Portugal rental listings drop 22% in Q2 as mortgage demand eases

Rental supply in Portugal fell 22% in the second quarter, reaching 40,716 long‑term rental units compared with the same period in 2025. The sharpest declines were recorded in Coimbra (‑58%) and Porto (‑52%), with Lisbon also down 27%. In contrast, supply rose in twelve districts, led by Funchal (+58%), Viana do Castelo (+57%), Vila Real (+50%) and Ponta Delgada (+44%). Overall, fourteen of the twenty districts showed growth, the highest increases being in Beja (+65%), the Madeira islands (+50%) and Bragança (+44%).

Idealista spokesman Ruben Marques warned that the real pressure remains in the major urban centres where the supply shortage puts families under strain. The Bank of Portugal reported a modest decline in mortgage‑loan applications for the quarter, reflecting a cautious outlook on the housing market and prevailing interest‑rate levels. Demand for SME loans also slipped slightly, although total credit volume stayed unchanged, and banks applied marginally tighter criteria for mortgage lending.