With the cost of home loans escalating, purchasing power reduced by high inflation and house still rising, more and more families are choosing to take refuge in the rental market. But here too there is a lack of housing supply to meet the demand for rental homes, a reality that the Government wants to change with the Mais Habitação programme that is under parliamentary discussion, and aims to generate more affordable housing. So far, this market imbalance has continued to put pressure on house prices for rent in Portugal, which showed a 6.1% rise in the second quarter of 2023 compared to the previous quarter. Renting a home in the country had a median cost of €14.5 per square metre (€/m2) at the end of June, according to Idealist's price index. In relation to the monthly variation, the increase was 2.5%.
House rents have become more expensive in almost all major cities
In the second quarter, the price of houses for rent rose in almost all of the country's district capitals with representative samples, with Coimbra (11.9%) leading the list. They are followed by Madeira Island (10.6%), Évora (9.7%), Faro (7.4%), Aveiro (7.3%), Setubal (4.5%), Lisbon (4%), Leiria (3.4%), Porto (3.4%), Braga (2.5%) and Castelo Branco (0.9%). In the opposite direction, prices fell in Viseu (-10.1%) and Viana do Castelo (-0.7%).
Lisbon remains the city where it is most expensive to rent a house: 20 euros/m2. Porto (15.3 €/m2) and Funchal (13.3 €/m2) occupy the second and third places, respectively. This is followed by Faro (10.9 €/m2), Aveiro (10.9 €/m2), Setúbal (10.8 €/m2), Évora (10.8 €/m2), Coimbra (9.5 €/m2) and Braga (8.3 €/m2).
The most economical cities to rent a house in the country are Castelo Branco (5.8 euros/m2), Viseu (6.1 euros/m2), Leiria (7.9 euros/m2) and Viana do Castelo (7.9 euros/m2), shows the same price index of the idealist.
Rental house prices soar on Madeira island - and beyond
Of the districts and islands analysed, rental house prices only fell in Viseu (-5.6%), Aveiro (-2.2%) and Viana do Castelo (-1.8%). In Santarém (0.4%),house rents remained broadly stable between the second quarter of 2023 and the previous quarter.
On the other hand, houses placed on the rental market rose in Madeira Island (18.2%), Évora (15.4%), Coimbra (15.3%), Vila Real (13.4%), Faro (7.3%), Braga (5.9%), Lisbon (4.9%), Setúbal (4.7%) and Porto (4.3%). The smallest increases inhouse rents took place in Leiria (2%), Portalegre (3.8%) and Castelo Branco (4.1%).
Unsurprisingly, the ranking of the most expensive districts to rent a home is led by Lisbon (18.1 €/m2), followed by Porto (13.4 €/m2), Madeira Island (13.1 €/m2), Faro (12.8 €/m2), Setúbal (11.5 €/m2), Évora (9.9 €/m2), Coimbra (9.2 €/m2) and Leiria (8.7 €/m2). The cost of renting a house in Braga was €8.3/m2 at the end of June, in Aveiro €8.3/m2, and Viana do Castelo €8.0/m2.
The cheapest prices to rent a houseware found in Viseu (5.9 €/m2), Portalegre (6.1 €/m2), Vila Real (6.2 €/m2), Castelo Branco (6.3 €/m2) and Santarém (7.1 €/m2).
Rental homes more expensive in all regions
During the second quarter, rental prices rose in all regions of the country. The Autonomous Region of Madeira (18.5%) led the increases in rents, followed by the Alentejo (7.6%) and the Algarve (7.3%). This was followed by the Lisbon Metropolitan Area (5.1%), the North (4.4%) and the Centre (3.7%).
Lisbon metropolitan area, at 17.3 €/m2, remains the most expensive region to rent a home, followed by the Madeira autonomous region (13.1 €/m2) and Algarve (12.8 €/m2).
On the opposite side of the table are the Centre (€8.2/m2), Alentejo (€9.4/m2) and the North (€12.2/m2), which are the cheapest regions to rent a house.
Idealista property price index
To produce idealista's property price index, the offer prices (based on the square metres built) published by idealista's advertisers are analysed. Atypical adverts and those with out-of-market prices are removed from the statistics.
We also included the typology "single-family houses" and discarded all adverts that are in our database and have not been interacted with by users for some time. The final result is obtained by taking the median of all valid adverts in each market.
*The Autonomous Region of the Azores was not included in the Idealist rental price index for the second quarter of 2023 due to the lack of representativeness of the sample.
The full report can be found, in portuguese, at: https://www.idealista.pt/media/relatorios-preco-habitacao/arrendamento/
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.
