Source: Adobe Stock Author: Redaction Taxation and incentives for moderate rent The Government has approved a set of fiscal measures to increase the supply of housing. These include reducing taxes on renting at moderate prices, encouraging owners to make properties available for affordable rent. In addition, VAT on construction works for owner-occupied housing or housing intended for moderate rents will be reduced, including self-build projects. There will also be a capital gains exemption on property sales when the proceeds are reinvested in housing for moderate rent. These incentives aim to stimulate construction and renting, increasing supply and helping to moderate prices in the housing market. Simplification of processes and urban legislation Another key measure focuses on the Urbanisation and Building Legal Regime (RJUE), aiming to make processes simpler and more predictable. The NRAU revision will be sent to the President of the Republic, establishing clear rules, shorter deadlines, and streamlined procedures. With these changes, the Government expects to reduce costs and accelerate construction, putting more homes on the market and addressing the delays that hinder access to housing. Unlocking undivided properties The Government package also includes measures to unlock undivided properties, often resulting from inheritances. A special process will allow, after two years, one or more heirs to trigger the sale of a property even without full agreement, ensuring everyone’s right to participate and protecting property ownership. This measure aims to bring currently vacant housing to the market, both in urban and rural areas, increasing the available supply. Objectives and impact on housing The set of measures approved by the Government aims to increase the housing supply, promote renting at moderate prices, and facilitate access to homeownership. With fiscal incentives, simplified processes, and the unlocking of properties, the goal is to create a more dynamic market, reduce structural constraints, and contribute to more balanced prices. The expectation is that these policies will strengthen the real estate sector and improve access to housing for families and investors, consolidating sustainable solutions in the medium and long term.
Source: Adobe Stock Author: Redaction Oeste with five municipalities among the cheapest Five municipalities in the Oeste region stand out as the most affordable for renting a house in Portugal. Alcobaça leads with 9.1 euros/m², followed by Lourinhã (9.6 euros/m²), Caldas da Rainha (9.7 euros/m²), Torres Vedras (10.4 euros/m²) and Peniche (10.4 euros/m²). These values position the region as one of the most competitive in rental costs, especially for families and young people looking for affordable housing. Benavente, in the district of Santarém, is the municipality with the cheapest square metre in the country, at 5.2 euros/m². Other municipalities with rents below 7.5 euros/m² include Bragança, Castelo Branco, Santa Maria da Feira, and Viseu. These figures show that renting a house outside major urban centres is still significantly more economical. Municipalities with rents below 10 euros/m² In addition to the five municipalities in Oeste, other councils offer competitive average prices for renting a house. Among them are Abrantes (8 euros/m²), Barcelos (8.2 euros/m²), Covilhã (8.5 euros/m²), Vila Nova de Famalicão (8.6 euros/m²), Ovar (8.8 euros/m²), Esposende (8.9 euros/m²) and Caminha (8.9 euros/m²). Alcobaça, Valongo (9.3 euros/m²), Leiria (9.3 euros/m²), Viana do Castelo (9.5 euros/m²), Figueira da Foz (9.6 euros/m²), Lourinhã (9.6 euros/m²), Caldas da Rainha (9.7 euros/m²) and Ílhavo (9.8 euros/m²) also offer affordable options for renting a house. Other municipalities in the North and Centre, such as Póvoa de Varzim, Vila do Conde and Braga, have rents of 10.2 euros/m², while Torres Vedras and Peniche remain at 10.4 euros/m². These figures confirm that it is possible to rent a house at moderate costs outside major urban centres, especially in areas with lower real estate pressure. Most expensive municipalities to rent a house On the other hand, the most expensive municipalities to rent a house are concentrated in Lisbon and along the coast. The capital leads with 21.7 euros/m², followed by Cascais (20.1 euros/m²), Sines (18.6 euros/m²), Loulé (17.2 euros/m²) and Oeiras (17 euros/m²). These values reflect high demand, limited supply, and tourist pressure, which make renting a house more difficult and expensive in these areas. The disparity between the cheapest and most expensive municipalities highlights that renting a house in Portugal still varies significantly by location. For those seeking affordable housing, regions like Oeste and some inland towns offer more economical opportunities, while the capital and coastal councils maintain high rents.
Source: Adobe Stock Author: Redaction House rents falling in the country The rental market in Portugal is beginning to show signs of change, with house rents following a downward trend. The increase in the supply of houses for rent, combined with a more balanced demand, is contributing to this development. This fall in house rents is most evident in areas outside the main cities, where prices were already lower. For many families, this situation may represent an opportunity to find a home at more manageable costs. Cheapest municipalities to rent a house Among the municipalities with the most affordable house rents are Castelo Branco, Santa Maria da Feira, Viseu, Covilhã and Barcelos. These areas continue to offer lower prices, making them attractive options for those looking to save. There are also other municipalities where house rents remain below higher levels, such as Vila Nova de Famalicão, Santarém, Leiria, Lourinhã, Viana do Castelo, Figueira da Foz, Caldas da Rainha, Valongo, Ílhavo, Guimarães and Braga. In many of these municipalities, it is possible to rent a house at lower prices, especially compared with the major urban centres, which has increasingly attracted people. Regional differences remain Despite the fall in house rents in several municipalities, regional differences continue to be significant. Areas such as Lisbon, Cascais or Oeiras maintain higher prices due to strong demand and limited supply. Nevertheless, the current trend of falling house rents may indicate a phase of greater balance in the rental market. For those looking for a home, considering cheaper municipalities can be the best way to find more affordable options with better quality of life.
Source: Adobe Stock Author: Redaction Tenant evictions surge sharply in 2025 Tenant evictions in rented homes recorded a significant increase in 2025 , exceeding 40% compared to the previous year. In total, 1,447 eviction orders were issued, reflecting a rise of 44%. This growth in evictions comes amid changes in the rental market, where pressure on tenants continues to intensify, particularly in major cities. Despite the number of new eviction requests remaining practically stable, with 2,562 cases registered, the evictions actually carried out surged. This scenario reveals greater speed and efficiency in the processes, contributing to the rise in evictions and to increased turnover in the rental market. Lisbon and Porto account for most evictions Lisbon continues to lead in the number of tenant evictions, accounting for more than 40% of the processes initiated in 2025. In the capital, 1,035 procedures were recorded, an increase of 7%, and 600 eviction orders, representing a rise of 50%. These figures confirm Lisbon as the main hotspot for evictions in Portugal. In Porto, the trend is similar, although with some differences. A total of 417 special eviction procedures were recorded, slightly below the previous year, but eviction orders increased by 30%, reaching 233 cases. In both Lisbon and Porto, evictions reflect the growing pressure on access to housing. Changes to the law and impact on evictions Most tenant evictions result from failure to pay rent or other contractual obligations. Another relevant cause is landlords’ opposition to contract renewal, which has been gaining weight in eviction proceedings. Changes to the urban rental framework introduced in recent years have helped speed up evictions by simplifying procedures and reducing deadlines. Currently, it is possible to proceed with evictions even in situations where the tenant is not notified, and the deadline for vacating the property may be less than 30 days following a favourable decision. Meanwhile, the Government is preparing new measures to strengthen landlords’ confidence and increase housing supply. However, these proposals have drawn criticism, particularly as they may further increase the number of evictions and worsen the situation of more vulnerable tenants.
Source: Adobe Stock Author: Redaction Funchal stands out among the most sought-after municipalities Idealista published an analysis of the 50 most sought-after municipalities for renting a house in Portugal. Of the 50 municipalities, 20 have rents below €1,000 per month. The capital of Madeira, Funchal, is the only municipality from the archipelago on this list, ranking 36th in demand, but it does not fall within the group of more affordable rents. At the top of the national list is Odivelas, followed by Amadora, Barreiro, Sintra and Loures. Lisbon appears only in 48th place and Porto in 71st. These figures highlight a demand trend moving away from major cities, seeking more affordable alternatives, albeit subject to price increases. Rent trends in the main regions In Greater Lisbon, all the most sought-after municipalities have rents above €1,000. In the Porto Metropolitan Area, fewer municipalities are in the top 50, but several already exceed this threshold, such as Vila Nova de Gaia (€1,329/month) and Porto itself (€1,241/month). In the Algarve, Faro stands out with an average rent of €1,710/month, pushing up prices in the region, with several municipalities exceeding €1,200/month. These figures reveal growing pressure on the rental market in traditionally touristy or densely populated areas. More affordable municipalities attract demand Among the most affordable municipalities, Covilhã leads with an average rent of €568/month, maintaining significant demand. There are still nine municipalities in the top 50 that combine high demand with rents below €1,000/month. Idealista’s analysis indicates that demand is gradually shifting from major cities to more economical areas, reflecting the need for more affordable housing and growing pressure on rental prices. This trend underscores the importance of monitoring the market for families and investors interested in the real estate sector.
Source: Adobe Stock Author: Redaction Demand grows outside major cities The rental market in Portugal continues to change, with more and more people seeking alternatives outside large urban centres. High rents in cities such as Lisbon and Porto are pushing families towards peripheral areas, where it is still possible to find rents below €1,000. This shift in demand reflects the need to balance housing costs with wages and quality of life. Spillover effect pressures outskirts Migration to neighbouring municipalities has led to a gradual increase in prices in those areas. Even so, not all municipalities follow the same trend. Despite the spillover effect, there are still several regions where rents below €1,000 remain, making them highly attractive. However, property market pressure is also beginning to be felt in these areas, reducing affordability. Municipalities with more affordable rents Among the 50 most sought-after municipalities, 20 have rents below €1,000. These locations are spread across different regions of the country, far from the most expensive areas. Municipalities such as Torres Novas, Oliveira de Azeméis, Marinha Grande, Amarante and Guimarães stand out, where demand is high and prices remain more controlled. Covilhã emerges as the most affordable example, with significantly lower values and strong interest from tenants. Marked differences across the territory While some areas offer rents below €1,000, others record much higher values. Municipalities such as Funchal, Lisbon, Faro and Oeiras lead the highest prices, which helps explain their relatively lower demand. In the north and the Algarve, rising rents are also being felt in peripheral areas, reducing affordable options. Still, rents below €1,000 continue to represent an important opportunity for those looking for housing outside major urban centres.
Source: Adobe Stock Author: Redaction Renting a home becomes a global challenge Renting a home is becoming increasingly difficult in the world’s main cities. The rising cost of housing has been putting pressure on household budgets, especially in large urban centres where demand remains high. In recent years, rents have grown faster than wages, worsening access to housing and forcing many families to rethink where they live and work. New York leads ranking of most expensive rents According to recent data, New York is the most expensive city in the world to rent a home. The average price of a three-bedroom apartment in the city centre exceeds 8,300 dollars per month. It is followed by Singapore, Boston and London, which also have very high rents. Other cities such as San Francisco also show very high prices, reflecting strong demand and limited housing supply. In these markets, the high cost of living is directly linked to wage levels, but also to housing pressure. Europe follows the rise in prices In Europe, cities such as London, Amsterdam and Dublin remain among the most expensive for renting a home. Paris and Munich also record high prices, especially in urban centres. Cities traditionally seen as more affordable, such as Milan, Lisbon, Madrid and Barcelona, have experienced significant increases in rents. This growth is driven by tourism, foreign investment and population growth. Global differences remain significant Despite the overall increase, there are regions where renting a home remains more affordable. Cities such as Cairo, New Delhi, Bogotá and Johannesburg have significantly lower rents. These differences reflect not only the level of economic development, but also the dynamics of local housing markets. Still, the global trend points to a continuous rise in the cost of renting a home, making access to housing one of today’s main challenges.
Source: Adobe Stock Author: Redaction Government measures and impact on rental housing The recent package of government measures, including changes to evictions and joint inheritance, is considered by APPII an important step for the rental housing market in Portugal. These changes aim to balance the rights and duties of landlords and tenants, protecting both parties and making renting more secure for everyone. According to the association, measures that provide legal clarity and predictability can encourage more owners to place properties on the rental market, increasing the supply of available homes for rent and meeting growing demand in various regions of the country. Confidence and investment in the rental market For years, many property owners have hesitated to place homes for rent due to legal uncertainty and difficulties recovering properties in case of default. This situation has limited the development of Build to Rent projects in Portugal, a solution that requires strong confidence from both investors and landlords. APPII emphasises that, to increase investment in rental housing, it is essential to create clear, fair, and balanced rules that reduce risks associated with rental contracts and provide long-term legal certainty. Predictability and speed in processes One of the main challenges in the rental market in Portugal has been the slowness and uncertainty of legal processes related to evictions and tenant disputes. APPII highlights that measures ensuring greater predictability and speed in processes are fundamental to restoring market confidence. With clear rules and faster procedures, investors can better plan their rental projects, increase the supply of available properties, and make the market more dynamic and attractive to new investors. Legal certainty as a growth driver The association points out that without legal certainty, there is no sustainable investment in rental housing. Creating a predictable and proportional legal framework is essential to strengthen the confidence of landlords and investors. A market with clear rules attracts more capital for housing projects, stimulates the construction and refurbishment of rental properties, and helps meet the growing demand for homes to rent in Portugal. With greater legal certainty, investment in rental housing can grow steadily, contributing to a stronger and more efficient real estate sector, benefiting both investors and tenants.
Source: Adobe Stock Author: Redaction Price increases in Madeira House rental prices in the Autonomous Region of Madeira rose in February compared to the same period last year. The median rent in the region is currently around 15.7 euros per square metre, reflecting a moderate growth trend. In Funchal, prices remained stable, with the square metre around 16.2 euros. This stability hides small quarterly variations that indicate a slight upward trend over the last three months. At the national level, the average rental price is slightly lower than in Madeira, remaining largely stable compared to the same period last year. The analysis shows that despite regional differences, the rental market remains active and competitive, with variations depending on location and specific local demand. Comparison between cities and districts Geographically, Lisbon continues to be the most expensive city for renting a house , followed by Porto and Funchal. Other cities such as Faro, Setúbal, and Coimbra have more affordable average prices, while Viseu, Castelo Branco, and Bragança are among the districts with the cheapest rentals. Data show that nine of the fifteen district capitals and autonomous regions analysed recorded an increase in rental prices. The largest increases were in Bragança, Coimbra, and Leiria, while Porto, Braga, Évora, and Viseu saw slight decreases or stability. This variety demonstrates how the property rental market in Portugal is uneven, influenced by factors such as demand, supply, and location. Impact on small and medium towns In mid-sized cities and less central regions, prices remain more accessible, allowing families and renters with limited budgets to find suitable options. In districts such as Viana do Castelo, Santarém, and Castelo Branco, the cost per square metre is below the national average, creating opportunities for affordable housing. On the other hand, tourist or economically dynamic areas, like Madeira or metropolitan regions, have higher prices, reflecting demand pressure and the added value of location. This difference between urban and rural areas highlights the importance of policies that balance the rental market and ensure access to housing at different levels. Market trends and outlook Over the past twelve months, most districts and islands analysed recorded increases in rental prices, while some remained stable or saw slight declines. The largest rise was observed in Bragança, followed by Beja, Castelo Branco, and Coimbra, while declines occurred in Guarda, Vila Real, Faro, Porto, and Viseu. The current scenario reinforces Lisbon and Madeira as the most expensive areas, keeping the average price per square metre above the values in most regions of the country. For tenants, this requires attention to price trends and careful planning, while for landlords it represents an opportunity to consistently monetise properties. Overall, the market shows active rental activity, with constant regional adjustments and significant differences between urban and less densely populated areas.
Source: Adobe Stock Author: Redaction House rents continue to rise House rents per square metre increased by 5.2% in February compared with the same month in 2025, rising by one tenth compared with January. According to data published this Wednesday by the National Statistics Institute (INE), all regions showed positive year-on-year changes, with Madeira standing out, where the increase was 7%. On a monthly basis, the average rent showed a variation of 0.6%, slightly lower than the January variation (-0.2 percentage points). Madeira again led the increases with a 0.7% rise, while no region recorded a negative change. This reflects ongoing pressure on the rental market, especially in metropolitan areas and islands. CPI and core inflation on the rise The INE also reported that the year-on-year change of the Consumer Price Index (CPI) was 2.1% in February, up two tenths from January, confirming previous estimates. Core inflation, which excludes energy products and unprocessed food, stood at 1.9%, an increase of 0.1 percentage points compared with the start of the year. The CPI increase was mainly driven by unprocessed food, which rose 6.7% compared with February 2025, due to bad weather affecting several farms and greenhouses, forcing imports. In contrast, energy prices fell by 2.2% over the same period. Other sectors with significant changes Beyond rents and food, the INE recorded increases in transport and in catering and hospitality, with year-on-year changes of 0.6% and 4.8%, respectively. Conversely, costs for housing, water, electricity, gas and other fuels slowed from 2.9% in January to 2.5% in February, while information and communication registered -2.5%. The main positive contributors to inflation were food and non-alcoholic beverages, as well as restaurants and accommodation. Clothing, footwear, and information and communication services had the largest negative contributions. Monthly variations and comparison with the Eurozone In the monthly measure from January to February, the CPI rose 0.1%, reversing the -0.7% drop observed in the previous month and compared with -0.1% in February 2025. The Portuguese Harmonised Index of Consumer Prices (HICP) remained at 2.1%, in line with the CPI, but 0.2 percentage points above the Eurostat estimate for the Eurozone. These figures reinforce the growing pressure on the rental market and living costs in Portugal, being particularly relevant for families and investors following price trends and inflation.
Source: Adobe Stock Author: Redaction Build to Rent in the housing debate The discussion around housing in Portugal has intensified in recent years, mainly due to rising house prices and rents. In this context, the Build to Rent model is beginning to gain prominence as a possible solution to increase the supply of housing intended for rental. This model is based on the construction of developments designed from the outset for renting, with professional management and structured services for residents. The approach differs from the traditional model, in which housing is mainly built for sale. By focusing on long-term renting, developers aim to respond to the growing demand for flexible and stable housing solutions. Renting gains weight in the housing market Although Portugal continues to be a country where most of the population lives in owner-occupied homes, the current context is bringing changes to the housing market. The rise in purchase prices and rents is leading many families and young people to reconsider renting as an alternative. In several urban areas, particularly in the central districts of major cities, rental prices have reached high levels, creating greater pressure on access to housing. This reality reinforces the need to increase the number of homes available to rent at more balanced prices. It is in this scenario that Build to Rent emerges as a strategy to expand the housing stock in the rental market. Projects planned for this purpose can allow greater scale, more predictability for investors and better management conditions for those living in these buildings. Challenges for developing new projects Despite its potential, the development of Build to Rent projects depends on several factors. Economic viability remains one of the main challenges to expanding this housing model. High land, construction and financing costs can make it difficult for developers to balance their accounts. When these factors do not allow profitability to be ensured, many projects end up returning to the traditional housing sales model. For this reason, sector specialists argue that regulatory stability and confidence in the market are essential to encourage new investment. Another aspect considered fundamental is the integration of rental housing into urban planning instruments. By including this type of project in municipal strategies, it becomes possible to increase the scale of supply and create more favourable conditions for the development of new housing solutions. Industrialised construction may accelerate supply The industrialisation of construction also emerges as an important element in addressing housing challenges. The production of components in a factory environment makes it possible to reduce construction times, better control costs and minimise waste. In addition to speeding up the delivery of new homes, this method can help make housing more affordable. The use of industrialised processes also facilitates the incorporation of recycled materials and the achievement of higher levels of energy efficiency. Given the current crisis in access to housing, many specialists argue that the solution will involve a combination of new forms of investment, innovation in construction and more stable public policies. Build to Rent therefore emerges as one possible piece in increasing supply and helping to balance the housing market in Portugal.
Source: Adobe Stock Author: Redaction Affordable rent in Lisbon continues in 2026 The affordable rent programme in Lisbon will remain active for another year. Lisbon City Council has approved the renewal of the municipal rent subsidy until February 2027, ensuring support for hundreds of families in the city. The decision was taken unanimously at a meeting of the municipal executive held on 4 March. The aim is to ensure that the current beneficiaries of the affordable rent programme in Lisbon continue to receive financial support to cover housing costs. Currently, the support reaches 325 households, who receive a monthly subsidy to help pay the rent. This measure is part of the Municipal Subsidy Programme for Affordable Rent, created to support families whose rents are too high compared to their monthly income. Municipal support reaches 325 families The renewal of the programme involves an estimated municipal expenditure of 1.2 million euros. This amount guarantees the continuation of the monthly rent subsidy for another 12 months. Affordable rent in Lisbon has the main objective of helping families who live in homes rented on the private market but face difficulties paying the rent. To continue benefiting from the support, current beneficiaries will have to prove again the economic conditions that justified the allocation of the subsidy. After these conditions are validated by the municipality, the payment of the monthly support will resume. Rising rents reinforce the need for the programme According to the City Council, the renewal of affordable rent in Lisbon comes in a context of economic difficulties and a general rise in rents in the city. In recent years, the rental market in the capital has seen strong pressure on prices, which has made access to housing more difficult for many families. The municipal programme aims to reduce this impact and ensure greater housing stability. Since the creation of the programme, the municipality has already allocated more than six million euros to this support, benefiting more than 2,500 families in the city. Lisbon schools may have more assistants At the same City Council meeting, a motion was also approved defending an increase in the number of educational action assistants in the city’s schools. The proposal asks the Government to guarantee the presence of sufficient assistants in all educational establishments throughout their opening hours. The aim is to ensure better support conditions for students, including those with special health needs. The motion also recommends creating mechanisms that allow the number of non-teaching staff to be adjusted to the specific needs of each school and to value the careers of these professionals within the education system.
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