Portugal's Housing Market Faces Record High Rents and Deep Affordability Gaps

Average rental prices in Portugal have risen to €16.27 per square metre, with Lisbon leading at €20.56 per m². Faro follows at €17.22, while interior districts such as Viseu and Vila Real fall below €6 per m². The same report shows buying prices also remain steep, with Lisbon at €5 802 per m², well above the national average of €3 674.

The price surge translates into severe affordability pressures for households. A typical couple must allocate about 52 % of their monthly income to purchase a two‑bedroom apartment and 54 % for a three‑bedroom house. In the highest‑cost districts, mortgage payments can exceed 70 % of earnings, whereas in poorer regions the burden drops to around 12‑16 %.

These disparities highlight a housing market where lower‑priced, smaller units command higher per‑metre rates, and a concentration of available rentals in a few districts leaves many areas with limited supply.