Authored by the expert who managed and guided the team behind the Portugal Property Pack
Everything you need to know before buying real estate is included in our Portugal Property Pack
If you're looking to rent or invest in rental property in Portugal, you probably want to know what rents actually look like right now.
This guide breaks down current rental prices across Portugal, from studios to 2-bedrooms, and covers the neighborhoods, tenant profiles, and costs that matter most.
We update this article regularly to keep the numbers fresh and useful.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Portugal.
Fact-checked and reviewed by our local expert
João Morais 🇵🇹
Founder | Real Estate Advisor, at Wilderness Investments
What are typical rents in Portugal as of 2026?
What's the average monthly rent for a studio in Portugal as of 2026?
As of early 2026, the average monthly rent for a studio apartment in Portugal is around €600, which is approximately $650 USD or roughly the same in EUR terms.
Most studios in Portugal rent for somewhere between €450 and €1,100 per month ($490 to $1,200 USD), with Lisbon at the top of that range and smaller cities like Braga or Coimbra at the lower end.
The main factors that cause studio rents to vary in Portugal are location (Lisbon and Porto command premiums), building condition (renovated units with elevators cost more), and whether the apartment is furnished or unfurnished.
What's the average monthly rent for a 1-bedroom in Portugal as of 2026?
As of early 2026, the average monthly rent for a 1-bedroom apartment in Portugal is around €950, which works out to approximately $1,030 USD.
The realistic range for 1-bedroom apartments in Portugal spans from about €650 to €1,650 per month ($700 to $1,790 USD), depending heavily on whether you're looking in a major city or a smaller town.
In Portugal, the cheapest 1-bedroom rents are found in interior cities like Castelo Branco or Guarda, while the most expensive are concentrated in Lisbon's central neighborhoods like Chiado, Príncipe Real, and Avenida da Liberdade.
What's the average monthly rent for a 2-bedroom in Portugal as of 2026?
As of early 2026, the average monthly rent for a 2-bedroom apartment in Portugal is around €1,400, which equals approximately $1,520 USD.
Most 2-bedroom apartments in Portugal rent for between €900 and €2,400 per month ($975 to $2,600 USD), with the wide range reflecting the big gap between Lisbon's prime areas and Portugal's smaller cities.
The cheapest 2-bedroom rents in Portugal are typically found in cities like Viseu, Beja, or Portalegre, while Lisbon neighborhoods like Lapa, Estrela, and the Cascais coastal area command the highest prices due to expat demand and proximity to international schools.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Portugal.
What's the average rent per square meter in Portugal as of 2026?
As of early 2026, the average advertised rent per square meter in Portugal is around €17 to €18 (approximately $18 to $20 USD), though actual signed contracts average closer to €9 per square meter ($10 USD).
Rent per square meter in Portugal ranges from about €6 to €25 ($6.50 to $27 USD), with interior towns at the low end and Lisbon's premium neighborhoods like Avenida da Liberdade or Chiado at the top.
Compared to other major cities in Portugal, Lisbon's rent per square meter is significantly higher than Porto (which averages around €14 to €16 per square meter) and more than double what you'd pay in cities like Coimbra or Braga.
Properties that push rent per square meter above average in Portugal typically have features like recent renovations, air conditioning, elevators, balconies, and locations within walking distance of metro stations.
How much have rents changed year-over-year in Portugal in 2026?
As of early 2026, advertised asking rents in Portugal have increased by approximately 5% year-over-year, while contracted new-lease rents have risen by around 8%.
The main factors driving rent increases in Portugal this year are a persistent housing supply shortage, continued strong demand from both local workers and international migrants, and the fact that new construction has not kept pace with population growth in Lisbon and Porto.
This year's rent growth in Portugal is slightly slower than 2025's pace, when some areas saw double-digit increases, suggesting the market is cooling somewhat but not reversing due to ongoing structural supply constraints.
What's the outlook for rent growth in Portugal in 2026?
As of early 2026, Portugal is expected to see rent growth of around 3% to 6% nationally over the course of the year, with Lisbon and its surrounding areas likely at the higher end of that range.
The key factors likely to influence rent growth in Portugal are continued population growth in urban centers, limited new housing supply, strong international demand from expats and digital nomads, and the fact that many existing tenants are protected by rent caps of just 2.24%.
The neighborhoods in Portugal expected to see the strongest rent growth include Lisbon's central and waterfront areas, the Cascais and Oeiras coastal belt, and well-connected Porto neighborhoods like Foz do Douro and Boavista.
The main risks that could cause rent growth in Portugal to differ from projections include a potential economic slowdown in Europe, changes to Portugal's housing policies, or a significant increase in new housing completions that could ease supply pressure.
We have made this infographic to give you a quick and clear snapshot of the property market in Portugal. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods rent best in Portugal as of 2026?
Which neighborhoods have the highest rents in Portugal as of 2026?
As of early 2026, the three neighborhoods with the highest average rents in Portugal are Avenida da Liberdade in Lisbon (around €25 to €30 per square meter, or $27 to $33 USD), Príncipe Real in Lisbon (around €22 to €28 per square meter), and Estoril in the Cascais municipality (around €20 to €25 per square meter).
These neighborhoods command premium rents in Portugal because of their central locations, historic architecture, proximity to high-end shops and restaurants, excellent transport links, and in Estoril's case, beach access combined with an easy train commute to Lisbon.
The tenant profile that typically rents in these high-rent Portugal neighborhoods includes senior executives, diplomats, wealthy expats, and international professionals on corporate relocation packages who prioritize location and quality over price.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Portugal.
Where do young professionals prefer to rent in Portugal right now?
The top three neighborhoods where young professionals prefer to rent in Portugal are Santos and Cais do Sodré in Lisbon (for nightlife and riverside access), Arroios in Lisbon (affordable and central), and Cedofeita in Porto (trendy cafes and creative scene).
Young professionals in these Portugal neighborhoods typically pay between €700 and €1,200 per month ($760 to $1,300 USD) for a 1-bedroom apartment, with Santos and Cais do Sodré at the higher end due to waterfront appeal.
The specific amenities that attract young professionals to these Portugal neighborhoods include walkable streets with bars and restaurants, good metro and tram connections, co-working spaces nearby, and a mix of traditional Portuguese character with modern renovations.
By the way, you will find a detailed tenant analysis in our property pack covering the real estate market in Portugal.
Where do families prefer to rent in Portugal right now?
The top three neighborhoods where families prefer to rent in Portugal are Alvalade in Lisbon (green spaces and good schools), Campo de Ourique in Lisbon (village-like atmosphere), and the Cascais and Oeiras coastal area west of Lisbon (beaches and international schools).
Families in these Portugal neighborhoods typically pay between €1,400 and €2,500 per month ($1,520 to $2,720 USD) for a 2 to 3 bedroom apartment, with Cascais commanding the highest rents due to its combination of coastal lifestyle and school access.
The specific features that make these neighborhoods attractive to families in Portugal include safe streets, proximity to parks and playgrounds, reliable public transport, local markets and family-friendly restaurants, and quieter residential atmospheres compared to central Lisbon.
Top-rated schools near these family-friendly Portugal neighborhoods include St. Julian's School and Carlucci American International School in the Cascais and Oeiras area, plus well-regarded public schools in Alvalade like Escola Básica Teixeira de Pascoais.
Which areas near transit or universities rent faster in Portugal in 2026?
As of early 2026, the three areas near transit hubs or universities that rent fastest in Portugal are Cidade Universitária in Lisbon (near the main university campus), Saldanha and Entrecampos in Lisbon (major metro and rail nodes), and Asprela in Porto (university and hospital cluster).
Properties in these high-demand Portugal areas typically stay listed for just 10 to 20 days, compared to 30 to 60 days for less well-located units, because students and commuting professionals snap them up quickly.
The typical rent premium for properties within walking distance of transit or universities in Portugal is around €50 to €150 per month ($55 to $165 USD) compared to similar apartments just a 15-minute walk further away.
Which neighborhoods are most popular with expats in Portugal right now?
The top three neighborhoods most popular with expats in Portugal are Príncipe Real and Chiado in central Lisbon (historic charm and international restaurants), Parque das Nações in Lisbon (modern apartments and riverside lifestyle), and Cascais west of Lisbon (beach town with English-speaking community).
Expats in these Portugal neighborhoods typically pay between €1,200 and €2,200 per month ($1,300 to $2,390 USD) for a 1 to 2 bedroom apartment, with furnished units at the higher end of that range.
The specific features that make these neighborhoods attractive to expats in Portugal include English-speaking services, international grocery stores, proximity to international schools, reliable internet for remote workers, and active social scenes with other foreigners.
The nationalities most represented in these expat-popular Portugal neighborhoods include Americans, British, French, German, and Brazilian residents, with a growing number of digital nomads from across Europe and North America.
And if you are also an expat, you may want to read our exhaustive guide for expats in Portugal.
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Who rents, and what do tenants want in Portugal right now?
What tenant profiles dominate rentals in Portugal?
The top three tenant profiles that dominate the rental market in Portugal are local workers commuting to jobs in Lisbon and Porto, university students in major academic cities, and expats including digital nomads and international professionals.
Local workers make up roughly 50% to 55% of Portugal's rental market, students account for around 20% to 25%, and expats and international tenants represent approximately 15% to 20%, with the remainder being retirees and short-term renters.
Local workers in Portugal typically seek affordable 1 to 2 bedroom apartments near metro lines, students look for studios or shared apartments close to universities, and expats often prefer furnished 1 to 2 bedroom units in central or coastal neighborhoods with modern amenities.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Portugal.
Do tenants prefer furnished or unfurnished in Portugal?
In Portugal, roughly 35% to 40% of tenants prefer furnished rentals, while 60% to 65% prefer unfurnished apartments, though this split varies significantly by neighborhood and tenant type.
The typical rent premium for furnished apartments in Portugal is around €100 to €250 per month ($110 to $270 USD) compared to unfurnished units of similar size and location, with the premium higher in expat-heavy areas like Príncipe Real or Cascais.
The tenant profiles that tend to prefer furnished rentals in Portugal are expats on shorter assignments, students who don't want to buy furniture, and digital nomads who value move-in-ready convenience, while local families on longer leases typically prefer unfurnished to save money and use their own furniture.
Which amenities increase rent the most in Portugal?
The top five amenities that increase rent the most in Portugal are elevators in older buildings, air conditioning and efficient heating, dedicated parking spaces, private balconies or terraces, and renovated modern kitchens with good insulation.
In Portugal, an elevator can add €50 to €100 per month ($55 to $110 USD) to the rent, air conditioning adds €30 to €80 ($33 to $87 USD), parking adds €50 to €150 ($55 to $165 USD), a balcony adds €40 to €100 ($44 to $110 USD), and a renovated kitchen with good windows adds €50 to €120 ($55 to $130 USD).
In our property pack covering the real estate market in Portugal, we cover what are the best investments a landlord can make.
What renovations get the best ROI for rentals in Portugal?
The top five renovations that get the best ROI for rental properties in Portugal are window and insulation upgrades, kitchen modernization, bathroom refresh, installation of air conditioning, and improved lighting and electrical systems.
In Portugal, window and insulation upgrades typically cost €2,000 to €5,000 ($2,170 to $5,430 USD) and can increase rent by €50 to €100 per month, a kitchen renovation costs €3,000 to €8,000 ($3,260 to $8,690 USD) for a €60 to €120 monthly rent boost, and air conditioning installation costs €1,000 to €2,500 ($1,090 to $2,720 USD) for a €30 to €80 monthly premium.
Renovations that tend to have poor ROI and should be avoided by landlords in Portugal include luxury finishes that exceed neighborhood standards, swimming pool installations in urban apartments, and high-end smart home systems that tenants may not value enough to pay extra for.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Portugal versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
How strong is rental demand in Portugal as of 2026?
What's the vacancy rate for rentals in Portugal as of 2026?
As of early 2026, the estimated vacancy rate for long-term rental properties in Portugal is around 5% to 7% nationally, but this figure masks a much tighter market in the major cities.
Vacancy rates in Portugal range from around 2% to 4% in Lisbon and Porto city centers (very tight) to 8% to 12% in interior regions and some tourism-heavy coastal areas where properties may be held for short-term rentals instead.
The current vacancy rate in Portugal is lower than the historical average because demand has grown faster than new housing supply, and many technically vacant units are actually second homes or short-term rental properties unavailable to long-term tenants.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Portugal.
How many days do rentals stay listed in Portugal as of 2026?
As of early 2026, the average number of days rentals stay listed in Portugal is around 20 to 30 days nationally, though well-priced properties in high-demand areas often rent within 10 to 15 days.
Days on market in Portugal range from about 10 to 25 days for correctly priced apartments in Lisbon and Porto to 30 to 60 days or more for overpriced units, properties in less popular locations, or those with condition issues.
The current days-on-market figure in Portugal is similar to or slightly faster than one year ago, reflecting continued strong demand despite some cooling in the pace of rent increases.
Which months have peak tenant demand in Portugal?
The peak months for tenant demand in Portugal are August through October, when students return to universities, professionals start new jobs after summer, and families settle before the school year begins.
The specific factors driving seasonal demand patterns in Portugal include the academic calendar (university terms starting in September), traditional job-change timing after summer holidays, and expat relocation patterns that often align with international school calendars.
The months with the lowest tenant demand in Portugal are typically November through January and April through early June, when fewer people are actively relocating and the market slows between peak periods.
Buying real estate in Portugal can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What will my monthly costs be in Portugal as of 2026?
What property taxes should landlords expect in Portugal as of 2026?
As of early 2026, the typical annual property tax (IMI) for a rental apartment in Portugal is around €300 to €700 per year (approximately $325 to $760 USD), which works out to roughly €25 to €60 per month.
Annual property taxes in Portugal range from around €150 per year ($165 USD) for lower-value properties in smaller cities to €1,500 or more ($1,630 USD) for high-value apartments in Lisbon's prime neighborhoods, depending on the property's tax value (VPT).
Property taxes in Portugal are calculated by applying the municipal IMI rate (which ranges from 0.3% to 0.45% for urban properties) to the property's tax value (VPT), with the exact rate determined by each municipality.
Please note that, in our property pack covering the real estate market in Portugal, we cover what exemptions or deductions may be available to reduce property taxes for landlords.
What maintenance budget per year is realistic in Portugal right now?
The estimated realistic annual maintenance budget for a typical rental apartment in Portugal is around €800 to €1,800 per year (approximately $870 to $1,960 USD), which covers condominium fees, routine repairs, and small improvements.
Annual maintenance costs in Portugal range from about €500 per year ($545 USD) for newer buildings in good condition to €2,500 or more ($2,720 USD) for older properties with elevators, coastal exposure, or buildings that require more frequent repairs.
Most landlords in Portugal set aside around 5% to 10% of their annual rental income for maintenance, with those owning older Lisbon apartments in historic buildings typically budgeting toward the higher end of that range.
What utilities do landlords often pay in Portugal right now?
The utilities landlords most commonly pay on behalf of tenants in Portugal are the condominium fees (building common charges), and sometimes water or internet in furnished or all-inclusive rental arrangements popular with expats and students.
When landlords do cover these costs in Portugal, condominium fees typically run €30 to €100 per month ($33 to $110 USD), water costs €15 to €30 ($16 to $33 USD), and internet packages cost €25 to €40 ($27 to $44 USD).
The common practice in Portugal is for tenants to pay their own electricity, gas, water, and internet directly, while the landlord covers condominium fees, though furnished rentals aimed at expats often bundle some utilities into an all-inclusive monthly rent.
How is rental income taxed in Portugal as of 2026?
As of early 2026, rental income from residential properties in Portugal is taxed at a default autonomous rate of 25% for individual landlords, though reduced rates are available for landlords who sign longer lease contracts.
The main deductions landlords can claim against rental income in Portugal include property maintenance and repair costs, condominium fees, IMI property tax, insurance premiums, and in some cases mortgage interest, all of which reduce the taxable rental amount.
A common tax mistake specific to Portugal that landlords should avoid is failing to take advantage of the reduced tax rates for longer leases, since choosing a 5-year or longer contract can significantly lower the tax rate, and many landlords don't realize that lease length is a real tax planning lever in Portugal.
We cover these mistakes, among others, in our list of risks and pitfalls people face when buying property in Portugal.
We made this infographic to show you how property prices in Portugal compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Portugal, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Statistics Portugal (INE) | Portugal's official national statistics agency and the primary source for housing and rent data. | We used INE to anchor contracted rent medians from new lease contracts. We also used their data as a reality check against advertised listing prices. |
| INE Construction and Housing Hub | The official portal where INE publishes housing market indicators and construction statistics. | We used this to understand the supply story, including new homes completed and licensed. We used it to explain why rents stay high when supply lags demand. |
| Portuguese Tax Authority (CIRS Article 72) | The official legal text for Portugal's rental income tax rates. | We used it to state the default 25% tax rate on residential rental income. We also used it to explain the reduced rates available for longer lease contracts. |
| Portuguese Tax Authority (CIMI Article 112) | The official legal basis for Portugal's annual municipal property tax (IMI). | We used it to provide the legal IMI rate band of 0.3% to 0.45% for urban properties. We used it to build realistic monthly cost examples for landlords. |
| Portal das Finanças IMI Rate Lookup | The official portal where you can verify the IMI rate set by each Portuguese municipality. | We used it to validate that IMI is municipality-specific. We used it to explain how landlords should confirm the exact rate for their property. |
| gov.pt IMI Payment Guide | Portugal's official government services portal for citizen information. | We used it to confirm who pays IMI and when payments are due. We used it to keep the monthly costs section simple and accurate. |
| Diário da República | Portugal's official gazette where legally binding notices are published. | We used it to anchor the maximum annual rent update for existing contracts in 2026 (2.24%). We used it to explain why new leases can rise faster than existing tenant rents. |
| ERSE 2026 Electricity Tariffs | ERSE is Portugal's official energy regulator. | We used it to understand 2026 electricity cost direction for the regulated market. We used it to inform what utilities might look like in early 2026. |
| ECB Data Portal | An official Eurosystem data portal with national central bank-supplied housing indicators. | We used it as an authoritative reference for vacancy rate definitions and methodology. We used it to avoid imprecise language when discussing vacancy. |
| Confidencial Imobiliário | A well-known Portuguese databank that tracks transaction-based housing indicators. | We used it as a second lens on contracted market trends. We used it to cross-check the direction of rent changes and highlight when different datasets temporarily disagree. |
| idealista Press Releases | The biggest listing portal in Iberia with transparent methodology around asking prices. | We used it to anchor advertised asking rent per square meter and price momentum. We used it to translate per-square-meter figures into what renters actually see on listings. |
| idealista Housing News | A large, observable dataset of real-time renter behavior and listing engagement. | We used it as a practical proxy for how fast rentals move based on contacts per listing. We used it to support days-on-market estimates and seasonality patterns. |
| JLL Research Portugal | A major global real estate consultancy with a dedicated research function. | We used it to support the macro story of structural shortage plus demand drivers. We used it to keep the 2026 outlook grounded in fundamentals rather than speculation. |
| CBRE Portugal Residential Viewpoint | A major global real estate consultancy whose reports are widely cited by investors. | We used it to corroborate demographic pressure and supply mismatch as key rent drivers. We used it to shape the 2026 base case of a tight market with slower but positive growth. |
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