The price of renting a property in Portugal is rising thanks to growing demand in the sector and making purchasing a property for rent in the country a sound investment for the future.

The price of rent in Portugal has risen on average by some 13% between January and March 2018 and this trend looks to continue across the country, particularly in the hotspots of Lisbon, Porto and Algarve.

Rental price rises have now demonstrated the “strongest increase over the past eight years” according to the latest Residential Income Index released by Confidencial Imobiliário.

The index has been tracking rental prices for the past eight years and the figures recorded over the first three months of the year reflect a “trend in growth which has been occurring since 2016 and that has intensified over the past year which has seen increases always around the 10% mark” according to the index.

Lisbon and Porto have seen the biggest price hikes for rental over the first quarter with increases of 20% in both cases when compared to the same period last year.

According to the latest figures from the report, up until the middle of 2014, rent for residential properties in Portugal had seen a steady successive decline year on year, with a cumulative decrease of 14% between 2010 and mid-2014, when rental income reached its lowest point.

Since mid-2014 prices have risen thanks to a steady increase in demand which has finally led to a cumulative recovery of more than 24% this year.

Ricardo Guimarães, the director of Confidencial Imobiliário said: “The trend for residential rent increases in Portugal is mainly due to a market where demand for rental housing continues to grow while there is still no response in supply, which has been declining for a long time”.

He added that it was highly “unlikely” that the imbalance between supply and demand would be met in the short term and that because of this it is likely that rental prices will continue to increase.

Investors who are considering purchasing a property in Portugal and are looking for a return on their income could now seriously consider long term rental agreements as a way in which to secure an income on their property.

To find out more about buying to let in Portugal or other opportunities for property owners, contact us by This email address is being protected from spambots. You need JavaScript enabled to view it. or telephone us at (+351) 282 356 952.