Discover Portugal's most expensive house for rent

Renting a house in Portugal continues to place an increasing strain on family budgets. Lisbon, unsurprisingly, stands out as the most expensive city in the country and even ranks as the third most expensive city in Europe (according to the British magazine The Economist), further intensifying the pressure on the property market.

In this article, we’ll explore where the most expensive rental properties are located in Portugal and what advantages these increasingly exclusive areas offer.

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Lisbon is not Paris, New York, or London, but it stands out as one of the most expensive cities to rent a home in Europe. This fact is even more surprising when comparing rental prices with the average salaries of the Portuguese, which have not kept up with this increase.

To live in the Portuguese capital, an annual income of $58,400 (54,000 euros) is required—$27,400 (25,300 euros) more than the average salary in Portugal. This disparity places Lisbon in third place among the most expensive European cities for renting a home, surpassed only by Budapest, Hungary, and Prague, Czech Republic. Some of the main factors explaining high rents in Lisbon are:

• Impact of digital nomads: The growing demand from workers in the tech and remote sectors, particularly from countries like the United States and Canada, has driven prices up;
• International appeal: Lisbon is trendy. It hosts major events like WebSummit and the Tribeca Festival. Add to that sunny weather, accessible visas, and a high quality of life;
• Limited supply compared to demand: The high demand for properties is not matched by the availability of enough housing;
• Top universities: Lisbon attracts thousands of local and international students to renowned higher education institutions, increasing demand for accommodation;
• International comparison: The Economist introduced the "Carrie Bradshaw Index," comparing rental costs in Lisbon with those of cities like New York, adjusted for local average salaries.

With rents challenging the budgets of most Lisbon residents and prices rivaling those of global metropolises, pressure on the rental market continues to be a growing concern. But where can you find the most expensive house in the country?

Where is the most expensive house for rent in Portugal?

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The most expensive house for rent in the country is located in Lisbon, more specifically in Parque de Palmela - Ribeira das Vinhas, and is available for an impressive 30,000 euros per month, leaving the competition far behind.

This is a fully renovated villa with the best materials and finishes, such as travertine marble and hijau stone, built on a 2,619m² plot in a very exclusive neighbourhood in the centre of Cascais, with an impressive sea view.

The villa is spread over three floors and an attic. On the ground floor, you'll find the entrance hall (30m²), living room (116m²), dining room (53m²), both with access to spacious terraces, a fully equipped gourmet kitchen, an office/suite, and a bathroom. There are also heated indoor and outdoor pools, perfect for making the most of both summer and winter.

If you find this hard to believe, see for yourself the listing for the most expensive rental property in Lisbon available on idealista.

What about the most expensive house to rent in the Algarve?

The south of the country is perhaps the must-visit destination during the summer and for those looking to enjoy good weather all year round. If you're searching for the epitome of luxury and charm in the Algarve, this stunning detached villa in Almancil, at Quinta do Lago, is perfect for you.

With 770m² of living space and located in the prestigious Encosta do Lago development, this 5+2 bedroom property combines sophistication, comfort, and well-being like few others.

idealista

Spread over two floors and a basement, this villa offers spacious areas bathed in natural light. On the ground floor, you will find two elegant living rooms, a dining room with access to the garden and heated pool, and a modern open-plan kitchen with an island—everything designed to provide maximum comfort.

Additionally, three en-suite bedrooms complete this floor. On the upper level, two bedrooms offer stunning views, while in the basement, there is a gym, sauna, Turkish bath, massage area, and service rooms—a true oasis of relaxation.

You’ll have easy access to golf courses, the Campus sports complex, and Quinta Shopping. The location is ideal, just 25 minutes from Faro Airport and two and a half hours from Lisbon. For 30,000€ per month, this is your opportunity to live the best that the Algarve has to offer.

Portuguese cities where rent is becoming more expensive

According to the idealista price index, renting a house in Portugal is becoming increasingly expensive, with significant price increases in several cities over the past year. Coimbra leads the rise with an increase of 14.6%, followed by Santarém (13%) and Setúbal (9.2%). Porto (7.3%) and Lisbon (6%) also saw notable growth, consolidating their positions as the most expensive rental markets in the country.

Lisbon remains at the top, with an impressive average price of 22.1€/m², followed by Porto (17.4€/m²) and Funchal (14.2€/m²). Other highlights include Faro (12.8€/m²) and Setúbal (12.1€/m²). On the other hand, Viseu (6.8€/m²) and Viana do Castelo (7.7€/m²) are the most affordable cities for renting a house.

Let’s face it: buying or renting a house in Portugal, especially in more exclusive locations like Lisbon or the Algarve, is far from an affordable option. Record rents reflect the growing demand for luxury properties, often driven by factors like tourism and supply shortages. For those seeking the best of the best, high prices are the cost of living in the country’s most desirable destinations.