Portugal's Room Rental Supply Increases by 36%

In Q3, the supply of rooms for rent in Portugal surged 36% year-on-year, reflecting a slowdown from last quarter's 57% growth. Discover the trends.

The rental landscape in Portugal has undergone a significant transformation, with the availability of rooms for rent experiencing a remarkable surge of 36% in the third quarter of this year, when juxtaposed with the corresponding timeframe of the previous year. This increase, while impressive, represents a deceleration from the second quarter's staggering 57% growth. 

Despite this burgeoning supply, the financial implications for prospective tenants are less than favorable, as the cost of residing in shared accommodations has escalated by 7% over the past year, according to a comprehensive analysis disseminated by idealista. A closer examination of the rental market across various capitals reveals that the uptick in available rooms has been particularly pronounced, with ten major cities witnessing stock increases exceeding 25%. 

Leading the charge is Beja, where the supply of rental rooms has skyrocketed by an astonishing 73%. Following closely are Castelo Branco (68%), Leiria (60%), and Viseu (57%). The capital city, Lisbon, is not far behind, boasting a 53% increase, while Santarém (49%), Aveiro (43%), Viana do Castelo (41%), Ponta Delgada (41%), and Porto (38%) also contribute to this upward trend. 

Conversely, a more modest growth rate of less than 25% is observed in Coimbra (20%), Évora (11%), Bragança (10%), and Braga (6%). Interestingly, Guarda has maintained a stable inventory of rental rooms, showing no change between the third quarter of 2024 and the same period last year. 

However, not all cities are basking in the glow of increased availability. A notable decline in rental options has been recorded in four cities: Funchal (-49%), Setúbal (-26%), Faro (-24%), and Vila Real (-17%). This juxtaposition of rising supply and escalating prices paints a complex picture of the current rental market in Portugal, leaving many to ponder the implications for affordability and accessibility in the housing sector.