The rental market remains buoyant in Portugal. But the lack of supply to meet the high demand has increasingly pushed up house prices. That's exactly what the data from the National Statistics Institute (INE) shows: house rents rose by 10.6% between the fourth quarter of 2022 and the same period last year, standing at 6.91 euros per square meter (euros/m2) at the end of last year. And business has also been reflecting this imbalance in the market: the number of new rental contracts fell by 3.3% compared to the same period in 2021.

"In the fourth quarter of 2022, the median rent of the 22,628 new family housing leases in Portugal reached 6.91 euros/m2. This figure represents an increase of 10.6% compared to the same period in 2021, and is the highest year-on-year change since the second quarter of 2021," INE points out in the bulletin published this Wednesday, March 29. Compared to the previous quarter, the median rent increased by 5.3%.
The rise in rental house prices is mainly justified by the law of supply and demand. In other words, as there is a short supply of houses to rent in Portugal, and interest is growing, prices are rising. It is precisely with the aim of increasing the number of homes for rent that António Costa's government has designed several measures in Mais Habitação (More Housing), which will be approved by the Council of Ministers this Thursday.

The fact that there is a lack of rental housing stock may also help to explain the limitations on business in this market. The most recent INE figures show that a total of 22,628 new rental contracts were signed at the end of 2022, which represents “a decrease in rental activity of -3.3%” year-on-year. Compared to the previous quarter, the decrease in new rental contracts was even more significant (-6.5%).





Source: Idealista/News
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