The average price of rental property in Portugal now sits at €14.1/m2, with 8 out of 12 of Portugal´s district capitals seeing increases in rental costs. A quarterly jump of 5.3% was seen in rental prices, and there has been an annual rise of 26%.
8 of Portugal´s district capitals see an increase in rental prices
The biggest increase was noted in Coimbra, where prices rose by 4.7%. This was followed by Aveiro (4.2%), Setúbal (3.1%), Viana do Castelo (2.6%), Funchal (2.5%) and Lisbon (1.8%).
Rental prices in Porto remained stable during this same time period, and decreases in rental costs were observed in Leiria (-6.7%), Viseu (-3.6%), and Castelo Branco (-1.3%).
Lisbon remains the most expensive city to rent property, with prices averaging €19.6/m2. Porto followed, with prices at €15.2/m2, and Funchal came in third, where prices now average €12.8/m2.
The most economical places to rent property, with the lowest recorded average rental costs, were listed as Castelo Branco (€5.6/m2), Viseu (€6.2/m2) and Viana do Castelo (€7.7/m2).
Several districts saw an increase in rental costs in May
Of the 16 districts and islands analysed, average rental prices increased in 11. Coimbra saw the highest increase, at 5.6%, followed by São Miguel Island where prices rose by 4.4%. Other districts and islands that showed an increase in rental prices include Madeira (3.7%), Portalegre (3.2%), Castelo Branco (2.9%), Lisbon (2.1%), Braga (1.8%), and Setúbal (1.7%).
Average rental prices remained stable in Viseu, and decreased in Leiria (-2.1%), Vila Real (-1.2%), Aveiro (-0.6%) and Faro (-0.5%).
In terms of average price, the district of Lisbon comes top again at €17.7/m2, with Porto following at €13.1/m2, Madeira at €12.3/m2, and Faro at €12m2.
The cheapest areas to rent according to the index were Vila Real (€5.4/m2), Viseu (€5.7/m2), Portalegre (€5.9/m2) and Castelo Branco (€6.5/m2).
Rental prices rise in all regions except the Algarve
Overall rental prices across all regions rose, except in the Algarve where a drop of 0.5% was recorded. The Autonomic region of the Açores experienced the biggest increase at 6.6%, followed by Madeira (3.7%), the Lisbon Metropolitan Area (2.3%), the Alentejo (1,8%), Central Portugal (0.5%) and the North (0.5%).
Lisbon, unsurprisingly, ranks as the most expensive region to rent property at €17/m2, followed by Madeira (€12.2/m2), the Algarve (€12/m2) and the North (€11.9/m2). Conversely, Central Portugal was registered as the most economical region to rent property, with average prices coming in at (€8.1/m2). Average rental prices ranked second lowest in the Açores, sitting at €8.8/m2, followed by the Alentejo at €9.2/m2.