New rental contracts signed in 2025 recorded an annual variation of only 0.2% in Lisbon and -1.6% in Porto, according to the latest figures from Confidencial Imobiliário's Residential Rent Index. In quarterly terms, the last quarter of the year recorded a variation of +0.4% in Lisbon and -0.9% in Porto.
The stabilisation recorded in Lisbon this year is the result of a gradual recovery in rents, Confidencial Imobiliário (Ci) points out. After a late 2024 and a first quarter of 2025 marked by quarterly declines of close to 2.0%, the capital entered a phase of greater stability, with positive quarterly changes, in chain terms, of close to 0.5% from the second quarter onwards. This development allowed for a gradual recovery in the year-on-year variation, which went from -3.4% in mid-2025 to a positive, albeit residual, value of 0.2% at the end of the year.
In Porto, the figures for 2025 reflect a market where rents have recorded several consecutive quarterly declines since the end of 2024, with the exception of the third quarter of 2025, when there was a marginal positive variation of 0.2%. None of these quarterly declines exceeded 1%, but their persistence over time ultimately pushed the annual variation into negative territory, marking the first annual decline since 2021.
In any case, both markets show a sharp slowdown in the significant increases recorded in recent years. Ci recalls that contracted rents increased by 26% in Lisbon in 2022, 9% in 2023 and 1% in 2024. In Porto, they rose by around 30% in 2022, 12% in 2023 and 2% in 2024.
Ricardo Guimarães, director of Confidencial Imobiliário, explains that "the loss of intensity observed in recent years is associated with the economic and political environment, marked by uncertainty regarding the updating of rents in existing contracts, the then escalation of inflation and successive changes and announcements of government measures aimed at the housing sector, factors that have mainly affected supply in the market".
In 2025, the average rent contracted in Lisbon reached €19.0/sqm/month and in Porto €15.0/sqm/month, according to data from SIR-Arrendamento.
