Portugal housing market sees 9% rent rise and 300,000 home shortage

New rental contracts signed between January and March 2026 rose by 9.1% compared with the previous quarter, according to the National Institute of Statistics. The median rent reached €9.46 per square metre, with the Greater Lisbon area leading at €14.38 per m². House valuations for bank financing hit a record €2,208 per m² in May, while apartment prices rose 19.7% year‑on‑year to €2,580 per m².

The Bank of Portugal highlighted a deficit of roughly 300,000 homes – described as “an entire Lisbon” – underscoring a severe housing shortage. The port city of Sines exemplifies the crunch: the price per square metre has doubled in three years and a one‑bedroom flat now costs about €1,500 per month. Private investors are beginning to build, but officials argue that only a large‑scale, state‑led plan—potentially a new city around Sines’ clean‑energy and data‑center hubs—could close the gap.