, marking the steepest climb since the end of 2014.

The Unprecedented Rise in Rental Prices

This broad-based rise is experienced in all regions across the country, underscoring a wider market phenomenon where supply struggles to meet demand. The Autonomous Region of Madeira, for instance, reported the most dramatic increase at 5.1%.

As the monthly report from the INE highlights, there has been a 0.4% monthly variation in the average housing rental prices per square meter. This is consistent with the figures from the previous month. Interestingly, the northern region recorded the highest monthly increase (0.5%), while no regions reported any negative variation.

If you’re interested in buying property in the country, our complete guide might serve as a handy resource.

Beautiful house in Portugal against a blue sky.

Government Monitoring the Housing Situation

In the face of escalating “Housing Rental Prices in Portugal”, the government’s attention is predictably drawn. The government sets an annual coefficient to regulate automatic rent increases, and given the current trends, it’s likely to be historically high. However, the government has also implemented measures to restrict increases, setting a 2% cap this year.

To get more insight into this, check out our article on rental contract increases in Portugal.

The government is keeping a close watch on the situation, awaiting definitive data from the INE due in September, as reported by Público and ECO.

Implications for Tenants and Homeowners

The current trends in “Housing Rental Prices in Portugal” have important implications for both tenants and homeowners. For renters, higher prices may lead to affordability issues, particularly in regions with significant increases like Madeira.

Homeowners and property investors, on the other hand, may see this as an opportunity to maximize rental income. However, the market dynamics can change rapidly, so thorough research and understanding of the local property market is crucial.

Looking for more information on the real estate market in Portugal? We’ve seen a rise in homes for sale in Portugal in Q2 2023.


As the “Housing Rental Prices in Portugal” continue to rise, it’s clear that the Portuguese housing market is experiencing significant shifts. Tenants, property owners, and investors must keep an eye on these trends and adapt their strategies accordingly. And for those who are looking to relocate to Portugal, resources like this guide to renting an apartment in Lisbon could prove to be invaluable.


Happy girl with a box in her hand, moving into a new apartment.


1. How much have housing rental prices in Portugal increased in the past year?

Housing rental prices in Portugal have increased by 4.6% on an annual basis as of June, according to data from the Instituto Nacional de Estatística (INE).

2. Which region in Portugal saw the greatest increase in housing rental prices?

The Autonomous Region of Madeira reported the most dramatic increase in housing rental prices at 5.1%.

3. How has the Portuguese government responded to the rise in housing rental prices?

The Portuguese government has set a 2% cap on rental increases for the current year, indicating its proactive stance in addressing this issue.

4. What are the implications of rising housing rental prices for tenants in Portugal?

Rising housing rental prices may pose affordability challenges for tenants, particularly in regions like Madeira where increases have been more pronounced.

5. Where can I find more information about housing rental prices in Portugal?

More information about housing rental prices in Portugal can be found in articles on the Casavizer realty website.