The rental market in Portugal may be at a turning point: the stock of Portuguese housing stock available for rent rose 55% in the fourth quarter of 2023 compared to what was available in the same period of 2022, according to a study by idealista.

“Some measures implemented in housing seem to be having an impact on the rental market, with a significant increase in the supply of houses for rent in Portugal” in the final stretch of 2023, said Ruben Marques, spokesperson for idealista. “The restrictions on Local Accommodation, the end of the Non-Habitual Residents (RNH) regime, penalties for vacant houses and the reduction in taxes on income may also be contributing to a reinforcement of the availability of properties on the market”, he adds, highlighting that, despite the current increase in supply, “rental prices remain high and beyond the reach of the majority of Portuguese”.

The demand for houses to rent also cooled down in the second half of 2023, with the number of new rental contracts slowing down, according to data from the National Statistics Institute (INE). High rents and the lack of houses to rent compatible with families' income may explain this fact, with some people choosing to share a house, rent a room or even return to their parents' house, or other family members.

The supply of housing available for rent in Portugal rose in 15 district capitals last year, with Viseu (115%) and Porto (113%) topping the list. In these cities, the number of houses for rent at the end of 2023 doubled compared to what was available in the same period in 2022.

There was also a significant increase in the supply of houses for rent in Braga (85%), Lisbon (63%), Castelo Branco (53%) and Guarda (50%). The list of increases in the stock of houses on the rental market continues with Setúbal (49%), Viana do Castelo (46%), Portalegre (40%), Santarém (39%), Aveiro (37%), Coimbra (35% ), Leiria (32%), Évora (22%) and Vila Real (18%).

On the other hand, there were also cities where the number of houses for rent fell compared to a year ago: this is the case of Bragança, where the supply decreased the most (-16%), followed by Ponta Delgada (-13%), Funchal (- 8%) and Faro (-1%).