idealista shares that the rental market in Portugal has presented a greater balance between demand and supply. As maintained by the prices of houses for rent remaining the same in February compared to the previous month.

This marked the second consecutive month in which the median cost of renting a house remained unchanged at €15.8 per square meter (euros/m2), in accordance with the Idealista price index. The stabilisation of housing rent occurred just a few months after the approval of the Mais Habitação, which suggests it may already be impacting the market.

In terms of quarterly variation, the increase in house rents was 2.8 percent and the annual increase was 18.3 percent.

Rent prices dropped in five district capitals during the month of February, with Faro (-5.5 percent) topping the list. Followed by Funchal (-5.1 percent), Leiria (-2.8 percent), Évora (-1.4 percent) and Aveiro (-0.9 percent). In Coimbra (0.4 percent) and Porto (0.2 percent), prices remained stable between January and February.

On the other hand, the prices of houses for rent increased in Santarém (2.3 percent), Setúbal (1 percent) and Lisbon (0.6 percent).

The city of Lisbon remains the most expensive to rent a house, with an average of €21.5 per square meter, Porto (€16.9/m2) and Funchal (€13.8/m2) in second and third place, respectively. Followed by Faro (€12.2/m2), Setúbal (€11.9/m2), Coimbra and Aveiro (€11/m2).

The most economical cities to rent a home are Santarém (€7.9/m2), Leiria (€8.2/m2) and Évora (€10.6/m2).

Among the 18 districts and islands analysed, house rents in February rose in Beja (6.8 percent), São Miguel (5.6 percent), Viana do Castelo (3.8 percent), Coimbra (2.3 percent), Braga (1.5 percent), Aveiro (0,8 percent) and Lisbon (0.6 percent). However, in Faro (0.2 percent), Porto (0 percent) and Setúbal (-0.2 percent) prices remained stable.

The prices of houses for rent in February decreased in Portalegre (-6.6 percent), Castelo Branco (-5 percent), Santarém (-4.1 percent), Madeira (-4.1 percent), Vila Real (-3.8 percent), Leiria (-2.8 percent), Évora (-2.8 percent) and Viseu (-1.5 percent).

The ranking of most expensive districts to rent a house is led by Lisbon (€19.7/m2), followed by Porto (€15.1/m2), Madeira (€13.7/m2), Faro (€13.3/m2), Setúbal (€12.6/m2), Coimbra (€10.1/m2), Évora (€10/m2), Beja (€9.3/m2), Leiria (€9.3/m2), São Miguel (€9.1/m2), Aveiro (€9.1/m2) and Braga (€9.1/m2).

On the contrary, Vila Real (€5.8/m2), Portalegre (€6.2/m2), Castelo Branco (€6.8/m2), Viseu (€7.3/m2) and Viana do Castelo are the most economical districts in terms of prices for renting a house.

During the month of February, prices of houses for rent also rose in the Autonomous Region of the Azores (3.6 percent), and in the Alentejo (3 percent). As for the Autonomous Region of Madeira (-4 percent) and the Center (-0.8 percent) prices dropped. In the Metropolitan Area of Lisbon (0.4 percent), Algarve (0.2 percent) and the North (-0.2 percent) house rents remained stable.