Portugal rental property supply soars

By TPN, in News, Portugal, Property · 17 Apr 2024, 20:02 · 0 Comments

The most recent data from idealista shows that the stock of the Portuguese housing stock available for rent soared by 81% in the first quarter of 2024 compared to the same period in 2023.

"Some initiatives implemented by the previous Government in the housing sector seem to be having an impact on the rental market in Portugal, with a significant increase in the supply of houses for rent", says Ruben Marques, spokesperson for idealista. "Restrictions on Local Accommodation (AL), the end of the Non-Habitual Residents (RNH) regime, and the reduction in income taxes may have contributed to a reinforcement of the availability of properties on the market", adds Ruben Marques.

Decisive

But, according to the idealista spokesperson, "the next few months will be decisive for observing the behaviour of the rental market, taking into account the evolution of the economic and political context, namely the announced repeal of some Mais Habitação measures", as is the case of several restrictions on AL, the coercive leasing of vacant houses and the freezing of rents, recently promised by the new Government led by Luís Montenegro.

Rental prices

Despite this scenario of a greater supply of houses on the rental market, renting a house in Portugal continues to become more expensive: house rents rose 2% at the beginning of 2024 compared to the previous quarter. Thus, the high cost of living in a rented house, especially in large urban centers, combined with low purchasing power may be compromising families' ability to change housing. Still, interest continues to exist, as there are, on average, 34 families interested in each house for rent advertised on idealista.

The supply of housing available for rent in Portugal rose in 19 of the 20 district capitals last year. The only exception is Viana do Castelo, where the stock decreased by 2%, according to data from idealista.

More houses for rent

The biggest increases in the supply of houses for rent are in Bragança (191%), Porto (129%), Leiria (128%), Lisbon (102%), cities where the number of houses available for rent doubled between the beginning 2024 and the same quarter of 2023.

The list of cities that recorded the biggest increases in houses for rent in this period follows Aveiro (99%), Braga (92%), Coimbra (84%), Castelo Branco (73%), Faro (71%), Vila Real (67%), Beja (64%), Funchal (55%), Setúbal (55%), Guarda (29%), Évora (28%) and Ponta Delgada (17%).

The smallest increases in the supply of houses on the rental market were recorded in Santarém (10%), Portalegre (8%) and Viseu (3%).

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