Rental prices paid by tenants in Portugal have been on a decelerating trend since the beginning of 2025. After experiencing the sharpest slowdown in recent years in January, February saw another decline in the pace of rent increases.
According to data from the National Statistics Institute in Portugal (INE), "the year-on-year change in housing rents per square metre was 5.9% in February 2025 (6.5% in the previous month)," as stated in the bulletin published on Thursday, 13 March.
This means that while rental prices continued to rise in February, their growth rate has been slowing for two consecutive months. Notably, for almost all of 2024, the increase in rental costs hovered around 7%.
Geographically, "all regions recorded positive year-on-year variations in housing rents, with Madeira seeing the sharpest increase (7.6%)," the INE further reveals. It is important to note that these statistics consider all active rental contracts, not just new agreements.
Compared to January, the average rent actually paid by tenants increased by 0.5% (0.7% in the previous month), reinforcing the slowdown.
"The regions with the highest monthly increases were the North, West and Tagus Valley, Lisbon, and the Setúbal Peninsula (0.5%), with no region recording a negative variation in the average rental value," the institute highlights.
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