Portugal Rental Market in 2026: Buy to Let and Get the Best ROI

According to the latest data from Statistics Portugal, the median value of new rental agreements in Portugal reached 9.46 €/m² in Q1 2026, representing a 9.1% year-on-year increase.

The number of new lease agreements also rose slightly, reaching 39,395, up 0.7% compared with the same quarter of the previous year.

While rental growth remains strong, the pace was slightly below the double-digit increase seen in Q1 2025. However, this continued growth points to sustained market momentum, making rental performance an important factor for investors considering Portuguese real estate.

Note on the data: INE’s Q1 2026 release uses a revised methodology for house rental statistics, meaning figures are not directly comparable with those published under the previous series.

Recent data underlines the level of competition in Portugal’s rental market. In the second quarter of 2026, rental properties saw a 36% increase in enquiries compared with the same period in 2025.

This suggests that tenant demand remains strong even as advertised rents show signs of moderating.

According to the latest data made available by Statistics Portugal, published in June 2026, several regions remain well above the national median, showcasing concentrated demand and consistently strong rental yields. 

In Q1 2026, the highest rental values were recorded in:

These numbers reinforce the ongoing attractiveness of Portugal’s coastal and metropolitan regions for buy-to-let investors, where demand consistently exceeds supply.

From April 2025 to March 2026, the highest rental values among municipalities were:

Lisbon remained the highest-value rental market in the country, while Cascais and Oeiras continued to show the strength of the wider Lisbon metropolitan area. Porto also remained one of Portugal’s strongest urban rental markets, although still below Lisbon, Cascais and Oeiras.

These municipalities recorded some of the highest year-on-year increases in rental values during Q1 2026, making them some of Portugal’s strongest emerging markets, where there might be a higher risk, but also potentially increasing growth.

Several regions, not just municipalities, recorded double-digit year-on-year rental growth, which is crucial for demonstrating that buying to let in Portugal is an excellent idea all over the country, not just in Lisbon.

While rising property prices may be grabbing headlines, not only for renting but also for buying, understanding the driving forces behind this growth is crucial for prospective investors. 

One key factor is the steady influx of international residents, bolstered by favourable immigration and tax incentives that position Portugal as a prime destination for professionals, retirees, and entrepreneurs alike.  

Additionally, a range of government-led initiatives, such as the Golden Visa and D2 Visa programmes, encourage property modernisation and new construction, thereby boosting the overall attractiveness of the real estate market. 

Not to mention, Portugal is simply one of the best countries in the world to live in, with many quality of life in its favour.

When taken together, these elements create a vibrant environment that benefits property owners, offering the potential for strong returns on investment through both resale value and rental income.

The Q1 2026 numbers point to a market where:

In other words: the fundamentals for rental investment remain exceptionally strong, and early investors stand to benefit the most from continued upward pressure on prices.

With more than three decades of experience in the local market, Portugal Homes provides a tailored and complete service, from finding the best listings according to your goals to managing your property and advising on your tax responsibilities. 

Our dedicated team also offers expert guidance if you wish to secure not only property but also a residency permit in one of Europe’s most desirable destinations. 

Portugal Homes is a one-stop shop for real estate investment in the country.

Contact us to discuss your investment goals and explore current opportunities in Portugal’s real estate market.