Latest Data Released: Median Rent for New Lease Agreements Rises 9.1% in the First Quarter
Compared with the first quarter of 2025, the number of new rental contracts increased by just 0.7%.
According to data released on Friday by Statistics Portugal (INE), the median rent for new residential lease agreements in Portugal reached €9.46 per square metre in the first quarter of 2026, representing a 9.1% year-on-year increase, up from 7.9% in the previous quarter. However, compared with the fourth quarter of 2025, the median rent declined by 3.3%.
INE also reported that 39,395 new lease agreements were signed during the first three months of 2026, representing a modest 0.7% increase compared with the same period last year. (The institute had not published this indicator for the previous 12 months.)
Across all regions analysed, median rents increased year-on-year. The regions with the highest median rents were: Lisbon Metropolitan Area (€14.38/m²), Madeira (€11.97/m²), Setúbal Peninsula (€11.35/m²), Algarve (€10.71/m²), Porto Metropolitan Area (€10.13/m²).
Among Portugal’s 24 municipalities with populations exceeding 100,000, all recorded year-on-year increases in median rents during the first quarter. Vila Nova de Famalicão posted the largest increase at 15.1%. Lisbon remained the country’s most expensive rental market, with a median rent of €17.42 per square metre. Across Greater Lisbon, all residential typologies monitored by INE—from studio apartments (T0) to four-bedroom units (T4)—recorded the highest rents nationwide.
In terms of leasing activity, Vila Nova de Famalicão registered a 13.4% increase in new rental contracts, while Oeiras recorded a 10.5% increase, both well above the national average of 0.7%. By contrast, new contracts declined by 9.0% in Seixal and 8.5% in Matosinhos.
Over the 12 months ending in March 2026, a total of 149,690 rental agreements were signed across Portugal, with a median rent of €9.50 per square metre, representing an 8.8% increase compared with the previous 12-month period ending in March 2025. Once again, the Lisbon Metropolitan Area, Madeira, the Setúbal Peninsula, the Algarve and the Porto Metropolitan Area all recorded median rents above the national average.
INE also noted that, over the 12 months ending in March 2026, the median rent for new lease agreements signed by households was €9.34 per square metre, lower than the €11.93 per square metre recorded for leases signed by tenants from other institutional sectors. This pattern was observed in 23 of the 24 municipalities with populations above 100,000.
Coimbra was the only exception, where the median rent paid by households (€9.32/m²) exceeded that of other institutional tenants (€9.10/m²).
After suspending the publication of local rental statistics for 12 months, INE explained that the renewed dataset has been made possible through new information provided by the Portuguese Tax Authority, together with a comprehensive review of its methodology and data processing procedures, resulting in more accurate and reliable rental market statistics.
The latest figures highlight that Portugal’s residential property market is increasingly being assessed not only by property prices, but also by its rental performance. As rental values continue to rise and long-term rental demand remains resilient, cities benefiting from sustained population growth, strong educational institutions and expanding employment opportunities are attracting growing attention from long-term investors.
Braga, one of Portugal’s leading university cities, is a good example of this trend. Supported by a growing international student population and the continued expansion of its technology sector, Braga’s rental market has remained active, providing a solid foundation for professionally managed long-term rental assets, including purpose-built student accommodation.
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