This increase may or may not be applied by landlords and applies to residential and commercial rentals in urban and rural areas in Portugal. We have the details.
The coronavirus pandemic continues to have its effect on the global property market and we've already heard that rental prices will see slight rises in Portugal in 2022. But what exactly will these price rises look like? How much will rent go up by in Portugal? How much is the average rent in Portugal? We have all the details.
Rental price increases in Portugal
According to the Portuguese National Statistics Institute (INE), rental prices will rise by 0.43% in 2022 according to inflation figures for the last 12 months until the end of summer 2021. This increase in rental prices in Portugal in 2022 may or may not be applied by landlord, and applies to both residential and commercial rentals in urban and rural areas.
Rental price history in Portugal
When looking at the price history of rental prices in Portugal in recent years, it's important to note that this year in 2021, prices remained stagnant, after having risen in 2020 (0.51%), 2019 (1.15%), 2018 (1.12%), 2017 (0.54%) and 2016 (0.16%).
Updating of rents in optional for landlords
The updating of rents in Portugal is optional, and there are contracts, especially the most recent ones, that may foresee another updating regime, according to the Portuguese newspaper Público. There is also another exception: housing rental contracts prior to 1990, and commercial rental contracts prior to 1995, which have been integrated in the New Urban Rental Regime in Portugal (NRAU), under the new rent law, are still covered by the transitory regime, and the value of the rent cannot be changed.
According to the publication, for the great majority of the lease contracts, the update as of 2022 will be made based on the coefficient determined by INE, which will only become official after its publication, in the form of a Notice in the "Diário da República", which will occur until the end of October.
How much is the average rent in Portugal?
According to the latest data from the idealista price report, the average rent in Portugal stands at 10.9 euros/m2, with average figures of 9.8 euros/m2 in the Algarve, 12.7 euros/m2 in Lisbon and 10 euros/m2 in Porto. With the possible increases in 2020, someone who pays 300 euros of rent may therefore see this value updated to 301.29 euros, while someone who pays 700 euros may see a slight increase to 703.01 euros. A property for rent at 1,000 euros a month would therefore increase by 4.30 euros if a landlord chooses to apply the INE coefficient and increase your rent. This is according to calculations made by ECO, a Portuguese newspaper focused on the economy.