The Portuguese rental market experienced a slowdown in mid-2024, likely due to both a lack of available properties and new incentives for home purchases, such as lower interest rates or the IMT exemption for young buyers. This reduced activity in the rental market, alongside higher profitability for properties purchased to let and the arrival of new real estate developments on the market, may help explain why the supply of rental properties in Portugal increased by 59% at the end of 2024 compared to what was available during the same period in 2023, according to data analysis by idealista, the leading real estate marketplace in southern Europe.
Supply of rental homes rises in nearly all major cities
Among the 18 district capitals analysed (with representative samples), the stock of rental homes increased in 16 cities. Aveiro led the surge in housing rental supply over the past twelve months, recording a significant rise of 111%.
There are also more rental homes available in Braga (80%), Lisbon (72%), Faro (72%), Leiria (70%), Funchal (66%), Porto (63%), and Coimbra (59%). Cities with annual supply increases below 50% include Viana do Castelo (44%), Setúbal (43%), Bragança (38%), Castelo Branco (28%), Santarém (24%), Beja (14%), Vila Real (12%), and Guarda (11%).
The only two cities where the number of available rental homes decreased were Portalegre (-14%) and Ponta Delgada in the Azores (-5%).
Rental supply increases in 16 districts/islands
The trend is similar across Portuguese districts and islands: over the past year, the number of homes available for rent increased in 17 out of 18 regions, with Aveiro experiencing the most significant rise (+85%).
The list of districts and islands with the largest increases in rental housing supply includes Viana do Castelo (79%), Beja (76%), Braga (65%), Porto (64%), Faro (63%), Leiria (60%), Coimbra (60%), Lisbon (58%), Castelo Branco (51%), Santarém (49%), Madeira Island (46%), Setúbal (38%), Vila Real (35%), Guarda (29%), Portalegre (29%), and Bragança (12%).
Conversely, the stock decreased on São Miguel Island (-80%), the only district or island analysed where fewer homes are available for rent during this period.
Methodology
Data collected and analysed by idealista/data, the proptech division of idealista, which provides information aimed at a professional audience to support strategic decision-making in Portugal, Spain, and Italy. It uses all parameters from idealista’s database in each country, as well as other public and private data sources, to offer services in valuation, investment, property acquisition, and market analysis.
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