Landlords in mainland Portugal and the Islands may increase rents in 2027 up to the maximum limit of 2.56%, according to the quick estimate of inflation published by the National Institute of Statistics (INE). This value represents an acceleration compared to the 2.24% set for the year 2026. If this year-on-year variation is confirmed, a monthly rent of 1000 euros may increase by up to 25.60 euros, rising to 1025.60 euros from January, while rents of 500 euros and 750 euros will suffer maximum increases of 12.80 euros and 19.20 euros, respectively.
The annual rent update coefficient is calculated based on the average variation of the Consumer Price Index over the last 12 months, excluding housing, available until August 31. The INE's final and official data will be known on September 10, although statistical history indicates that quick estimates rarely undergo substantial corrections. The increase reflects the persistence of inflationary pressures in recent months, impacting operational costs, energy, and fuel.
The application of the coefficient is optional for the landlord, who may choose to maintain current values or adopt a lower percentage increase. The property owner is prohibited from applying an increase higher than the value calculated by the INE, except when signing new contracts after the expiration of previous ones. To exercise this right, the landlord must communicate the intention in writing to the tenant, through registered mail or documented in-person delivery, with a minimum of 30 days' notice.
The rental market maintains an upward trajectory, with the median value of rents in new contracts registering year-on-year growth of 9.1% in the first quarter. The median value per square meter stood at 9.46 euros at the beginning of the year. The evolution of prices in major urban centers, particularly in Lisbon and Porto, continues to pressure the effort rates of households. The legal framework allows tenants with proven economic hardship to access extraordinary state support to mitigate housing costs.
