House rents continue to rise in Portugal, albeit at a slower rate, according to idealista, a Spanish real estate platform. In the second quarter of 2025, there was a 3.5% increase in the median cost of rents.
In the same period, each house for rent had an average of 17 people interested before it was taken off the market, according to the same source. This means that there were 45% fewer people interested compared to the same period last year, when the average was 32. This decrease may be the result of the greater dispersion in the supply of homes on the rental market.
“Despite a slight decrease in the number of enquiries since the beginning of the year, demand for adverts for rentals remains high. This slowdown does not necessarily reflect a drop in interest from families, but rather an increase in the availability of properties to rent,” said Ruben Marques, spokesman for idealista, adding that house rents remain high and “unaffordable for a large part of the Portuguese population.”
Portalegre was the Portuguese city with the highest demand for houses to rent in the second quarter of 2025, with each advert receiving an average of 53 enquiries. This was followed by Faro (33), Évora (32), Ponta Delgada (30), Santarém, Leiria and Setúbal (27 each), Funchal and Guarda (25), Castelo Branco (24), Vila Real (21), Beja and Bragança (20).
The cities with the least demand were Viseu (18), Aveiro (15), Braga (14), Lisbon (14) and Viana do Castelo (13), although Porto (8) and Coimbra (7) stood out. The lower demand for these cities may be the result of a greater supply of available homes in these markets.
Compared to the same period last year, there was a drop in demand in the cities of Coimbra (-73%), Porto (-62%), Viseu (-56%), Bragança (-51%) and Lisbon (-49%). Guarda, on the other hand, stands out from the other cities for having seen a 40% increase in the number of people interested in a rental advert. Apart from Guarda, only Funchal (7%) saw an increase in demand over the same period, although it was lower.
Prices stay strong despite reduced demand
Despite a significant decline in demand for the rental market in Lisbon, it continues to be one of the most expensive places to rent in Portugal.
According to idealista, average monthly rent in Lisbon is €1,751. Barreiro, Vila Franca de Xira and Amadora—municipalities in the Lisbon region—have a much lower average rental cost at €1,200 per month and are some of the most in demand areas.
Of the 50 most sought after municipalities in Portugal, 29 of them see average rental prices over €1,000 per month and eight of those pay an average higher than €1,500.
The five cheapest, coming in at under €750 per month are Covilhã, Bragança, Chaves, Castelo Branco and Figueira da Foz.
House prices continue to be higher in Lisbon
In the capital of Lisbon, house prices for renting and buying continue to be the highest compared to other cities in the country. On average, houses in Lisbon cost €650,000, according to data from May 2025, published by Portuguese real estate platform Imovirtual. This marks a 33% increase in pricing since May 2024, compared to an average income increase of 4% in the same period.
In the north of the country, Porto stands out as the city with the highest house prices, costing an average of €395,000 (+14%). Next come the districts of Braga and Aveiro, which reach €340,000 (+15%), and Viana do Castelo, where houses cost an average of €287,000 (+13%), reveals the same source.
In the big cities there is a notable high demand for rooms, given the prices of houses to rent and buy, particularly by university students. But the price of accommodation in the private sector has also been rising in recent years, making access to higher education more difficult. According to the latest Student Accommodation report published at the beginning of July by Portugal’s National Plan for Housing in Higher Education office (PNAES), the average monthly room price in the country is €415.
Among the main university cities, the capital, Lisbon, has the highest room rents in the private sector, with an average price of €500. In some parts of the city, rents can reach €714. This is followed by Porto with an average price of €400, Braga with €323 and then Coimbra, where rooms for students cost an average of €280.
