According to idealista, the rental market in Portugal remains dynamic, despite the scarcity of affordable housing. Data from the National Statistics Institute (INE) released this week shows that 25,472 new rental contracts were signed at the beginning of 2024, up 0.9% compared to the same period last year. However, given the lack of stock, homes are being rented at higher prices: rents rose again by 10.5% in this period, reaching 7.46 euros per square meter (euros/m2).

INE highlights that there was an “increase in rental activity ” in Portugal. This is because, in the first quarter of 2024, 25,472 new rental contracts were registered, a number 0.9% higher than that observed in the same quarter of 2023 (25,245 new contracts). More houses were also rented than at the end of 2023 – the quarterly increase was 7.8%.

This greater demand for houses to rent at a time when there is still a lack of supply at affordable prices resulted in a new rise in prices (albeit at a slower pace). “In the first quarter of 2024, the median rent of the 25,472 new rental contracts for family accommodation in Portugal reached 7.46 euros/m2”, highlights INE in the bulletin published this Thursday, June 27th, which released the data provisional data for the beginning of 2024.

This figure represents a year-on-year growth of 10.5%, lower than that observed in the previous quarter (11.6%) – in other words, rents rose again, but more slowly. However, compared to the previous quarter, there was a 3.2% drop in house rents.