23,637 new rental contracts were signed at the end of 2023, 4.5% more compared to the same period of the previous year. Meanwhile, house rents accelerated by 11.6% in this period, a higher year-on-year variation compared to that observed in the previous quarter (10.2%) and the highest since 2020.

The median rent for these contracts reached 7.71 euros/m2 in the fourth quarter of 2023, the highest price in the last four years. This value represents an increase of 11.6% compared to the same period last year, and “this variation is also the highest since the first quarter of 2020”, highlights the Portuguese statistics office. “Relative to the previous quarter, the median income of the fourth quarter of 2023 increased by 6.6%”.

Where have house rents risen the most?

Looking at the country's sub-regions, INE concludes that house rents rose in all territories year-on-year, with the exception of the Autonomous Region of the Azores (- 3.2%). “The Autonomous Region of Madeira (23.3%) and Terras de Trás-os-Montes (23.0%) stood out, with the largest year-on-year variations, exceeding 20%”.

Also in relation to the previous quarter, houses for rent became more expensive in 22 of the 26 sub-regions, with the biggest increase being recorded in Terras de Trás-os-Montes (27.8%). It should also be noted that house rents also increased in the Setúbal Peninsula (6.5%), Porto Metropolitan Area (4.7%), and Greater Lisbon (1.0%).

Unsurprisingly, the highest median rents were recorded in Greater Lisbon (12.54 euros/m2), Setúbal Peninsula (9.65 euros/m2), Autonomous Region of Madeira (9.30 euros/m2), Algarve ( 9.09 euros/m2) and Porto Metropolitan Area (8.64 euros/m2). The most affordable is found in Trás-os-Montes.