The rental market in Portugal gained strength in 2022, driven by high-interest rates on credit to buy a home. However, the imbalance between supply and demand for properties for rent has caused prices to increase by 20.2% in the space of one year.
According to Idealista's Annual Rental Report, rental prices in December rose in thirteen district capitals, with Porto occupying the top of the table, with rents rising by 37.7%.
In the list, follow Aveiro (37.1%), Lisbon (35%), Santarém (31.7%) and Funchal (29.6%), Ponta Delgada (27.5%), Viana do Castelo (20.9 %), Braga (17.6%), Leiria (17.3%), Setúbal (15.3%), Castelo Branco (14.7%), Coimbra (8.8%) and Faro (5.7%).
The capital of the country continues to be the destination where it is most expensive to rent a house, with the median cost per square meter reaching 18 euros. In second and third place in the ranking are, respectively, Porto (14.7 euros/m2) and Funchal (11.5 euros/m2).
Conversely, Castelo Branco (6 euros/m2), Leiria (6.8 euros/m2), and Santarém (6.8 euros/m2) are the most economical cities to rent in.
From a broader perspective, the rise in prices took place in all regions of Portuguese territory. At the top of the table, we see the Autonomous Region of Madeira (26.4%), followed by Área Metropolitana de Lisboa (25.7%) and North (23.6%).
As far as the final cost is concerned, the Lisbon Metropolitan Area continues to be the most expensive region to rent a property, with an average value per square meter of 15.6 euros. Close behind are the North (11.3 euros/m2), the Algarve (11.2 euros/m2), and the Autonomous Region of Madeira (10.8 euros/m2).
Finally, and on the opposite side, Centro (7.6 euros/m2), Autonomous Region of the Azores (7.6 euros/m2), and Alentejo (8.2 euros/m2) are the cheapest regions.
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