Homes for rent are 1.2% more expensive in May
Renting a house is more expensive in 6 district capitals in May, with Funchal (5.3%) leading the list, a study by idealista shows.
At a time when buying a house using mortgage loans is increasingly less desirable given the rise in Euribor rates, changes in term limits depending on age and the fall in purchasing power due to inflation, the rental market becomes yet another option for Portuguese families. But like houses for sale, the price of houses for rent continues to rise, having jumped 1.2% in May compared to the previous month, data from the idealista price index show. Renting a house had an average cost of 11.2 euros per square meter (euros/m2) at the end of May. In relation to the quarterly change, the increase was 2.6% and the annual increase was 1.7%.
In which cities is it cheaper to rent a house?
In May, the price of houses for rent rose in six district capitals compared to the previous month, with Funchal (5.3%) leading the list. Aveiro (4.3%), Lisbon (2%), Porto (1.4%), Santarém (1.3%) and Leiria (1%) follow. On the other hand, house rents fell in Viseu (-9.5%), Coimbra (-4.5%), Ponta Delgada (-2.1%), Braga (-2%), Viana do Castelo (- 1.7%), Faro (-0.6%) and Setúbal (-0.6%). Lisbon continues to be the city where it is most expensive to rent a house: 14.2 euros/m2. Next are Porto (11.1 euros/m2) and Funchal (10.3 euros/m2), which occupy the second and third places, respectively. Next are Faro (9 euros/m2), Aveiro (8.6 euros/m2), Setúbal (8.5 euros/m2), Coimbra (7.5 euros/m2) and Ponta Delgada (6.8 euros/m2 ). The cheapest cities to rent a house are Viseu (5.1 euros/m2), Santarém (5.6 euros/m2), Viana do Castelo (6.1 euros/m2), Leiria (6.4 euros/m2 ) and Braga (6.5 euros/m2).
Rents are 1.8% more expensive in the Lisbon district and -0.1% cheaper in the Porto district
Of the analyzed districts and islands, the prices of houses for rent rose in Faro (3.9%), Santarém (3.2%), Vila Real (3%), Castelo Branco (2.5%), Madeira Island ( 2.4%), São Miguel Island (1.9%), Lisbon (1.8%), Leiria (0.9%) and Setúbal (0.7%). On the other hand, house rents dropped in Viana do Castelo (-3.5%), Coimbra (-2.95), Braga (-1.9%), Viseu (-0.6%), Aveiro (-0.3%) and Porto (-0.1%). The ranking of the most expensive districts to rent a house is led by Lisbon (13.4 euros/m2), followed by Faro (10.9 euros/m2), Porto (9.9 euros/m2), Madeira Island (9, 7 euros/m2), Setúbal (9.1 euros/m2), Viana do Castelo (7.2 euros/m2), Coimbra (7.2 euros/m2) and Ilha de São Miguel (7.2 euros/m2) . Next comes Aveiro (6.9 euros/m2), Leiria (6.8 euros/m2), Braga (6.7 euros/m2). The cheapest prices to rent a house in May are in Vila Real (4.4 euros/m2), Viseu (5.1 euros/m2), Castelo Branco (5.5 euros/m2) and Santarém (5.7 euros/m2).
House prices for rent rise in most Portuguese regions
During the month of May, the prices of houses for rent dropped in only two regions. Leading the decline is the North (-0.6%), followed by Alentejo (-0.2%). On the other hand, rents rose in the Algarve (3.9%), in the Autonomous Region of Madeira (2.5%), Lisbon Metropolitan Area (1.7%), Autonomous Region of the Azores (0.5%) and Center (0.1%). The Lisbon Metropolitan Area, with 13.0 euros/m2, continues to be the most expensive region to rent a home, followed by the Algarve (10.9 euros/m2), the Autonomous Region of Madeira (9.7 euros/m2 ) and the North (9.2 euros/m2). On the opposite side of the table are the Center (6.6 euros/m2), the Autonomous Region of the Azores (6.9 euros/m2) and Alentejo (7.7 euros/m2) which are the cheapest regions for rent a house.
Idealista real estate price index
For the realization of the idealista real estate price index, the offer prices (based on the square meters built) published by idealista's advertisers are analyzed. Atypical advertisements with out-of-market prices are eliminated from the statistics. We also include the typology "single-family houses" and discard all ads that are in our database and that have been without any interaction by users for some time. The final result is obtained through the median of all valid ads for each market.