Rental Prices Soar in Funchal
Funchal has seen a staggering 37.5% increase in rental prices in the second quarter of this year. Only in Greater Lisbon do rental prices surpass those in the Autonomous Region of Madeira.
According to data released by INE, rental values in Portugal continue to rise, highlighting the country's coastal inclination. The Greater Lisbon area and southern regions, alongside Funchal, report the highest rental prices.
Funchal's Notable Rise
The median rent in Funchal has surged by 37.5% year-on-year, a growth attributed to a 40% increase in new rental contracts as demand for housing intensifies.
Regional Comparisons
The Porto Metropolitan Area has a median price of €8.89/m², ranking fifth nationally. The Algarve leads with €9.52/m², followed closely by Setúbal Peninsula at €10.07/m², and Madeira at €10.26/m². Topping the list is Greater Lisbon with €12.99/m².
Source: INE
The Alentejo coast, with €8.52/m², is just below Porto. These regions exceed the national average of €8.08/m². At the bottom of the spectrum are regions like Tâmega e Sousa, Alto Alentejo, and Trás-os-Montes, where rents can drop below €4/m².
Declining Rents in Some Areas
In terms of NUTS III sub-regions and municipalities with over 100,000 residents, only the Azores (-2.8%) and Alto Alentejo (-0.3%) reported a decrease in average rents compared to last year.
Lisbon's Rental Market
As expected, Lisbon remains the most expensive area for renting, with a median rent of €1,600 for a 100 square meter home. However, its 5.1% year-on-year increase is less than half of the 11.1% national average across 22,181 rental contracts, marking a 6.9% increase from the previous quarter.
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