All regions registered growth over the previous year, according to the National Statistics Institute (INE) report. This ongoing rise in rental prices reflects sustained demand for housing across the country, driven by urbanisation, migration to cities, and population growth.

The housing market remains competitive, with many tenants facing increased financial pressure as rents continue to climb. Policymakers and housing advocates are closely monitoring these trends, as affordability becomes a central concern for residents in both urban and rural areas.

According to the INE, in March, “all regions showed positive year-on-year variations in housing rents, with Madeira registering the most intense increase (6.5%)”. This significant increase in Madeira may be attributed to heightened tourism activity and limited housing supply on the island, both of which commonly drive up rental costs. Other regions also saw notable gains, although none matched Madeira’s pace.

The differences among regions highlight the complexity of the national rental market, with local economic factors, employment opportunities, and infrastructure development all influencing rent trends.

In monthly terms, the average rent per square meter increased by 0.5%, compared to 0.6% the previous month. While this represents a slight slowdown in growth, it still signals persistent upward pressure on rental prices. Experts suggest that seasonal factors, such as the approach of warmer months and the beginning of new job contracts, may contribute to these monthly variations in the rental market.

Additionally, supply constraints and regulatory changes can also have a short-term impact on rent dynamics.

The regions with the highest positive monthly variation were the North, Centre, West, Tagus Valley, Setúbal Peninsula, Alentejo and Azores (0.6%), with no region showing a negative monthly variation in the respective average rent. This uniformity in positive growth across all surveyed regions underscores the broad-based nature of rent increases.

Regional disparities in income, job creation, and housing availability continue to shape the rental landscape, underscoring the need for stakeholders to consider both national averages and local realities when addressing housing affordability.