The median rent from new rental contracts in Portugal increased by 10.7% in the third quarter of 2024, reaching 8.00 euros per square meter, according to provisional data released by the National Statistics Institute (). Despite the increase in values, the number of new contracts fell by 5% compared to the same period in 2023, totaling 23,684 contracts.
In the Algarve, the median income reached 8.81 euros/m² in the third quarter, positioning itself among the highest in the country, behind Greater Lisbon (13.53 euros/m²), Autonomous Region of Madeira (10.66 euros/ m²) and Setúbal Peninsula (10.18 euros/m²). This value highlights the region as one of the most sought after, reflecting the constant pressure from the real estate market, especially in areas with strong tourist activity.
National and regional trends
The 10.7% increase in national median income was slightly lower than that recorded in the previous quarter (11.1%). However, some regions saw a decrease in rents, such as Terras de Trás-os-Montes (-7.7%), Central Alentejo (-3.4%), Autonomous Region of the Azores (-3.0%) and Baixo Alentejo (-1.8%).
In municipalities with more than 100 thousand inhabitants, Lisbon had the highest median income (16.18 euros/m²), but with an annual growth rate of just 3.0%. In Funchal, there was the largest percentage increase, with a variation of 25.9%.
Impact on the Algarve market
In the Algarve context, the high values reflect the impact of strong housing and tourism demand. The trend of rising rents may continue, fueled by consistent demand and regional market appreciation, especially in the most sought-after coastal and urban areas.
With these changes, the rental market in the Algarve continues to be a challenge for local residents, requiring solutions that reconcile economic growth with housing accessibility.
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