Rental prices in Portugal have shown a slowing increase since the beginning of 2025. Following a significant deceleration in January, the rate of rent increases continued to decline in February.
Data from the National Statistics Institute in Portugal (INE) indicates that the year-on-year change in housing rents per square meter was 5.9% in February 2025, down from 6.5% the previous month, according to a bulletin released on March 13.
This indicates that while rental prices continued to rise in February, the rate of growth has slowed for two consecutive months. Throughout most of 2024, rental cost increases were approximately 7%.
All regions of Portugal saw year-on-year increases in housing rents, with Madeira experiencing the largest increase at 7.6%, according to the INE. These statistics are based on all active rental contracts, not just new agreements.
The average rent paid by tenants increased by 0.5% compared to January (0.7% the previous month), further supporting the trend of slowing growth.
The North, West and Tagus Valley, Lisbon, and the Setúbal Peninsula regions saw the largest monthly increases (0.5%), with no region experiencing a decrease in average rental value.
