Where rent is rising and falling fastest in Portugal

Portugal’s rental market has shifted sharply over the past 12 months, with rent prices no longer moving in a single direction. idealista’s latest price reports show double‑digit annual increases in some places, while other spots are seeing clear drops.

Places with the biggest rent increases

Places where rents have fallen most

All data is based on idealista's latest price reports for the rental market.

Portuguese locations with the steepest rent increases

Beja: Alentejo rents jump by almost a quarter

Beja, in the Alentejo, has recorded one of the strongest rent surges in the country. In February 2026, rents hit €11.7 m2, 24.2% higher than a year earlier.

At that level, an 80 m² flat would typically cost around €940 per month, bringing a traditionally more affordable interior area much closer to prices in some coastal and metropolitan markets.

• Long-term rentals in Beja

Beja Cathedral. Concierge.2C, CC BY-SA 3.0 Creative commons

Lagoa (Algarve): coastal demand keeps rents among Portugal’s highest

In the Algarve, Lagoa ranks among the most expensive rental markets in Portugal. idealista’s February 2026 data put average advertised rents at €15.4 per m², an annual rise of 17.9%

An 80 m² flat in Lagoa would now generally be advertised at about €1,230 per month, clearly above many interior districts and close to big‑city pricing. The figures reflect the influence of tourism, second‑home ownership and longer stays from international residents.

• Long-term rentals in Lagoa

Castelo Branco: Covilhã stands out in central Portugal

Castelo Branco district tells a more varied story, but with clear hotspots. In Castelo Branco city, average rents reached €8.3 per m², up 17.3% year on year, while Covilhã has moved even faster, reaching €8.5 per m² after a 23.5% annual increase.

However, it's worth knowing that Castelo Branco does remain one of the cheapest cities in Portugal to buy property in 2026.

• Long-term rentals in Castelo Branco

Castelo Branco Unsplash

At today’s levels, an 80 m² flat in Covilhã would typically be advertised for around €680 a month. A sizeable university population and relatively limited rental stock have helped push this interior city closer to national averages.

• Long-term rentals in Covilhã 

Covilhã. Crazy_Murdoc, CC BY-SA 3.0. Creative commons

Coimbra: student demand keeps rents elevated

Coimbra remains one of Portugal’s key university centres, and that continues to show up in its rental data.

In Coimbra municipality, average rents climbed to €11.9 per m², 16.9% higher than a year earlier. That implies roughly €950 a month for an 80 m² flat.

• Long-term rentals in Coimbra

Coimbra Unsplash

Along the coast, Figueira da Foz has also seen strong growth. Rents there rose 10.8% year on year to €9.6 per m², equivalent to about €770 per month for an 80 m² home.

• Long-term rentals in Figueira da Foz

Figueira da Foz Unsplash

Portuguese locations where rents are falling most

Guarda: nearly one‑fifth below last year’s peak

Guarda has shifted from steep increases to a clear correction. In February 2026, average rents stood at €6.3 per m², 7% lower than a year earlier.

The comparison with last summer is even more striking. Rental prices were at €7.8 per m² in June 2025, leaving current rents close to 20% below that level. For tenants, this means an 80 m² flat falling from around €620 a month at the peak to roughly €500 today.

• Long-term rentals in Guarda

Vila Real: northern city steps back from 2025 highs

Vila Real, in northern Portugal, is following a similar path. By February 2026, average rents in the province had eased to €7.1 per m², 6.4% lower than a year earlier. At that rate, a standard 80 m² apartment would cost about €570 per month, reflecting a clear step back from the highs reached in 2025.

Vila Nova de Milfontes, Beja Pexels

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