More and more families are choosing to rent a house in Portugal, given increasing difficulty when it comes to getting a mortgage, but rental supply is still scarce in Portugal. This is why we have seen the increase in rental prices in Portugal month after month. If we look at the five-year horizon, the evolution is even more expressive: property rent increased by 49% between 2017 and 2022, standing at 6.52 euros per square metre in the last 12 months to December.
With cost of living in Portugal per month at an all time high, data from the National Statistics Institute in Portugal (INE), published on 29th March, reveal that housing rent in Portugal is in an upward cycle of evolution: the average rental value per square metre of new leases rose from 4.39 euros/m2 in the second half of 2017 (last 12 months) to 6.52 euros/m2 in the same period of 2022 (+49%).
So, how much is the average rental in Portugal? In other words, renting a flat with an average surface area in Portugal of 112.4m2 (according to the 2021 Census) costs 733 euros/m2, an amount almost 240 euros higher than that recorded in 2017 for a flat with the same surface area (494 euros/month). In absolute terms, it was in Cascais, Oeiras and Almada where housing rent rose the most, according to calculations by Jornal de Notícias based on INE data.
It is important to remember that the price of monthly rentals in Portugal is mainly explained by the imbalance between high demand and low supply. This high demand for houses for rent in the country arises not only because this market has become more attractive given the increase in the cost of housing loans due to the rise in interest rates, but also because more and more foreigners are renting houses in our country, such as digital nomads and immigrants.
Where is the highest demand for rental homes in Portugal? Lisbon and Porto outside the top 50
Living near major urban centres, where rents are more affordable, continues to be the main focus of rental searches in Portugal. Evidence of this is that the municipalities surrounding Lisbon (such as Barreiro, Vila Franca de Xira and Amadora) remain at the top of the list of the 50 most sought-after municipalities for renting homes in the second quarter of 2025. Lisbon and Porto themselves do not appear in this ranking, as demand pressure is more evenly spread across the available rental proper
The 25 cheapest municipalities to rent a home in Portugal in 2025
A quick look at the rental map of Portugal reveals clear differences in prices across the country in the second quarter of 2025. The cost of renting a home ranges from a high of €22.2 per square metre (€/m²) in Lisbon to a low of €6.8/m² in Castelo Branco. Using data from idealista, Portugal’s leading property marketplace, we reveal the 25 cheapest places to rent a home in the country.
Lisbon long-term rentals: a guide to finding your ideal home in Portugal’s capital
Lisbon has become one of Europe’s most sought-after cities for long-term living. With its rich history, vibrant culture, and stunning coastline, Portugal’s capital offers a high quality of life that attracts expats, digital nomads, and retirees alike. If you’re considering a long-term rental in Lisbon, this guide will help you navigate the market and find your perfect home.
Portugal ranks 8th for highest tourist accommodation prices in the EU
Portugal has risen from 10th to 8th place among EU countries with the highest overnight prices in 2024. It ranks 13th out of 43 countries.
Top 10 cheapest municipalities for renting a house in Portugal in 2025
There has been much discussion about the rising cost of house rentals in Portugal, with prices often seen as incompatible with family incomes. However, this reality is mainly confined to certain areas of the country, particularly in large urban centres and their outskirts. In fact, there are municipalities where rental prices can be as low as 300 euros per month. In this article, discover the 10 most affordable municipalities to rent a house in Portugal.
Rent payment protection insurance: 6 tips for choosing the best option in Portugal
The best way for landlords to protect their rental income is by taking out a good rent payment default insurance. However, before doing so, it is important to understand which essential aspects the insurance should have to be effective. In this article, we explain how landlords can choose the right rent payment protection insurance, which will help mitigate risks in renting out the property to tenants.
