The latest figures suggest that renting in Portugal is getting cheaper overall. After several years of sharp increases, the market is beginning to cool. That said, the national average only tells part of the story.
The most recent data from idealista show significant variations between cities, districts and regions. In certain areas rents are still climbing, while in others they are steadily declining, creating a patchwork market that depends heavily on location.
Overview of rent prices in Portugal in May
At the country level, the rental market is in a period of price adjustment:
- Rents in Portugal fell by 2.9% in May compared with the same month of the previous year.
- This continues a run of four consecutive months of national rent decreases.
- The average rent price at the end of May was €16.3 per m2, meaning an 85 m2 apartment costs €1,385 per month.
- This moves further away from the national record of €17 per m2, or €1,445 per month, reached in October 2025.
Most expensive cities to rent in Portugal
Lisbon and other major urban areas still have the highest asking prices for tenants. Average rents per square metre are:
Larger cities
City | Average rent (/m²) | Estimated rent for 85 m² (per month) |
|---|---|---|
Lisbon | €21.8 | €1,853 |
Funchal | €16.9 | €1,437 |
Porto | €16.4 | €1,394 |
Faro | €14.6 | €1,241 |
Setúbal | €13.9 | €1,182 |
Évora | €12.9 | €1,097 |
Cities where rents are still rising
In most district or regional capitals, rents have increased over the last year. Out of 15 capitals analysed, 11 recorded annual rises:
City | Annual change in rent (%) |
|---|---|
Viana do Castelo | +17.5 |
Castelo Branco | +14.8 |
Faro | +11.2 |
Funchal | +10.8 |
Évora | +8.1 |
Ponta Delgada | +8.1 |
Setúbal | +6.9 |
Cities where rents are falling
Four of the 15 capitals saw annual rent declines:
City | Annual change in rent (%) |
|---|---|
Viseu | -8.4 |
Porto | -7.7 |
Lisboa | -2.7 |
Braga | -0.9 |
Cheapest cities to rent in Portugal
Among the main cities analysed, some stand out for lower rent prices, often found in the cheapest areas you can find for rent in Portugal:
City | Average rent (/m²) | Estimated rent for 85 m² (€ per month) |
|---|---|---|
Castelo Branco | €7.4 | €629 |
Viseu | €7.6 | €646 |
Leiria | €9.2 | €782 |
Santarém | €9.4 | €799 |
Districts and islands: where rents are going up and down
Parts of Portugal stand out in the rental market due to their rapid increase or decrease in price. At district and island level, the picture is similarly uneven:
- In the last 12 months, rents rose in 13 of the 19 districts and islands analysed.
- Rents fell in five territories: Guarda, Coimbra, Viseu, Porto and Lisboa districts.
What these rent trends mean for tenants and landlords
The latest idealista rental price index underlines several points:
- Nationally, renting a home in Portugal is cheaper than a year ago.
- Many large cities, districts and regions still show annual increases, including some double‑digit rises.
- Lisboa, the Área Metropolitana de Lisboa, Madeira and the Algarve remain among the most expensive places to rent.
- Districts such as Guarda, Portalegre and Viseu, and cities like Castelo Branco and Viseu, continue to offer some of the lowest advertised rents.
The index is based on advertised offer prices per built square metre on idealista. Final values are calculated using the median of all valid listings in each market.
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