Rents fall -3.4% in Lisbon

New rental contracts signed in Lisbon in the second quarter of 2025 were -3.4% below the cost of rent charged during the same quarter in 2024 according to the Index of Residential Rents calculated by Confidencial Imobiliário. 

The index shows that this was the biggest like-for-like fall in rents seen in the past four years, being a considerably greater fall than the -0.9% posted for the first quarter of the year, reflecting a slow down in rent increases over the past year.

Confidencial Imobiliário recalls that after a period of strong increases in rents between the middle of 2022 and 2023, the market had progressively cooled, posting a sharp fall over the past two quarters.

After a quarterly variation of just 0.3% in 2Q of 2024 rents for new contracts in Lisbon fell -2.7% in the following quarter, and again falling -1.5% at the beginning of this year.

The second quarter saw a recovery, with a variation of 0.7% but it was not enough to offset the overall downward trend in the price of new rents.

New contracts in Porto have also been falling from quarter to quarter. In 2Q of this year they fell -0.7% on the previous quarter – the third consecutive quarterly fall in which the cost of new rents in the market fell.

Overall, rental contracts signed in Lisbon have fallen 3.4% over the past 12 months and 0.7% in Porto.

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