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Portugal’s Rental Market: Trends and Opportunities Since 2024
- Antonio Pinheiro
- Sep 2
- 2 min read
1. Supply Growth Meets Slowing Price Increases
By the end of 2024, rental listings across Portugal surged dramatically—up by 59% year-over-year. Cities like Porto (+63%), Lisbon (+72%), and Braga (+80%) saw major increases, while Aveiro led with a staggering +111%.
However, the pace of rent increases began cooling in 2025. In February, year-on-year rent growth slowed to 5.9%, down from approximately 7% during much of 2024.
2. Rental Price Trends by City
Portugal overall: January 2025 saw a 4.1% annual rise in house rents, reaching around €16.4/m².
By mid-2025 (Q2): Rents continued to edge up, though growth slowed. Median rent rose by 3.5%, but demand softened notably.
July 2025: Annual rental growth dropped further to 2.4%, with median rents at €16.7/m².
3. Regional Highlights
Lisbon remains the most expensive: about €22.1/m².
Porto follows with around €17.7/m².
High growth observed in Viana do Castelo (+15.4%), Coimbra (+13%), Viseu (+11%).
In February 2025, city-specific annual rent increases included Évora (+18.3%), Faro (+16.7%), Funchal (+16.6%), while Porto and Lisbon registered more modest rises around +1.7% and +1.6%, respectively.
4. Demand Dynamics Shift
Q2 2025 saw each available house receive an average of just 17 enquiries—down 43% from 2024.
Cities like Porto and Coimbra have some of the least demand per listing—around 8 and 7, respectively.
Meanwhile, suburbs around Lisbon and Porto remain hotspots. Lisbon and Porto themselves do not rank among the top 50 municipalities for rental demand—those slots are held by surrounding areas like Barreiro, Amadora, Vila Franca de Xira.
5. Rental Yields and Investment Potential
The average gross rental yield in Portugal was 4.57% in Q2 2025, down from 4.96% in Q4 2024.
Porto yields hover around 4.52%, Lisbon averages 3.86%. These figures are gross and don’t account for costs like taxes, maintenance, or vacancy periods.
6. Policy & Market Response
The government introduced the “Mais Habitação” plan, aiming to add 33,000 new housing units by 2030 and allow construction on rural land.
Additionally, recent efforts to regulate short-term rentals like Airbnb may help channel more properties into the long-term rental market.
Portugal’s rental market since 2024 has shifted from steeply rising rents and tight supply to a more balanced scenario—more listings, slower rent inflation, and shifting demand patterns. This creates fresh opportunities, especially in peripheral neighborhoods and for investors watching yields.
Thinking about investing in Portugal’s thriving real estate market? I’d love to hear from you! Feel free to reach out anytime — let’s explore the best opportunities together.
Antonio Pinheiro
+31 (0)6 51760042
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