Barbara Queiróz Updated: March 30, 2026
Portugal’s rent prices reached 2.24 percent in 2026 due to inflation. But if a landlord hasn’t raised the rent in the past three years, they can apply the accumulated coefficients—so the rent could rise by over 11 percent.
The rental market in Portugal offers steady demand with a booming tourism industry. The average national monthly rents are €713–€898 for a one-bedroom apartment and €1,153–€1,515 for a three-bedroom apartment.
In this guide to Portugal rent increase, we will take a look at the latest statistics, market data, and the causes of the remarkable surge in monthly prices. We have also included reports for Portuguese locations where rents have decreased the most.
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Key Takeaways about the Rise in Portugal Rent Prices
- Portugal's rental market keeps growing, showing yet another year of price increases, offering property owners a steady flow of income.
- In Q1 2025, the average house rental value grew 10% year-on-year, compared with the 9.3% rise in Q4 2024, reaching a national average rent of 8.22 €/m² for new leases.
- The Portuguese housing market offers the highest ROI for buy-to-let in: Greater Lisbon (13.16 €/m²), Autonomous Region of Madeira (10,44 €/m²), Setúbal Peninsula (10,24 €/m²), the Algarve (9,92 €/m²), and the Porto wider area (9.12 €/m²).
How much will house rent increase in Portugal in 2026?
As of 2026, the annual rent adjustment rate is 2.24 percent for existing lease agreements. But whether you choose to increase the rent for tenants, that is purely optional. Landlords can choose not to raise the rent or apply the increase at any time during the year, as long as they give tenants at least 30 days’ written notice, according to DECO PROteste.
In addition, rents that haven’t been updated in the past three years may see a much larger increase. Landlords can apply the accumulated coefficient rates, which could push rent up by more than 11 percent.
The table below provides data on the Portugal rent increase from 2016 to 2026:
Year | Rent increase (%) | Legal coefficient |
2026 | 2.24 | 1.0224 |
2025 | 2.16 | 1.0216 |
2024 | 6.94 | 1.0694 |
2023 | 2.00 | 1.0200 |
2022 | 0.43 | 1.0043 |
2021 | 0.00 | 1.0000 |
2020 | 0.51 | 1.0051 |
2019 | 1.15 | 1.0115 |
2018 | 1.12 | 1.0112 |
2017 | 0.54 | 1.0054 |
2016 | 0.16 | 1.0016 |
Portugal's Rental Market
The rental market in Portugal relies on the Consumer Price Index (CPI), which can fluctuate with current inflation rates. According to the National Statistics Institute of Portugal (INE), the CPI annual rate index was 2.6 percent in July 2025.
Every year, the Portuguese housing market is updated in accordance with the Novo Regime de Arrendamento Urbano (NRAU). For 2026, Notice No. 23174/2025/2, published in the Official Gazette on 19 September 2025, the maximum rent increase is set at 2.24 percent.
The Portugal real estate market offers high rental yields for landlords who want to earn a stable rental income. As of Q4 2025, the gross habitation yields are 5.2 percent for the Algarve region and 5.8 percent for both Greater Lisbon and the Porto Metropolitan Area.
Homes for rent in Lisbon, Portugal, can provide rental yields of 4.6 percent to 5.8 percent. Even though prices are higher than the national average, Portugal’s capital is still a profitable place to invest.
Regional Rent Price Differences in Portugal 2026
In the last 12 months, there was a sharp shift in the rental market with some areas experiencing double-digit annual increases, while others had their prices drop. Locations such as Beja (in Alentejo), Lagoa (in the Algarve), and Castelo Branco (in Central Portugal) have experienced the steepest increase in rental prices.
While Portugal continues to see rising rents, the Portuguese government has implemented policies that could lead to Portugal rental prices stabilization in the near future. Measures such as rent caps and regulatory adjustments aim to slow growth and create a more predictable market for tenants.
Under Portuguese law, there is an annual limit on the maximum increase in house rents. For 2026, the maximum rent increase is set to 2.24 percent.
Locations where Portugal rent prices rise in February 2026:
Location | Average rent (€/m²) | Average monthly rent for an 80 m² apartment (€) | Yearly increase vs February 2025 (%) |
Beja | 11.7 | 940 | 24.2 |
Covilhã (Castelo Branco) | 8.5 | 680 | 23.5 |
Lagoa (Algarve) | 15.4 | 1,230 | 17.9 |
Castelo Branco (city) | 8.3 | 660 | 17.3 |
Coimbra (municipality) | 11.9 | 950 | 16.9 |
Figueira da Foz (Coimbra) | 9.6 | 770 | 10.8 |
Locations where Portugal rental prices fell in February 2026:
Location | Average rent (€/m²) | Average monthly rent for an 80 m² apartment (€) | Yearly decrease vs February 2025 (%) |
Vila Real | 7.1 | 570 | 6.4 |
Guarda | 6.3 | 500 | 7.0 |
Portuguese Rental Market Trends: Best Regions for Rental Yields
According to the latest data from Portugal’s House Price Index (HPI), many regions have higher-than-average prices for short-term and long-term residential rental properties.
Annual rent increases occur because taxes, payroll, materials, and short- and long-term loans go up every year. So, property owners pass those cost increases onto their tenants. However, they must notify tenants with a written notice with each rent increase.
In Q1 2025, the highest rent values were recorded in:
- Greater Lisbon: €13.16/m2
- Autonomous Region of Madeira: €10.44/m2
- Setúbal peninsula: €10.24/m2
- Algarve: €9.92/m2
- Porto Metropolitan Area: €9.12/m2
For buy-to-let Portugal investors, these locations, especially coastal areas or central districts, offer ideal opportunities for high returns on investment.
Looking to invest in Portuguese property? Learn more in our ultimate guide.
Portugal's Rental Market Remains Attractive for Investors
Portugal has become one of the most attractive real estate markets in Europe for international investors. A stable economy, strong tourism demand, and excellent quality of life continue to attract buyers looking for long-term property investments.
Portuguese real estate has seen an increase in foreign investment from buyers in Europe, North America, and the Middle East. The Portuguese economy is heavily dependent on tourism.
Millions of tourists visit coastal areas like the Algarve and cities like Lisbon and Porto every year, boosting demand for lodging and rental properties.
However, if you plan to rent out your property in Portugal, you need to understand potential rent adjustments. The Portuguese government establishes a limit for annual rent increases for long-term residential properties, which for 2026 is capped at 2.24 percent.
Like other countries, Portugal offers short-term rental agreements and long-term lease contracts for property owners. A rental agreement is more flexible than a lease, and often renewed on a month-to-month basis.
On the other hand, a lease agreement is a fixed-term contract that can last six months, one year, or more. We highly suggest obtaining expert legal advice before signing any contracts. For more information on rental properties, check our ultimate guide to renting in Portugal.
Goldcrest: How We Can Help You
Goldcrest is a buyer’s agent that is based in Lisbon. We provide expert, impartial advice on real estate investments and how to buy property in Portugal. From scouting out the perfect property through to property acquisition, we have you covered throughout the process.
If you are looking to purchase property in Portugal, don’t hesitate to get in touch. Our team of skilled experts is available to solve all your real estate doubts, helping you with the property search and offering insightful expertise and strategic advice.
Why choose Goldcrest?
- Local knowledge: With offices located across Portugal, our presence nationwide allows us to assist you personally across the country.
- Independent service: As an independent buying agent, we do not represent any development or project. Our service is entirely tailored toward each individual client, providing you with everything you need to secure the perfect property at the best possible price. As an impartial advisor on the market, we work solely on behalf of our client and provide a service tailored to your needs and requirements.
- Streamlined process: Our real estate agents speak English and Portuguese, and our service is completely focused on providing you with a hassle-free buying experience, saving you time.
- Experienced team: Our expert real estate team has a vast local knowledge of the Portuguese property market. We have cutting-edge technology and metasearch tools at your disposal to provide full market coverage, ensuring the best investment choices and negotiated prices.
- Network of partners: We have a close network of partners, including lawyers, property management services, builders, architects, designers, and landscape gardeners, again saving you time and hassle by providing you with trusted experts in their field of work.
Frequently Asked Questions about Portugal Rent Increase
What is the rent adjustment for 2026 in Portugal?
In 2026, the official rent adjustment figure is 1.0224 (2.24 percent), slightly higher than the coefficient registered in 2025, which was 1.0216 (2.16 percent).
Are there limitations on rent increases in Portugal?
Yes, there is a limit on the rent increase of 2.24 percent for a new contract signed in 2026. Landlords can apply this higher price since January 1, 2026, or at any time during the year. However, by law, they must notify their tenants at least a month in advance.
How to calculate my annual rent increase in Portugal?
To calculate your annual rent increase in Portugal as a landlord, multiply your current monthly rent by the official coefficient published annually by the National Statistics Agency (INE). The maximum allowed rent increase is 2.24 percent (1.0224) for 2026.
What is the Portugal rental market news for 2026?
The latest increase in Portuguese house prices is pushing people to look for homes farther from Lisbon and Porto, mainly in the outskirts, where rents are below €1,000. The top municipalities with the most affordable rents and high demand are Covilhã, in the district of Castelo Branco (€568), Bragança (€619), and Castelo Branco (€620).
