Source: Adobe Stock Author: Redaction Public housing and rents in Lisbon More than 60% of municipal rents in Lisbon are below 100 euros, across a universe of more than 21,000 housing contracts. According to Gebalis data, 63% of municipal rents are below 100 euros and around 30% do not exceed 25 euros, highlighting the weight of public housing in the city. The Housing and Urbanism councillor, Vasco Moreira Rato, stressed that these figures demonstrate the importance of public housing, arguing that the structure of municipal rents reflects the financial capacity of the families living in municipal housing. Public housing in Lisbon represents around 10% of the resident population. Public supply and the role of private developers in housing The municipal official highlighted that public housing plays an essential role in responding to the housing crisis, but rejected the idea that it is the only solution. The council’s strategy is to combine public housing, affordable housing and private development, strengthening the overall housing supply in Lisbon. The councillor also noted that the municipality has been working with private developers, mainly through licensing processes and projects with affordable housing components. In a case involving a development in Olivais, the possibility of the developer transferring affordable housing to the municipality was mentioned as an alternative to other facilities. Affordable rent and new housing models Municipal housing continues to be complemented by programmes such as affordable rent, which aim to respond to different income profiles. The municipality considers that not all housing needs can be solved through public housing alone, requiring a combination of solutions. Vasco Moreira Rato argued that the housing crisis does not have a single solution, highlighting that the economic and social context is constantly changing. In this sense, the Lisbon municipality is seeking partnerships with private entities to increase housing supply, recognising that the council does not have all the necessary resources on its own. He also stressed that “everyone will be needed” to address the housing challenge in Lisbon, defending cooperation between the public and private sectors as essential to respond to growing demand.
Source: Adobe Stock Author: Redaction Rental incentives and lack of supply The new rental incentives aim to address the shortage of supply in the rental market in Portugal, in a context of rising rents and pressure in cities. The objective is to increase renting through two schemes: the Investment Contract for Renting (CIA) and the Simplified Affordable Rental Scheme (RSAA). These rental incentives aim to make the market more accessible and stable, encouraging more housing available for rent. Portugal faces a structural imbalance in the rental market, with limited supply and high rents that make access to housing difficult. The rental incentives emerge as a response to this problem, seeking to stimulate investment and create more favourable conditions for new rental projects. CIA: investment and structured renting The Investment Contract for Renting (CIA) is one of the main rental incentives and is aimed at institutional investors. This model focuses on developing large-scale rental projects, promoting build-to-rent and ensuring greater stability in the rental market. Within the rental incentives, the CIA provides significant tax benefits, such as exemptions and reductions in taxes, from acquisition through to the operation of properties intended for rental. In return, a significant part of the development must be allocated to long-term rental. This rental incentive scheme also introduces greater contractual predictability, allowing financial balancing mechanisms in the event of legislative changes affecting the rental market. However, there are still risks associated with contractual complexity and dependence on the relationship with the State. RSAA and impact on affordable renting The Simplified Affordable Rental Scheme (RSAA) complements the rental incentives by focusing on individual landlords and small investors. This scheme simplifies processes and reduces bureaucracy in renting, encouraging properties to be placed on the market. Under the RSAA, rental incentives include tax exemptions on rental income, provided rent limits defined based on average market values are respected. This helps make renting more competitive and accessible. Despite this, the impact of the rental incentives will depend on landlord uptake and the practical implementation of the measures. The effectiveness of the system will be measured by its ability to effectively increase rental supply and balance prices in the Portuguese housing market.
Source: Adobe Stock Author: Redaction Renting a home in Madeira breaks records Renting a home in Madeira reached a new all-time high in April, with the median price set at €16.7/m². According to recent data, renting a home in Madeira rose 11.4% compared to the same month of the previous year, with a quarterly variation of 5.6%. In Funchal, renting a home in Madeira is even more expensive, with prices reaching €17.4/m², the highest value recorded in the region. Over the last three months, renting a home in Madeira in the regional capital rose 8.8%, reinforcing pressure on the housing market. At national level, renting a home in Madeira stands out in a context where the average rental price in Portugal fell by 2.7%, standing at €16.4/m². Funchal leads rental increase Renting a home in Madeira continues to place Funchal among the most expensive cities in the country. The Madeiran capital is the second city with the highest annual increase, with renting a home in Madeira rising 10.3% over the last year. Nationally, renting a home in Madeira is part of a group of cities where prices increased in nine of the 13 analysed capitals and regions. The largest rental increases include Faro, Funchal and Ponta Delgada. In the price ranking, renting a home in Madeira places Funchal in second position nationwide, just behind Lisbon at €22/m². Porto and other cities follow, but renting a home in Madeira remains among the highest values in the country. Islands drive price increases Renting a home in Madeira follows the upward trend in the autonomous regions, where rental prices have increased significantly. The Azores lead the increases, followed by Madeira, where renting a home in Madeira rose 11.4% annually. In the regional ranking, renting a home in Madeira is positioned as the second most expensive region for renting in Portugal, with €16.7/m², only behind the Lisbon Metropolitan Area. In the national market, renting a home in Madeira also stands out due to its high cost compared with more affordable regions such as the Centre and the Azores, where values are significantly lower. In some cases, renting a home in Madeira can cost three times more than in the cheapest regions of the country.
Source: Adobe Stock Author: Redaction p { margin-bottom: 0.25cm; direction: ltr; color: #000000; line-height: 115%; orphans: 2; widows: 2; background: transparent }p.western { font-family: Liberation Serif, Times New Roman, serif; font-size: 12pt; so-language: pt-PT }p.cjk { font-family: Noto Serif CJK SC; font-size: 12pt; so-language: zh-CN }p.ctl { font-family: Lohit Devanagari; font-size: 12pt; so-language: hi-IN }strong { font-weight: bold } Development in Lisbon enters public consultation Lisbon City Council has opened the public consultation period for a new development in Lisbon, located in the Olaias area, between the parishes of Penha de França and Beato. The municipal project foresees the construction of 417 housing units under the Affordable Rent Programme. The urban operation will be developed on municipal land next to Avenida Marechal Francisco da Costa Gomes and Rua António Gonçalves. The new development in Lisbon aims to strengthen the housing supply and reorganise an area currently marked by urban discontinuity. Project includes housing, commerce and services The development in Lisbon covers a total area of 60,481 square metres and includes five building plots. The total construction area exceeds 61 thousand square metres, of which more than 40 thousand will be allocated to housing. In addition to the 417 planned housing units, the project includes areas for commerce, services and facilities. Public parking spaces, new road infrastructures and collective green areas are also planned. According to the descriptive report, the goal is to create a new urban centrality, promoting local commerce and a more integrated connection between the different neighbourhoods in the eastern part of the city. Soft mobility connects several neighbourhoods One of the central elements of the new development in Lisbon will be the construction of an elevated pedestrian and cycling walkway. The structure will connect Picheleira, Alto de São João and Lavrado, facilitating soft mobility and movement between hillsides. The project aims to encourage pedestrian and cycling travel, creating public spaces for recreation and leisure. The connection between the new buildings, commercial areas and green spaces was designed to ensure continuous use of the urban space. Affordable Rent Programme advances until 2028 The urbanisation projects for this development in Lisbon will later be developed under the Affordable Rent Programme. The operation is being managed by the Working Group of the Affordable Rent Programme of Lisboa Ocidental SRU. Interested parties may consult the process and submit complaints, observations or suggestions until 28 May. The municipality believes the project could contribute to densifying the territory in a balanced way and improving the urban quality of eastern Lisbon.
Source: Adobe Stock Author: Redaction Investment in residences continues to grow Investment in student residences in Portugal reached around 1.2 billion euros between 2019 and 2025. A large part of this amount resulted from the sale of real estate assets linked to student accommodation, alongside new construction projects. In recent years, the student residence market has attracted the interest of international investors and operators specialised in academic accommodation. The growth in demand for rooms and beds for students has reinforced the attractiveness of this real estate segment. Despite strong investment in residences, supply remains limited when compared to the total number of students in the country. Currently, there are around 26,000 beds available, covering only a small part of national demand. Bed supply remains below demand Student residences continue to struggle to respond to rising demand, driven by both Portuguese and international students. Pressure on the traditional rental market has also led more students to seek this type of accommodation. Porto currently concentrates the largest number of private student residence beds, followed by Lisbon. Even so, the coverage rate remains well below that seen in several European countries, where student accommodation supply is more extensive. In the coming years, new private residences are planned in cities such as Lisbon and Porto, increasing the number of available beds. Even so, the expected growth will have a limited impact on overall student demand coverage. Residence prices vary between cities Student residence prices vary significantly between Portuguese cities. In some markets, rental values remain high, especially in premium options and in areas with higher demand. Lisbon and Porto maintain some of the highest prices in the student accommodation segment, reflecting strong demand and limited supply. Cities such as Braga also show high values in standard residences. Investment in residences is expected to continue growing in the coming years, in line with the increase in student numbers and demand for more organised accommodation solutions closer to universities.
Source: Adobe Stock Author: Redaction Lisbon among the most expensive capitals Rent in Lisbon places the Portuguese capital among the most pressured cities in the European Union in terms of access to housing. The average rent for a two-bedroom apartment reaches around €1,798, while the minimum wage considered in the study is around €1,073, creating a ratio of 167.5%. The evolution of rent in Lisbon highlights the growing weight of the rental market compared with lower incomes. The city stands out as one of the capitals where rent exceeds the minimum wage by the widest margin, second only to Prague in this indicator. Rent in Lisbon above the minimum wage European comparisons show that rent in Lisbon is significantly above the minimum wage, following a common trend in most EU capitals. On average, the cost of a two-bedroom apartment exceeds the minimum wage by several hundred euros. In Lisbon, the pressure of rent in relation to the minimum wage contributes to the displacement of many workers from city centres. The rising cost of housing has a direct impact on housing affordability, especially for those relying on the minimum wage. Data also show that only a few European capitals manage to keep the minimum wage above average rent, something that is not the case in Lisbon, reinforcing the imbalance between rents and wages. Evolution of rent in Lisbon over the last decade The evolution of rent in Lisbon shows very significant growth over the last decade. In 2015, the average rent for a two-bedroom apartment was around €860, rising to close to €1,750 in 2024, more than doubling. This increase in rent in Lisbon reflects ongoing pressure in the housing market, with no significant periods of decline. In recent years, the trend has remained upward, albeit at varying growth rates. The impact of rent in Lisbon on the minimum wage remains one of the main challenges in housing access in the capital, with the imbalance between incomes and housing costs remaining high in the European context.
Source: Adobe Stock Author: Redaction Rules for terminating a tenancy agreement Terminating a tenancy agreement in Portugal is a right for both tenants and landlords, but it requires compliance with specific legal rules. To terminate a tenancy agreement, you must communicate your decision in writing, through a registered letter with acknowledgement of receipt, respecting the defined legal deadlines. When terminating a tenancy agreement, it is essential to comply with the notice period, which varies depending on the duration of the contract and the position of the party making the decision. The notice period starts on the date the letter is received. If you do not comply, you may have to pay rent corresponding to the missing notice period. For the tenant, it is not mandatory to justify the decision to terminate a tenancy agreement, provided that part of the contract duration has already elapsed. The landlord, however, can only terminate a tenancy agreement based on legal grounds, such as the need for own housing, major renovation works or non-payment of rent. Letter to terminate a tenancy agreement When terminating a tenancy agreement, the letter must be clear, objective and contain all mandatory elements. It should include the date, full identification of both parties, the address of the property and an explicit statement of the intention to terminate the tenancy agreement, with reference to compliance with the legal notice period. It should also indicate the expected date of vacating the property and, in the case of the landlord, the reason for the decision. Keeping a copy of the letter and proof of sending is essential to ensure evidence if needed. Legal deadlines and obligations in 2026 The deadlines to terminate a tenancy agreement vary depending on the type and duration of the contract. In long-term contracts, the landlord may have to comply with longer notice periods, while the tenant has greater flexibility. Recent changes reinforce the importance of complying with all legal obligations when terminating a tenancy agreement, including tax rules and communication with the relevant authorities. Support and alternatives to renting Before terminating a tenancy agreement, it may be useful to assess available alternatives. In 2026, there are rental support measures that can help reduce monthly costs and avoid the need to move. Affordable rental programmes allow for lower rents and greater stability, making them a relevant option before proceeding to terminate a tenancy agreement. Assessing these solutions can contribute to a more informed and balanced decision.
Source: Adobe Stock Author: Redaction Rent freezes and confidence in the rental market Rent freezes continue to be the main factor of distrust in Portugal’s rental market. For many landlords, rent freezes represent a historical injustice that reduces the sector’s attractiveness. According to the Lisbon Property Owners Association (ALP), rent freezes are at the centre of landlords’ concerns and explain much of the weak market confidence. The association stresses that older rent freezes limit property income and hinder the renewal of supply. In this context, rent freezes emerge as the key issue that must be addressed to restore confidence in the rental market. Government measures and landlords’ response The Montenegro Government has introduced several measures to boost the rental market, but rent freezes remain unresolved. Among landlords surveyed by ALP, rent freezes are the top priority to be addressed, above tax or procedural issues. Despite proposals to reduce taxes and simplify eviction processes, rent freezes remain the main barrier to confidence. For many landlords, rent freezes continue to weigh more heavily than any announced tax incentives. Market priorities and impact of rent freezes The ALP survey shows that rent freezes are seen as the main injustice in the current system. Most landlords believe that rent freezes should be reviewed to restore balance in the rental market. In addition, the data reveals that rent freezes directly affect a large share of landlords, limiting their participation in the market. Without a solution to rent freezes, landlord confidence is unlikely to recover and housing supply will remain constrained.
Source: Adobe Stock Author: Redaction House rents maintain steady growth House rents in Portugal continue to show a moderate and consistent increase in 2026. According to the National Statistics Institute (INE), the year-on-year variation in rents reached 5.1% in March, broadly in line with the 5.2% recorded in the previous month. This development confirms a trend of stabilisation after several months of slowdown throughout 2025. Growth in rents in existing contracts The latest data from INE show that the average value of rents in existing lease contracts continues to grow at around 5%. This increase reflects developments in the housing market, still under pressure from high demand and limited supply. House rents thus maintain a predictable trajectory, without abrupt fluctuations, indicating some stability in the sector. Regional differences in rents Geographically, all regions of the country recorded increases in house rents. The Madeira region stood out with the highest rise, reaching 6.5%. On a monthly basis, there was an average growth of 0.5% in March. The regions of North, Centre, Oeste e Vale do Tejo, Setúbal Peninsula, Alentejo and Azores led the monthly increases, all with variations of 0.6%, with no region recording a decline. Updates and outlook for 2026 Throughout 2026, many tenants may face new updates in house rents as contracts complete another year. The legal update coefficient is set at 2.24%, but may include increases accumulated over the past three years, which could result in rises of up to 11% in some cases. It should also be noted that these statistics cover all existing contracts. However, the National Statistics Institute has suspended the release of local data on new contracts since October 2025, due to reliance on information from the Tax Authority. The latest detailed data available refer to the first quarter of 2025.
Source: Adobe Stock Author: Redaction Rent support adjusted in Matosinhos The Matosinhos City Council has updated the rent support regulation, increasing the income limit and expanding access to the programme. With this change, rent support now covers more families, adapting to the current socio-economic reality of the municipality. According to the local authority, this revision of rent support comes following the increase in the national minimum wage in 2026, which made it necessary to review eligibility criteria. The aim is to ensure that rent support continues to meet the real needs of families in greater difficulty. More families covered by rent support With the update to the regulation, rent support in Matosinhos is expected to reach more households. The municipality estimates that the increase in income thresholds will allow, on average, more 10 families per month to be supported, representing around 120 new households per year. The strengthening of rent support aims to respond to the impact of the housing market, where many families face increasing difficulties in paying rent. The rent support programme thus plays a central role in mitigating housing vulnerability in the municipality. Rent support strengthened for elderly people One of the main new features of rent support in Matosinhos is the introduction of a 10% increase in the support amount for people aged 65 or over. This measure aims to strengthen rent support for an age group considered particularly vulnerable. According to the municipality, this update of rent support will cover around 326 households. The aim is to adapt rent support to current socio-economic conditions, promoting greater housing stability and preventing situations of housing loss risk.
Source: Adobe Stock Author: Redaction Grândola amends PDM to create housing The municipality of Grândola has launched a process to amend the PDM (Municipal Master Plan), aiming to reclassify rural land as urban and move forward with public housing projects. This PDM amendment is considered simplified and seeks to enable the construction of homes at controlled costs. The strategy of Grândola amends PDM focuses on adapting land in the parishes of Azinheira dos Barros and Melides, allowing for new housing solutions. The measure comes amid strong pressure on the local real estate market. In Azinheira dos Barros, the construction of 27 homes is planned, in a project promoted by Fundação Padre Américo, with an estimated investment of 4.4 million euros. More than 100 housing units planned in Melides In Melides, the plan is more ambitious. The PDM amendment will allow land development operations for the construction of municipally-led public housing, with an investment exceeding 12 million euros. With this measure, Grândola amends PDM to ensure sufficient scale to reduce construction costs, in a scenario marked by price volatility. In total, around 120 housing units are expected to be created for controlled-cost housing or affordable rental. The municipality ensures that the entire process will be publicly driven, guaranteeing that the properties will be used exclusively for housing purposes and cannot be diverted to other uses. Housing is a priority in the municipality The decision that Grândola amends PDM reflects the urgency of addressing the housing crisis in the municipality. The local authority intends to direct the new housing units to residents and young people, aiming to retain population and ensure access to decent housing. The preventive public participation phase of the PDM amendment took place between 16 March and 3 April, within the framework of legislation that facilitates the reclassification of rural land into urban. In addition to these projects, the municipality is also developing initiatives in Grândola, Carvalhal and Azinheira dos Barros, strengthening the public housing supply. Among the solutions under analysis are the allocation of land to cooperatives and the rehabilitation of vacant properties.
Source: Adobe Stock Author: Redaction Call for homes with reduced rent in Oeiras The municipality of Oeiras has launched a new call to allocate 101 homes with reduced rent, intended for permanent residence. This initiative is part of the housing support programme and aims to facilitate access to homes with reduced rent for families struggling to afford market prices. The available homes include one, two and three-bedroom properties and are located in the parishes of Carnaxide and Queijas, Barcarena and Porto Salvo. Rents start at €217.50 for a one-bedroom apartment and can reach €362.23 for a three-bedroom, significantly below private market values. Who can apply for homes with reduced rent Homes with reduced rent are intended for households that meet specific criteria defined by the municipality. Applicants must be over 18 years old and have lived or worked in the municipality of Oeiras for at least three years. In addition, applicants must demonstrate financial need and live in inadequate housing conditions, such as overcrowding, precarious situations or high housing costs. They must also be registered in the municipality’s local housing strategy, ensuring support reaches those most in need. Application deadlines and conditions The deadline to apply for homes with reduced rent is 5:30 pm on 15 April. The process is part of the housing support programme, which aims to address the growing difficulties in accessing homes with reduced rent for both low-income households and the middle class. With this measure, Oeiras strengthens the supply of affordable housing, promoting solutions that help reduce the financial burden on families and increase the availability of homes with reduced rent in the municipality. Affordable housing as a priority in the municipality The launch of this call reflects the municipality’s commitment to affordable housing, at a time when finding homes with reduced rent has become an increasing challenge. The initiative aims to balance the market and ensure better living conditions for residents. By providing homes with reduced rent, Oeiras aims to attract and retain residents, contributing to more sustainable and inclusive urban development, where access to housing becomes a reality for different types of households.
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