Evolution of Leasing in Portugal, House Leasing

Evolution of House Lease in Portugal

Let's look at the evolution of the rental of houses in Portugal from 2018 to the 2nd quarter of 2021. We present the number of new lease contracts signed, as well as the rent values ​​in euros per square meter and related to family accommodation.

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New Lease Agreements by Region

According to data from the National Institute of Statistics – INE, comparing the number of new lease contracts, in homologous semesters, we verified a decrease of 10,4% from the 1st semester of 2018 to the 1st of 2019, an increase of 3,8% in the 1st semester of 2020 compared to the previous year and an increase of 15,8% in the 1st half of 2021 compared to the previous one, surpassing the number of new lease contracts entered into in the same semester of 2018. A difference of 7,6%.

Table 1 - New lease agreements for family accommodation in the last 12 months by Region, Geographical location (NUTS - 2013); Semester; Source INE, 23 September 2021

New lease agreements1st Without 20211st Without 20201st Without 20191st Without 2018
Portugal85803740887136979723
Continent83025717806923277466
North26291226632194224746
City Center18180164321567917304
Lisbon Metropolitan Area29062241852356226577
Alentejo4412417139654422
Algarve5080432940844417
Autonomous Region of the Azores1441117411361162
Madeira Autonomous Region1337113410011095

In the 1st semester of 2021 and in relation to the 1st semester of the previous year, the number of lease contracts increased in all regions of the national territory.

Table 2 - Percentage change in new family accommodation lease contracts; Semester; Source INE, 23 September 2021

Percentage change in the number of contracts compared to the previous semester1st Without 20211st Without 20201st Without 2019
Portugal15,8%3,8%-10,5%
Continent15,7%3,7%-10,6%
North16,0%3,3%-11,3%
City Center10,6%4,8%-9,4%
Lisbon Metropolitan Area20,2%2,6%-11,3%
Alentejo5,8%5,2%-10,3%
Algarve17,3%6,0%-7,5%
Autonomous Region of the Azores22,7%3,3%-2,2%
Madeira Autonomous Region17,9%13,3%-8,6%

In the 1st half of 2021, the Autonomous Region of the Azores, the Metropolitan Area of ​​Lisbon (AML), the Autonomous Region of Madeira, Algarve and Norte were those that grew above the national average and the Alentejo had the least significant increase in the number of contracts for rental of houses, 5,8%.

Median Family House Income Values ​​by Region

As for the values ​​of rents per square meter of family accommodation, there is a generalized increase throughout the national territory between the 1st semesters of 2018, 2019, 2020 and 2021. In the Autonomous Region of Madeira, in the 1st half of 2020, the value of renting houses decreased to €5,98/m2 compared to the previous semester and rose again to €6,15/m2 in 2021.

On the other hand, in the Azores Region, the lease value decreased by 0,5% to 3,95€/m2 in the 1st half of 2021.

Table 3 - Median value of rents per m2 in new family housing lease contracts, by Region, Geographical location; Semester; Source INE, 23 September 2021

Median value of rents per m2 of new lease agreements1st Without 20211st Without 20201st Without 20191st Without 2018
Portugal 5,82 € 5,47 € 5,00 € 4,58 €
Continent 5,85 € 5,49 € 5,00 € 4,58 €
North 5,00 € 4,72 € 4,36 € 3,96 €
City Center 4,12 € 3,98 € 3,75 € 3,53 €
Lisbon Metropolitan Area 8,68 € 8,42 € 7,54 € 6,50 €
Alentejo 3,91 € 3,77 € 3,55 € 3,42 €
Algarve 6,74 € 6,54 € 5,93 € 5,27 €
Autonomous Region of the Azores 3,95 € 3,97 € 3,85 € 3,57 €
Madeira Autonomous Region 6,15 € 5,98 € 6,00 € 5,32 €

In relation to the average value of house rents in Portugal, AML is the one with the highest rental value, 8,68€/m2

In terms of percentage change, the North region and Alentejo have the highest percentage increase of 5,9% and 3,7% respectively.

Table 4 - Variation of rents in % of new lease agreements of family accommodation by Region, Geographical Location; Semester; Source INE, 23 September 2021

Percentage change in rents compared to the same period of the previous year1st Without 20211st Without 20201st Without 2019
Portugal6,4%9,4%9,2%
Continent6,6%9,8%9,2%
North5,9%8,3%10,1%
City Center3,5%6,1%6,2%
Lisbon Metropolitan Area3,1%11,7%16,0%
Alentejo3,7%6,2%3,8%
Algarve3,1%10,3%12,5%
Autonomous Region of the Azores-0,5%3,1%7,8%
Madeira Autonomous Region2,8%-0,3%12,8%

Overall, in the 1st half of 2021, in the midst of the Covid-19 pandemic, the value of rents from new contracts rose by 6,4%, although a less accentuated variation than in the two previous semesters.

Detail of lease evolution by Region

Between the 2nd quarter of 2021 and the same quarter of 2020, the value of rents per square meter evolved as follows:

Table 5 - Median value of rents per m2 and percentage variation between quarters, in new lease agreements for family accommodation by Region, Details of geographic location; Quarterly; Source INE, 23 September 2021

Median value of rents per m2 of new lease agreements2nd Qtr 20212nd Qtr 20202nd Quarter 2021 vs 2nd Quarter 2020
Total Portugal 6,03 € 5,41 €11,5%
Continent 6,06 € 5,43 €11,6%
Total North Region 5,15 € 4,73 €8,9%
Alto Minho 4,32 € 4,07 €6,1%
Dig 4,77 € 4,65 €2,6%
Poltry 3,68 € 3,50 €5,1%
Porto Metropolitan Area 6,40 € 5,81 €10,2%
High Tâmega 3,38 € 3,61 €-6,4%
Tâmega and Sousa 2,97 € 2,77 €7,2%
Douro 3,26 € 3,21 €1,6%
Lands of Trás-os-Montes 2,79 € 2,60 €7,3%
Total Central Region 4,29 € 4,00 €7,3%
West 4,94 € 4,40 €12,3%
Aveiro Region 4,70 € 4,20 €11,9%
Coimbra Region 4,71 € 4,48 €5,1%
Leiria Region 4,30 € 4,18 €2,9%
Viseu Dão Lafões 3,85 € 3,64 €5,8%
low edge 3,33 € 3,23 €3,1%
Middle Tagus 3,67 € 3,53 €4,0%
Beiras and Serra da Estrela 3,05 € 3,03 €0,7%
Lisbon Metropolitan Area 8,82 € 8,40 €5,0%
Total Alentejo Region 4,00 € 3,93 €1,8%
Alentejo Coast 5,27 € 5,38 €-2,0%
Lower Alentejo 3,78 € 3,67 €3,0%
Tagus marshland 4,17 € 4,26 €-2,1%
Upper Alentejo 2,80 € 2,83 €-1,1%
Central Alentejo 4,10 € 3,87 €5,9%
Total Algarve Region 6,96 € 6,54 €6,4%
Autonomous Region of the Azores 4,00 € 4,28 €-6,5%
Madeira Autonomous Region 6,32 € 5,68 €11,3%

Comparison of rental of houses between the 1st and 2nd quarter of 2021, in the most populous Municipalities

Taking as a reference the 24 Municipalities with more than 100.000 inhabitants, the evolution of the values ​​of rents in new lease contracts grew by 3,0% in the 2nd quarter of 2021 compared to the previous quarter.

The lease values ​​per square meter, for the 1st and 2nd quarters of 2021, are as follows:

Table 6 - Median value of rents per m² of new lease agreements for family accommodation, Municipalities with more than 100.000 inhabitants; Quarterly; Source INE, 23 September 2021

Median value of rents per m2 of new lease agreements2nd Qtr 20211nd Qtr 2021Percentage change between the two quarters
Total 7,78 € 7,55 €3,0%
Gondomar 5,69 € 5,68 €0,2%
Maya 6,20 € 6,07 €2,1%
Matosinhos 7,80 € 7,23 €7,9%
Porto 8,77 € 8,30 €5,7%
Santa Maria da Feira 4,15 € 4,17 €-0,5%
Vila Nova de Gaia 6,67 € 6,61 €0,9%
Almada 8,59 € 8,34 €3,0%
Amadora 8,85 € 8,75 €1,1%
Cascais 10,69 € 10,44 €2,4%
Lisboa 11,00 € 10,94 €0,5%
Loures 7,89 € 7,67 €2,9%
Odivelas 8,34 € 8,03 €3,9%
Oeiras 9,88 € 9,59 €3,0%
Seixal 6,81 € 6,65 €2,4%
Setúbal 6,99 € 6,54 €6,9%
Sintra 7,35 € 7,19 €2,2%
Vila Franca de Xira 6,80 € 6,90 €-1,4%
Barcelos 4,04 € 4,06 €-0,5%
Braga 5,25 € 5,16 €1,7%
Guimarães 4,12 € 4,04 €2,0%
Townsville 3,85 € 3,84 €0,3%
Coimbra 6,08 € 5,97 €1,8%
Leiria 4,70 € 4,55 €3,3%
Funchal 6,90 € 6,68 €3,3%

There are 9 Municipalities with prices per square meter above the national average. These are the municipalities of Matosinhos, Porto, Almada, Amadora, Cascais, Lisbon, Loures, Odivelas and Oeiras.

There are 3 Municipalities whose lease values ​​decreased in relation to the 1st quarter of 2021, Santa Maria da Feira, Vila Franca de Xira and Barcelos.

See too


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