The availability of rental housing in Portugal has experienced a significant upturn, with a 55% increase in stock during the fourth quarter of 2023 compared to the same period in 2022,

as revealed by a study conducted by idealista.

Ruben Marques, spokesperson for idealista, noted that various housing policies appear to be reshaping the rental market landscape. Factors such as restrictions on Local Accommodation, the cessation of the Non-Habitual Residents (RNH) regime, penalties for vacant properties, and reduced taxes on income are believed to be driving forces behind the surge in available rental properties. Marques emphasized that despite this uptick in supply, rental prices continue to remain high, posing challenges for many Portuguese households.

Concurrently, demand for rental housing has shown signs of cooling in the latter half of 2023, with fewer new rental contracts being initiated, according to data from the National Statistics Institute (INE). High rental costs and a scarcity of affordable rental properties suitable for families may account for this trend, with individuals resorting to alternative living arrangements such as shared housing, renting single rooms, or returning to familial homes.

The study highlights a notable expansion in rental property supply across 15 district capitals in Portugal, with Viseu and Porto leading the surge, doubling their available rental housing by the end of 2023 compared to the previous year. Other cities experiencing substantial growth include Braga (85%), Lisbon (63%), Castelo Branco (53%), and Guarda (50%).

However, there are exceptions, with a few cities witnessing a decline in available rental housing. Bragança saw the most significant decrease (-16%), followed by Ponta Delgada (-13%), Funchal (-8%), and Faro (-1%).