There is good news for those looking to rent a home in Portugal. Not only have housing rents fallen slightly, but there is also more housing supply available in this market, at a time when landlords see the reduction in IRS on rental income (from 25% to 10%) approaching, as предусмотрed in the Government’s fiscal package, already approved in Parliament at the committee stage. This is precisely what this analysis of the latest data from idealista reveals: the stock of homes available for rent in Portugal grew by 11% in the last quarter of 2025 compared to the same period of the previous year.
More homes for rent in 14 major cities…
Over the past year, the supply of homes for rent increased in 14 of the 17 district capitals (or autonomous region capitals) analysed. Coimbra was the city where stock rose the most (47%), followed by Aveiro (45%), Ponta Delgada (33%) and Vila Real (32%).
Significant increases in the supply of homes for rent were also recorded in Faro (24%), Leiria (23%), Viana do Castelo (20%), Lisboa (11%), Porto (11%), Setúbal (10%), Viseu (10%), Braga (9%), Castelo Branco (8%) and Guarda (5%).
In the opposite direction, the supply of homes for rent decreased in only three major cities: Funchal (-14%), Santarém (-6%) and Évora (-2%), with the Madeiran capital recording the sharpest contraction, according to the data analysis by idealista, the leading real estate marketplace in Southern Europe.
Supply of homes for rent in major cities
Change between Q4 2025 and the same period of the previous year (%)
District capitals (or autonomous region capitals) | Change in supply
Coimbra | 47%
Aveiro | 45%
Ponta Delgada | 33%
Vila Real | 32%
Faro | 24%
Leiria | 23%
Viana do Castelo | 20%
Porto | 11%
Lisboa | 11%
Setúbal | 10%
Viseu | 10%
Braga | 9%
Castelo Branco | 8%
Guarda | 5%
Évora | −2%
Santarém | −6%
Funchal | −14%
Table: idealista/news
Source: idealista
Created with Datawrapper
… but less in most districts and islands
Despite the growth recorded in the major cities and at national level, the supply of homes for rent decreased in most districts and islands over the last twelve months, with increases observed in only two territories. Madeira led stock growth with an increase of 13%, followed by Évora (3%). In Faro, supply remained stable (0%).
The sharpest drops in rental housing supply were observed in Guarda (-35%), Aveiro (-27%) and on the island of São Miguel (-27%), followed by Coimbra (-24%), Braga (-17%), Vila Real (-16%), Viseu (-16%), Castelo Branco (-14%) and Santarém (-14%).
There were also reductions in the stock of homes for rent in Leiria (-11%), Viana do Castelo (-11%), Lisboa (-10%), as well as in Porto (-8%) and Setúbal (-8%), confirming a widespread trend of supply contraction in the rental market at district and island level.
Supply of homes for rent by districts and islands
Change between Q4 2025 and the same period of the previous year (%)
Districts and islands | Change in supply
Madeira (Island) | 13%
Évora | 3%
Faro | 0%
Setúbal | −8%
Porto | −8%
Lisboa | −10%
Leiria | −11%
Viana do Castelo | −11%
Castelo Branco | −14%
Santarém | −14%
Vila Real | −16%
Viseu | −16%
Braga | −17%
Coimbra | −24%
Aveiro | −27%
São Miguel (Island) | −27%
Guarda | −35%
Table: idealista/news
Source: idealista
Created with Datawrapper
Methodology
The data presented were collected and analysed by idealista/data, idealista’s proptech division that provides information aimed at industry professionals to support strategic decision-making in Portugal, Spain and Italy. idealista/data is based on an extensive proprietary database and also draws on public and private data, offering valuation, investment, property acquisition and in-depth market analysis services.