Most expensive places to rent in Portugal this autumn

Lisbon consolidates its status as the most expensive place to rent in Portugal, with three central parishes occupying the top positions. The country's rental market set a new record in October 2025, with the national median reaching €17 per m2. That puts a typical 80 m2 flat at around €1,360 and caps a year of faster growth at +5.7% to October, up from +4.1% a month earlier.

Key takeaways at a glance

• Portugal’s three most expensive areas overall are all in Lisbon city.
• Among cities, Lisbon remains Portugal’s priciest market, followed by Porto, with the Algarve and Madeira anchoring the next tier.
• Growth is uneven: the Algarve is accelerating, while Lisbon and Porto are rising at steadier single-digit rates.

The most expensive cities to rent in Portugal — October 2025

The national picture is clear: Lisbon leads, Porto follows, and two Atlantic-facing cities round out the top tier. 

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1. Lisbon: €22.8/m2 (~€1,824/month). The most expensive place to rent in Portugal is in Lisbon, with an average rental price of €29.2/m2.
2. Porto: €18.3/m2 (~€1,464/month). The city’s core still commands notable premiums over outlying parishes.
3. Faro: €15.8/m2 (~€1,264/month). The city's rise in prices reflects tight coastal supply and seasonal demand rolling over into longer lets.
4. Funchal (Madeira): €15.7/m2 (~€1,256/month). Island constraints, tourism and relocation demand are keeping prices elevated.

Where rents are rising fastest 

Faro, the Algarve capital, is one of the fastest climbers year-on-year, up 19.6%.

In terms of regions, Alentejo, up 16.1% year on year, followed by the Centre (+11.3%), the Azores (+10.9%) and the Algarve (+10.6%). 

The Lisbon Metropolitan Area and the North both climbed 4.9%, while Madeira posted a 4.5% increase.

Prime hotspots driving prices

Portugal's capital city contains Portugal’s three most expensive areas overall, underpinned by renovated historic stock, fast-rising luxury rents, and strong corporate and foreign demand.

Lisbon. Pedro S Bello, CC BY-SA 4.0 Creative commons

Lisbon’s most expensive areas

1. Santo António: €29.2/m2 — Central parish spanning Avenida da Liberdade and Marquês de Pombal, with luxury retail, offices and strong metro connectivity.
2. Santa Maria Maior: €28.9/m2 (up 9.7% year-on-year) — The historic core covering Baixa, Alfama, Sé and Castelo, with dense heritage buildings and heavy year-round tourism.
3. Misericórdia: €27.6/m2 — Encompasses Chiado, Bairro Alto and Cais do Sodré, combining boutique apartments, river access and a busy dining and nightlife scene.

Beyond the city core, Lisbon district still shows elevated levels:

• Cascais e Estoril: €21.7/m2 — Coastal towns on the Cascais rail line with beaches, a marina and international schools, around 30–40 minutes from central Lisbon.
• Moscavide e Portela (Loures): €17.6/m2 — Next to Parque das Nações and the airport, with metro access and predominantly 1990s–2000s apartment stock.
• Oeiras: €17.3/m2 — Between Lisbon and Cascais, home to business parks and seafront neighbourhoods, well connected via the A5 and the coastal rail.

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Porto’s most expensive areas

1. Cedofeita–Santo Ildefonso–Sé–Miragaia–São Nicolau–Vitória: €21.6/m2 — Porto’s consolidated historic centre from Aliados to Ribeira, close to cultural landmarks and the CBD.
2. Bonfim: €19.9/m2 — East of the centre with metro links and proximity to Campanhã, drawing new residential projects alongside traditional housing.

Algarve’s high-cost pocket

• Loulé sits within the Algarve’s prime corridor, where winter lets, limited long-term stock and premium amenities support average prices of €17.3/m2.

Cheapest places to rent in Portugal

In contrast, the most affordable medians remain in the interior and parts of the North. Some of the cheapest municipalities to rent in Portugal in 2025 have average rental prices that are a quarter of those in Lisbon's priciest areas.

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• Bragança: €6.6/m2 — A sparsely populated corner of the northeast on the Spanish border, with longer distances to major urban centres keeping demand lower.
  • Long-term rentals in Bragança
• Guarda: €7.3/m2 — Mountainous Beira Interior territory near Serra da Estrela with cross‑border links via the A25; also flagged as a non‑representative sample.
  • Long-term rentals in Guarda
• Santa Maria da Feira: €7.4/m2 — An industrial municipality just south of Porto in Aveiro, well connected by the A1 and suburban rail.
  • Long-term rentals in Santa Maria da Feira

Affordability and alternatives in high-cost markets

A budget of roughly $2,000 per month can still work in the main cities, but compromises are common, and the cost of living comfortably in Portugal can vary widely.

In Lisbon, a studio or one-bedroom flat in near‑prime areas or flatsharing in the historic core helps manage costs. In Porto, similar strategies apply, with better value west of the centre or along well-connected corridors. The government has recently introduced 'moderate rents' as a way to tackle the housing crisis and keep rental prices down.

• Rooms for rent in Lisbon
• Rooms for rent in Porto

Total monthly outgoings also hinge on utilities, condominium fees and transport, and newer energy‑efficient buildings can reduce running costs even as headline rents run higher. Longer lease terms, unfurnished agreements and off‑peak move‑ins can improve negotiating room. 

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Methodology

Figures reflect median asking rents per m² for long‑term lets as of October 2025. These are calculated from advertisers’ listing prices based on the constructed area. Idealista excludes atypical or off‑market listings, includes single‑family homes, and removes adverts with prolonged periods of no user interaction. For full details, see the rental price index methodology and report: https://www.idealista.pt/en/press-room/property-price-reports/

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