“As we have already seen in the long-term rental stock, the measures implemented in the housing sector appear to be having an impact on the rental market, with a significant increase in the supply of homes for rent in Portugal”, as is the case with restrictions on Accommodation Local, the end of the Non-Habitual Residents (RNH) regime and the reduction of income taxes”, says Ruben Marques, idealista spokesperson.

And the most recent data from idealista suggests that “owners seem to find temporary rentals an attractive alternative to Local Accommodation, aiming to optimise financial returns and adapt to the changing dynamics of the real estate market”.

Looking at the 20 Portuguese district capitals, it appears that the supply of houses offered for short-term rental has increased in 11 large cities, many where this type of rental was practically non-existent until now. The presence of advertisements for houses to rent for short periods experienced significant increases in Vila Real (200%), Guarda (100%) and Leiria (100%) in the last quarter of 2023 compared to the same period last year.

The supply of houses for temporary rental also increased in the cities of Braga (93%), Évora (75%), Lisbon (68%), Viseu (50%), Setúbal (46%), Coimbra (35%), Faro ( 29%) and Ponta Delgada (29%). There were also four cities where supply stagnated and five where it fell, with Beja leading the declines.