Demand for Rental Homes in Portugal Remains High, but Rents Keep Rising

The demand for rental homes in Portugal remains high, although it is now more evenly distributed due to a greater supply available. Still, rents continue to rise. In the year ending in October, house rents increased by 5.7%, accelerating compared to the annual growth recorded in the previous month (4.1%). This evolution pushed the median cost of renting a home in the country to a new record high of 17 euros per square meter (€/m2) at the end of last month, according to the idealista price index. The upward trend in rents continues across the entire national territory, although with different paces between regions, districts, and capitals.

Higher Rents in All Major Cities

The price of houses for rent increased in all 16 district capitals and autonomous regions analyzed. The largest variations were recorded in Viana do Castelo (21.9%), Faro (19.6%), Santarém (14.8%), Viseu (14.4%), Coimbra (14.2%), Vila Real (14%), Castelo Branco (13.5%), and Leiria (11%).

Cities where rental prices increased by less than double digits include: Ponta Delgada (9.6%), Braga (8%), Setúbal (7.9%), Évora (4.7%), Porto (4.2%), Lisbon (4%), Aveiro (3.6%), and Funchal (3.4%).

Lisbon continues to be the most expensive city to rent a home, at 22.8 €/m2, followed by Porto (18.3 €/m2), Faro (15.8 €/m2), and Funchal (15.7 €/m2). Next come Setúbal (13 €/m2), Coimbra (12.7 €/m2), Évora (11.8 €/m2), Aveiro (11.8 €/m2), and Ponta Delgada (11.7 €/m2).
Among cities with mid-range prices are Braga (10.3 €/m2), Viana do Castelo (9.8 €/m2), Santarém (9.5 €/m2), and Leiria (8.9 €/m2).

The most affordable cities to rent a home are Viseu (8 €/m2), Vila Real (7.5 €/m2), and Castelo Branco (7.5 €/m2).

House Rental Prices by Major Cities

Median value in October (€/m2/month)
Variation between October 2025 and the same month of the previous year (%)

District capitals / autonomous regions Rents (€/m2) Annual variation (%)
Viana do Castelo 9.8 21.9%
Faro 15.8 19.6%
Santarém 9.5 14.8%
Viseu 8.0 14.4%
Coimbra 12.7 14.2%
Vila Real 7.5 14.0%
Castelo Branco 7.5 13.5%
Leiria 8.9 11.0%
Ponta Delgada 11.7 9.6%
Braga 10.3 8.0%
Setúbal 13.0 7.9%
Évora 11.8 4.7%
Porto 18.3 4.2%
Lisbon 22.8 4.0%
Aveiro 11.8 3.6%
Funchal 15.7 3.4%

Source: idealista — Created with Datawrapper

…and Across All Districts and Islands

Of the 20 districts and islands analyzed, rental prices increased in all territories without exception in the year ending in October. The largest rent increases were observed in Beja (22.1%), Guarda (21.5%), Castelo Branco (17.5%), Coimbra (17.3%), and Portalegre (15.1%).

Rental housing also became more expensive in Viana do Castelo (14.9%), Vila Real (13.9%), Santarém (12.2%), Évora (11.7%), São Miguel Island (10.6%), Faro (10.6%), Viseu (9.3%), Bragança (8.4%), Braga (6.9%), Setúbal (6.7%), Leiria (6.3%), Aveiro (5.7%), Lisbon (4.9%), Porto (4.7%), and Madeira Island (4.2%).

In the ranking of the most expensive districts and islands to rent a home, Lisbon leads with 20.9 €/m2, followed by Porto (16.2 €/m2), Faro (16 €/m2), Madeira (15 €/m2), Setúbal (14.1 €/m2), Coimbra (12.3 €/m2), São Miguel (11.4 €/m2), Évora (11.2 €/m2), and Beja (10.5 €/m2). Next are Aveiro (10.2 €/m2), Braga (10.1 €/m2), Leiria (9.9 €/m2), Viana do Castelo (9.7 €/m2), and Santarém (9 €/m2).

The most affordable areas to rent a home are Vila Real (8.4 €/m2), Castelo Branco (8.2 €/m2), Portalegre (8 €/m2), Viseu (7.7 €/m2), and Guarda (7.3 €/m2), followed by Bragança (6.6 €/m2), which remains the most affordable market in the country.

House Rental Prices by Districts and Islands

Median value in October (€/m2/month)
Variation between October 2025 and the same month of the previous year (%)

Districts / Islands Rents (€/m2) Annual variation (%)
Beja 10.5 22.1%
Guarda 7.3 21.5%
Castelo Branco 8.2 17.5%
Coimbra 12.3 17.3%
Portalegre 8.0 15.1%
Viana do Castelo 9.7 14.9%
Vila Real 8.4 13.9%
Santarém 9.0 12.2%
Évora 11.2 11.7%
Faro 16.0 10.6%
São Miguel (Island) 11.4 10.6%
Viseu 7.7 9.3%
Bragança 6.6 8.4%
Braga 10.1 6.9%
Setúbal 14.1 6.7%
Leiria 9.9 6.3%
Aveiro 10.2 5.7%
Lisbon 20.9 4.9%
Porto 16.2 4.7%
Madeira (Island) 15.0 4.2%

Without representative samples for Bragança, Guarda, and São Miguel Island.
Source: idealista — Created with Datawrapper

Alentejo Records the Highest Rent Increase Among Regions

Rental prices rose in all regions of Portugal over the past year. The largest annual variations were recorded in the Alentejo (16.1%), followed by the Centre (11.3%), the Autonomous Region of the Azores (10.9%), the Algarve (10.6%), the North (4.9%), the Lisbon Metropolitan Area (4.9%), and the Autonomous Region of Madeira (4.5%).

As for rental prices, the Lisbon Metropolitan Area remains the most expensive region in the country, with 20.2 €/m2, followed by the Algarve (16 €/m2), Autonomous Region of Madeira (15 €/m2), and North (14.8 €/m2).
More affordable prices are found in the Alentejo (11.5 €/m2), Centre (10.3 €/m2), and the Autonomous Region of the Azores (10.2 €/m2), which continues to be the most affordable area to rent a home in Portugal.

Rents on the Rise

Évora, Alentejo
Photo by Magali Guimarães on Pexels

idealista Real Estate Price Index

To produce the idealista real estate price index, the advertised offer prices (based on built square meters) published by idealista advertisers are analyzed. Atypical listings and those with out-of-market prices are removed from the statistics.

We also include the “single-family homes” typology and exclude all listings in our database that have been inactive or without user interaction for some time.
The final result is obtained through the median value of all valid listings for each market.