Rental costs for Portuguese tenants are increasing at a slower pace since early 2025. January marked the most significant dip in growth in recent years, and February continued this trend of diminishing rent hikes.
The National Statistics Institute (INE) reports that the annual change in rent per square meter was 5.9% in February 2025, down from 6.5% the prior month; a bulletin released March 13th confirms this.
While rents haven’t decreased, the rate at which they are climbing has eased for two months straight. Throughout much of 2024, rental increases were consistently near 7%.
According to INE data, rent soared in every region. Madeira experienced the period’s most pronounced surge, at 7.6%. These figures reflect all active rental contracts, not just current deals.
Tenant’s average rent actually paid experienced a monthly increase of 0.5% in February (a 0.7% increase in January), further supporting this decelerating trend.
The INE notes that the North, West and Tagus Valley, Lisbon, and Setúbal Peninsula regions saw the largest monthly jumps of 0.5%; no region saw rental averages decrease.
