Price per square meter in new rentals rose in the 4th quarter of 2023, 11.6% more in one year.
The values of new lease contracts continue to increase. The latest available data, relating to the 4th quarter of 2023, reveals that the median price, across the country, reached 7.71 euros per square meter, an increase of 11.6% compared to the same period of the year antecedent, according to the National Statistics Institute (INE). The most expensive rents are offered in Greater Lisbon, Setúbal Peninsula, Madeira, Algarve and Greater Porto.
Compared to the 4th quarter of 2022, one year later, new lease contracts reg
Rent skyrockets to 7.71 euros per square meter
There were increases in the vast majority of the 26 NUTS III sub-regions into which the country is divided. The only exception was the Autonomous Region of the Azores, where the value of new rents fell by 3.2%. The scarcity of houses and the high demand mean that the problem is felt especially in the largest urban areas of the country. In the case of Greater Lisbon, where rents are the most expensive, the price per square meter reached the median value of 12, 54 euros, reached 9.65 euros in the Setúbal Peninsula, 9.65 euros in Madeira, 9.09 euros in the Algarve and 8.64 euros in Greater Porto.The phenomenon of rising rents is linked to several factors, points out the Deco Consumer Protection Association, such as the chronic reduction in the construction of new homes to be placed on the market.
“In the last decade, on average, 3275 dwellings have been completed per quarter. Between 2003 and 2012, the number was around 14,200. In other words, there is a huge delay on the supply side”, highlights a work by the association’s technicians published in ‘Proteste Investe’.The same source adds that the solution to the problem should involve “direct action by the State in certain segments of housing with controlled rents, in addition to a general reinforcement of incentives for the supply (facilitating construction or bringing more vacant houses to the market) of in order to reduce the pace of price rises”. Number of new contracts grew 4.5% in the last quarter of 2023
In the 4th quarter of 2023, 23,637 new accommodation rental contracts were signed family members in Portugal. This is an increase in activity of around 4.5%, compared to the same period of the previous year, when new leases were 22,628. The regions with the highest number of new contracts in the last quarter of last year stand out. Greater Lisbon (5941), Greater Porto (3927), Setúbal Peninsula (1672) and the Algarve (1566).
DETAILS
More expensive
Among the set of municipalities with more than 100 thousand inhabitants, the municipality of Lisbon was the one that registered, at national level, the highest median value (15.22 euros per square meter) in new rental contracts signed in the 2nd semester 2023, according to data from INE.
Record
If Lisbon has the highest median values, its parishes, especially in the city center, beat these numbers. Santo António, which includes, for example, Avenida da Liberdade, has new rents reaching 19.44 euros per square meter.
Foz highlighted
In the 2nd half of 2023, the Union of Parishes of Aldoar, Foz do Douro and Nevogilde stood out in terms of the highest rental value of new contracts in the city of Porto (13.78 euros per square meter).
