Renting an apartment in Lisbon is more expensive than it was a year ago, but the rise in prices is slowing down. In the second quarter of the year, rental prices in the Portuguese capital rose by 1.8% over the previous quarter and by 17% in counterpart terms. Increases were lower than those recorded in the first three months of the year, when rents soared by 4.6% in quarterly terms and 20% in counterpart terms.
According to data collected by the real estate databank Confidencial Imobiliário (Ci) about the Residential Rents Index (Índice de Rendas Residenciais or IRR) for the city of Lisbon, the quarterly variation dropped from 7.4% in the fourth quarter of 2017 to 4.6% in the first quarter of 2018 and, in turn, to 1.8% in the second quarter of this year. This slowdown can also be seen in counterpart terms: a year ago, rents had risen by 20% and now it’s 17%.
"However, this is already the eighth consecutive quarter in which annual increases in rents of housing in Lisbon is into double digits, the most significant growth of 22% being achieved in the second quarter of 2017," says Ci in a statement.
"This series of intensive rises in the last two years has put rents at an eight-year high, with the levels now reached 38% above those observed in 2010 (the base year of the IRR). Throughout this period, the lowest rental level was five years ago (in the second quarter of 2013), against which the present time shows a recovery of 71%," reads the document.
Rents up 14% in Greater Lisbon
In the Greater Lisbon area, rents increased by 14% year-on-year and 3% quarter-on-quarter, a similar growth to that of the previous quarter. According to Ci, "the contagion of rising rents in the capital to the rest of the region began to be visible especially in the last year, with the IRR showing year-on-year variations from 12% to 14% five consecutive quarters ago.”
At the national level on mainland Portugal, rental prices rose 11.2% in counterpart terms, having slowed by about 1.8% compared to the year-on-year variation recorded in the previous quarter. In quarterly terms, the rise was 2.4%, also below the 3.6% recorded in the first quarter.