In an article published in the Expresso newspaper, there are currently 43,000 new homes in Portugal for rent. It seems it has become the preference of developers, who are opting to build new properties with the purpose of renting them out.

Quoting Miguel Kreiseler, the general manager of consultancy firm MVGM in Portugal: “The Portuguese residential market was able to resist the pandemic and the rentals have gained ground, with great pressure over the rents.”

Having analysed the impact of the pandemic on the real estate market, the consultants concluded that “this is the ideal time to build for rent”. As Kreiseler added: “A more dynamic rental market could, in the long run, make cities more populated and expand.”

This trend, however, could be the result of the current circumstances. Growth may halt when things return to a relative degree of normality, with the end of the end of the moratoriums (read more here), the erosion of prices in the residential market and inflation. 

Rental prices still falling
Compared to February last year, rental prices dropped by 3% across Portugal, according to the real estate portal Idealista. The average cost per square metre now stands at €11.1.

The most notable decrease was seen in Braga, in the north of Portugal, followed by Lisbon, Leiria, Porto and Faro, in the Algarve.

In absolute terms, the price per square metre is more expensive in Lisbon (€13), which is the only area above the national average. This is followed by Porto (€10), Faro (€9.1) and Setúbal (€8.5).

For expert advice and assistance in navigating the ever-changing scenario during the current situation, get in touch with the real estate experts at Algarve Home Sales here.