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Investments in Portuguese Real Estate Remain Profitable Thanks to Rising Rental Prices
In the Q3 of 2024, rental prices in Portugal increased by 10.7%, reaching an average of €8 per square meter (€/m²) nationwide. The Lisbon metropolitan region remains the leader in rental rates, with costs at €13.53/m², 69% above the national average.
According to preliminary data from the National Statistics Institute (INE), the highest annual growth in rental prices during this quarter was recorded in Funchal at 25.9%. In Lisbon, despite having the highest average rent of €16.18/m², annual growth was only 3%, below the national average.
Rental price increases were observed in 24 municipalities with populations exceeding 100,000. High rental prices were particularly noted in Greater Lisbon (€13.53/m²), the autonomous region of Madeira (€10.66/m²), and the Setúbal Peninsula (€10.18/m²), underlining the investment appeal of these areas.
From July to September 2024, 23,684 new rental contracts were registered in Portugal, a 5% decrease compared to the same period in the previous year (24,921 contracts). This decline may be linked to supply shortages in the market, although some municipalities experienced an increase in new contracts. Notable growth was seen in Barcelos (9.7%), Seixal (7.6%), and Vila Nova de Famalicão (4.6%), where the rise in new contracts exceeded the national trend.
Rental prices in Lisbon and other popular areas of Portugal continue to climb, reaffirming the attractiveness of real estate investments. At the same time, supply shortages and regional disparities may limit further market growth. With high rental rates, particularly in Lisbon’s metropolitan region, and rising household incomes, real estate investments remain a profitable venture.
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