Lease. Market “suffers from grace of supply”

The lease market in Portugal has suffered some oscillations over the years. For some, it is a ‘fast’ solution to have access to a housing without having to resort to credit but the truth is that prices are not for any wallet at least in big cities. And the lack of supply has been one of the biggest problems.

As with the purchase, renting a house in Portugal remains a real challenge. Much demand, little offer, prices in virtually all cases, above the national minimum wage. It is, in the background, a high price market where the offer is short.

The data leaves no room for doubts of those who lease home have to do the accounts very well. It’s that the latest figures from the National Institute of Statistics (INE) show that those who live at home saw their incomes increase, an average of 7% last year. And this was a much higher increase than that recorded the previous year and was even the most pronounced in the last 30 years. The highlight goes to the northern and Lisbon areas.

“Prices are at an absurd value. How can they ask for a T1 on the outskirts of Lisbon, 800 euros? Does anyone have a sense that I earn little more than that and I have a child to raise?”, Tell us a mother who lives alone with her son and looks for a house in the amateur zone. This is a case, but there are thousands like that. Although the purchase could be a solution due to the public guarantee gave the government, this Portuguese argues that even the houses to buy are « an absurd price ». This is just a case, throughout the country there are thousands of other equals.

‘It is no longer competitive’ Manuel Alvarez, president of Remax, says that as with the purchase/sale market, the lease “suffers from a lack of supply and for many years that it has ceased to be competitive”, saying that “it is certain that in 2024 was one of the largest increases in recent decades (almost 7%), but for this year 2025, the update coefficient is 2.16% It mirrors a more balanced market, albeit with little or not competitive values ​​compared to a possible delivery to housing. ” In terms of activity, the official argues that « large variations are not expected to 2024 and at price level, the trend will also be growth, but at a lower pace. »
In turn, Rui Torgal, CEO of Era Portugal argues that “these numbers are not surprising and are even easy to understand”, setting an example: “We have received many customers in our agencies that initially intend to lease and later decide to buy. This change is now even more common, especially in younger generations, due to the various incentives for home purchase, especially with public warranty – which has resolved one of the main reasons for young people to opt for the lease market ( lack of capital for entrance) ”.

Price speculation in the capitals and some descents It is certain that there are increasing prices, especially if we take into account the characteristics of the real estate in question. In Lisbon, for example, the cheapest apartment we found is a T0 (or studio, as the ad says) on Maria Pia Street. There are 450 euros for 22 square meters in a basement. And you need to pay the start and two lace.
But there are other cases. The amount of T0 – some of them in old commercial spaces – around 750 euros in Lisbon is huge. And there are even higher values. In Campolide, in the neighborhood of Serafina, there is a studio at 850 euros. And if T0 are at these values, if we look, for example, a T2, the prices fly and the average is about 1,200 euros a month.
Still, it seems that these prices are no longer as high as they were in previous years. Real Estate Confidential says that the values ​​have fallen 2.7% in the last three months of last year. And there is more offer on the market. In January, there was a 41% increase in offering houses to lease in Lisbon, when compared the fourth quarter of 2024 with the same period of 2023.

Manuel Alvarez argues that « it is well known that a higher offer when not accompanied by such a higher demand leads to a low price. » However, it warns that « we must not forget that a part of this larger offer was due to the lack of flow from real estate, also because they are at very high prices for the income of families. » In your opinion, « of course, that in many situations the offer prices will have to lower or the owner risks not finding a lender customer for more months than is desirable. »

Government fell… but… The government will be another from May and it is not known what will happen from then on but the truth is that Luís Montenegro, in its Christmas message, assured that his government would « encourage construction and lease of houses for moderate values. » And this month is this month, the Prime Minister chaired the inauguration of the Alto da Montanha housing program, in the municipality of Oeiras, a building with 64 affordable income housing with an estimated cost of 9.5 million euros.

And, during his term, Luís Montenegro advanced with some measures, among which revoked several measures of the most housing of the Executive of António Costa, such as the forced lease of vacant houses and measures that penalized the activity of local accommodation (extraordinary rate, for example) and advanced with the reinforcement of public housing, joining the 26,000 houses funded by the 33,000 resilience plan that will be funded by the state budget funding and resilience plan. (see pages 14-15).

And the rooms? And for those whose budgets are not enough to pay an income of a house, rent a room is the solution found, no longer just an option for students, but here also the values ​​have been rising. The latest numbers of the idealist show that the offer of rooms to lease at home has risen 56% in the last three months of last year compared to the previous year. In the previous quarter the increase in supply was 36%, thus verifying a tendency to continue in recent months. Although there are more rooms to lease, prices rose 13% in a year.

Owners’ problems In January of this year, the “owners’ confidence of the Lisbonense Association of Owners (ALP) revealed that Portuguese real estate owners are elderly or very elderly, small investors with middle-class income (midfielder) and that they assumed, by inheritance, the“ profession ”of landlords.
« Massacred by the freezing of rent, the overwhelming majority did not ask for compensation to the state. They say they practice reasonable incomes and believe that the lease market goes, in 2025, to see their structural problems and that the prices of houses will increase throughout the country, » reveals the ALP by saying that the freezing of rent « is a scourge that plays virtually two thirds of respondents (65.5%) » overwhelming majority of alected owners (58%) “has not requested the compensation provided by law, which is possible to instruct since July with IHRU – Institute of Housing and Urban Rehabilitation”.

“Much of the problems of the Portuguese lease market were almost immediately resolved if the state worked as a good person and really wanted to repair the injustice it was-and continues to be-the freezing of lace. It is a phenomenon that has destroyed the development of lease, housing and social mobility for too many years. Necessary step, ”said Luís Menezes Leitão, president of ALP.