The rise in prices is slowing down: indicators suggest a drop in temperature.

Access to housing in Portugal is deteriorating. Families are finding it difficult to buy a home due to high prices, increased mortgage interest rates, and limited purchasing power. They are also struggling with renting, as rental prices continue to rise. This is evidenced by data from the Portuguese National Institute of Statistics (INE), published on Friday, December 22: the median rent increased by 10.5% in the summer of 2023 compared to the same period last year, reaching 7.25 euros per square meter (€/m2).

As a result, fewer rental agreements were concluded (-2%). However, compared to the previous quarter, the situation has changed: rental prices have slightly decreased, and the number of contracts signed has increased.

The INE data also shows that in the summer of 2023, the median rent increased in all 24 municipalities with populations over 100,000 compared to the same period last year, with the most significant increases recorded in Setúbal (+23.1%) and Lisbon (+20.9%). In total, in 18 municipalities, rental prices rose more than the national average.

In the third quarter of 2023, it was noted that five out of 25 subregions have rental prices above the national average, four of which also have higher annual changes compared to the overall figure for the country: Lisbon Metropolitan Area: rental price of €11.40/m² and a growth of 12.5%; Autonomous Region of Madeira (€8.79/m² and a growth of 16.4%); Portuguese Metropolitan Area (€8.22/m²; +12.4%); Litoral Alentejo (€7.47/m²; +15.3%); Algarve: despite the median rent being higher than the national average (€8.03/m²), the annual change was lower (+7.4%).

Compared to the same period last year, rental prices for housing have increased in all 25 subregions of the country, except for Alto Alentejo (-9.3%) and Alto Tâmega (-2.2%).

As in previous quarters, the subregion of Terras de Trás-os-Montes (2.64 euros/m²) ranked last in terms of new rental contract prices in the summer of 2023, notes INE. Compared to the previous quarter, rental prices increased in 13 out of 25 Portuguese subregions, with the institute highlighting the subregions of Litoral Alentejo (+12.7%), Central Alentejo (+12.1%), Baixo Alentejo (+11.6%), and Cávado (+11.3%).

On the other hand, the most significant decrease in rental prices was recorded in Terras de Trás-os-Montes (-11.4%) and Alto Alentejo (-10.2%).