Rental prices in Portugal fell for the third straight month in March 2026, according to Idealista, as the market continued a recent downward trend. Rents dropped 1.2% in March after decreases of 1.9% in January and 1.4% in February, bringing the national median to 16.4 euros per square meter. That figure is now below the peak of 17 euros per square meter reached in October 2025, and the decline is linked to a rise in the supply of larger residential properties. Even so, rents still increased in 12 of the 16 district capitals analyzed, showing that many urban markets remain under pressure. The biggest annual gains were seen in Bragança, Viana do Castelo and Setúbal, while Lisbon stayed almost unchanged and Porto, Viseu and Braga recorded declines. Lisbon remained the most expensive city at 22 euros per square meter, followed by Porto and Funchal at 16.8 euros, while Castelo Branco was among the cheapest at 6.9 euros. At the regional level, the Azores Autonomous Region, the Center, the Madeira Autonomous Region and Alentejo posted annual increases, while the North and the Algarve saw declines. Idealista said its index is based on median advertised listing prices and excludes atypical properties, suggesting that although short-term easing is visible, demand still exceeds supply in many areas.
