Portugal’s Soaring Rents: What Newcomers Will Pay from Lisbon to Viseu

Foreign professionals arriving in Portugal this autumn will quickly discover that the country’s long-celebrated affordability is fading, at least when it comes to rent. A nationwide median of 16.8 €/m² masks wildly different realities: Lisbon still commands record sums, Porto is catching up, and once-sleepy interior towns are turning into telework hubs. Policy turbulence in Lisbon’s parliament has added further uncertainty. Below is a deep dive into what newcomers can expect, why prices keep climbing, and where a euro now stretches furthest.

Why the hunt feels tougher than last year

In the space of 12 months, the asking price for a typical lease rose another 3.3 %, according to the August update from property portal Idealista. That figure may look modest beside the double-digit jumps of 2021-2022, yet it arrives after seven consecutive years of increases. Scarce inventory, foreign demand, post-pandemic relocations and a low construction rate continue to squeeze supply. The National Statistics Institute (INE) puts fresh contracts at 8.22 €/m² on average, but that dataset excludes renewals and luxury stock, so expats shopping online will almost certainly face higher quotes.

Lisbon and Porto: top billing, slower tempo

The capital remains Portugal’s priciest address at 22.2 €/m², which translates to roughly €1,700 for an 80 m² flat. Although year-on-year growth in Lisbon has cooled to about 2 %, locals still allocate an eye-watering 39 % of household spending to housing, far above the EU mean of 19 %. Porto, long marketed as the cheaper alternative, now averages 17.7 €/m² after a brisk 5 % lift in advertised rents over the summer, signalling that tech firms and digital nomads are firmly entrenched along the Douro.

Mid-size cities in the spotlight

Telework has redrawn the map. Viana do Castelo (+16.1 %), Viseu (+13.6 %) and Leiria (+12 %) booked the largest annual jumps, each still posting sub-€10 price tags per square metre but trending swiftly upward. Estate agents attribute the leap to Lisbonites purchasing second homes and then letting them, while local universities lure a growing international student crowd. Even with that surge, a 70 m² apartment in Viseu runs near €550, half the Lisbon equivalent. The trade-off is fewer English-speaking services and longer train rides to the coast.

Policies pushing and pulling the market

First came Mais Habitação in 2023, capping new lease prices to the previous rent plus 2 %, dangling IRS exemptions for affordable contracts and freezing fresh short-stay licences in tourist hotspots. Then, in 2024, the incoming government unveiled Construir Portugal, scrapping the planned forced letting of empty units and the special tax on Airbnb-style rentals, while promising to double the public housing stock by 2030. Analysts say the legislative tug-of-war produced regulatory noise that deterred some owners from listing properties, unintentionally tightening supply even further.

Budget check: what a foreign salary buys right now

A single software engineer earning €3,000 net can still secure a studio inside Lisbon’s metro ring, yet will surrender roughly 45 % of take-home pay to cover rent and utilities—well past the 30 % recommended threshold. Couples relocating to Porto find that €1,150 per month secures a modern T2 in Bonfim, while the same sum lands a spacious villa in Castelo Branco, Portugal’s bargain champion at 7 €/m². Remember that landlords typically request two months’ deposit plus the current month up front; agency fees add another hit.

Where the curve might bend next

Market intelligence firm Confidencial Imobiliário expects price hikes to moderate, citing a gradual rise in building permits and the rollout of tax carrots for long-term leasing. Yet without a construction boom—Portugal erected just 13,000 new homes last year, a fraction of the early-2000s peak—rents are unlikely to fall outright. For newcomers, the safest strategy is swift decision-making once a suitable flat appears and, if lifestyle permits, scouting Évora, Braga or Aveiro, where yields favour tenants over landlords—for now.