In Portugal, rent costs are still rising, particularly in Madeira and coastal areas. Renting a house is most costly in Greater Lisbon, the Algarve, the Setúbal Peninsula, and Madeira. Porto is the biggest city in the country but it comes lower in terms of rent costs.

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Most Expensive Areas To Rent In Portugal

Madeira

Madeira is a major tourist spot in Portugal. It has become one of the most costly areas to live in Portugal. Currently, the second most expensive city in the nation to rent a house is Funchal which is the capital of Madeira.

The rent prices has increased by 37.5% in one year. Because of the increase in demand for homes in Funchal. The number of new rental contracts also went up by 40 percent.

Funchal is not only expensive but also a popular holiday spot. It has been named the second most relaxing city for a vacation in Europe. This growing popularity with tourists and renters has contributed to rising rents.

Porto

Porto is another major city but it is less expensive than Lisbon or Madeira. It is in fifth number in terms of rent in Portugal due to the standard rent in Porto is 8.89 euros per square meter. Porto is more affordable than the southern areas. But it has higher rent prices in comparison to other regions of Portugal.

In the southern regions, such as the Algarve and Setúbal Peninsula, rent is much more expensive. The median monthly rentals for each of them are 9.52 and 10.07 euros per square meter.

Lisbon

In Portugal, the most pricey place to rent a house is still Greater Lisbon. Here, a square meter rent of €12.99 is the normal rate. A 100 square meter flat in the city costs around 1,600 euros to rent.

Despite being the most expensive city, rents in Lisbon grew by just 5.1% over the previous year as compared to the national average of 11.1%.

Tâmega e Sousa & Alto Alentejo: Most Affordable Places

There are still a few areas in Portugal where rent is much less costly. There is less than €4 per square meter of rent in areas like Tâmega e Sousa, Alto Alentejo, and Trás-os-Montes.

But these regions do not have the same coastal lifestyle as more expensive areas. These areas provide cheaper rates of living.

Coastal Regions In Portugal

Portugal’s rental market shows that the most costly places are located along the shores. There is particularly strong demand for the Algarve, Setúbal Peninsula, and Madeira.

These locations are now the most costly to rent in the whole country due to both coastline and tourism. But interior areas remain to be more affordable.

The cost of rent has only decreased in a few locations. The only two exceptions are the Azores and Alto Alentejo, where rents have decreased somewhat. Rent prices are still going up across the rest of the country, particularly in the coastal areas.