The median asking rent across Portugal stood at €16.3 per square metre at the end of last month, representing a 2.4 percent decrease compared with the same period last year, and retreating from the record high of €17.0 per square metre, reached in October 2025.

This latest decline follows a series of year-on-year falls recorded since the beginning of 2026, with asking rents reducing by 1.9 percent in January, 1.4 percent in February, 1.2 percent in March, 2.7 percent in April, and 2.9 percent in May.

Regional markets

While rents have eased nationally, local markets continue to tell a different story, with demand pushing prices higher in many cities.

The data show that, of the 16 district and autonomous region capitals analysed, rents increased in 12, remained broadly unchanged in Aveiro, and declined in only three locations.

Bragança recorded the highest annual increase, with asking rents rising 20.5 percent, followed by Santarém and Funchal, both up 12.1 percent, and Viana do Castelo, where rents climbed 10.4 percent.

Furthermore, increases were also registered in Setúbal (8.3 percent), Castelo Branco (8.3 percent), Faro (7.0 percent), Évora (6.8 percent), Leiria (4.5 percent), Ponta Delgada (3.6 percent), Braga (2.9 percent) and Coimbra (1.3 percent).

By contrast, asking rents fell in Porto (7.3 percent), Viseu (3.1 percent) and Lisbon (1.8 percent).

Highest rental city

Despite the annual decline, Lisbon continues to lead the country in asking rents, at €21.8 per square metre, ahead of Funchal (€16.8/m2) and Porto (€16.4/m2).

These are followed by Faro (15.2/m2), Setúbal (€14.1/m2), Coimbra (€13.0/m2) and Évora (€12.7/m2).

At the more affordable end of the market, Viseu (€7.7/m2), Bragança (€7.5/m2) and Castelo Branco (€7.4/m2) remain the least expensive district capitals for tenants.

Performance by district

Across Portugal’s 20 districts and island regions, asking rents increased over the past year in 12 areas, remained stable in São Miguel and Viseu, and declined in six.

The largest annual rise was recorded in the district of Bragança, where rents surged 35.8 percent, followed by Madeira (10.5 percent), Viana do Castelo (8.2 percent), Évora (7.3 percent) and Santarém (7.2 percent).

Moderate growth was also reported in Castelo Branco, Portalegre, Setúbal, Aveiro, Beja, Braga and Leiria.

Meanwhile, the sharpest annual declines were seen in Guarda (23.0 percent), Vila Real (6.7 percent), Porto (5.8 percent), Coimbra (4.0 percent), Lisbon (1.7 percent) and Faro (1.1 percent).

Lisbon district remains Portugal’s most expensive rental market with median asking rents of €20.0 per square metre, ahead of Madeira (€15.9/m2), Faro (€15.5/m2), Porto (€14.9/m2) and Setúbal (€14.7/m2).

The most affordable districts continue to be Guarda (€6.0/m2) and Portalegre (€6.8/m2).

Posted declines

At regional level, asking rents rose in three of Portugal’s seven regions during the past 12 months, remained mostly unchanged in the Centre, and fell across the remaining three.

Madeira recorded the strongest annual growth at 10.3 percent, followed by Alentejo (10.2 percent) and the Azores (5.1 percent).

In contrast, asking rents declined in the North (6.4 percent), the Lisbon Metropolitan Area (1.3 percent) and the Algarve (1.1 percent).

The Lisbon Metropolitan Area remains the country’s most expensive region for renters, with median asking rents of €19.5 per square metre, followed by Madeira (€15.8/m2) and the Algarve (€15.5/m2). The North stands at €13.6/m2, while Alentejo averages €12.2/m2. The Azores (€10.7/m2) and the Centre (€10.3/m2) continue to offer the lowest regional rental costs.

Methodology

Idealista’s rental index is based on median asking prices per square metre published in property listings across Portugal. The methodology excludes atypical listings and properties priced outside normal market conditions and removes advertisements that have received no user interaction for an extended period. The index includes both apartments and detached houses and is calculated using the median value of all qualifying listings in each market.