Tenants in Portugal may face a rent increase in 2027. The National Statistics Institute (INE) estimated a rent update coefficient of around 2.56%, slightly higher than the 2.24% applied during 2026. This value is not yet definitive, as the final Consumer Price Index data for August will be known on 10 September. The coefficient is based on the average CPI variation over the last 12 months, excluding housing.
If the 2.56% is confirmed, a rent of 500 euros could rise to 512.80 euros per month, a rent of 700 euros to 717.92 euros, and a rent of 1,000 euros to 1,025.60 euros. This represents an annual increase of 153.60 euros, 215.04 euros, and 307.20 euros respectively. Landlords may choose not to apply the update or apply a lower increase than permitted.
The existence of a new coefficient does not mean that rents automatically increase in January. According to the Civil Code, rent can only be updated annually, one year after the contract start or after the previous update. Furthermore, the landlord must communicate in writing to the tenant the coefficient applied and the new value, with a minimum notice of 30 days.
The possible increase comes in a context of accelerating inflation, which reached 3.3% in August, according to the INE's quick estimate, after the 3.0% recorded in July. This rise was almost entirely caused by the increase in fuel, with energy products showing an estimated year-on-year variation of 12.2%. The official coefficient for 2027 will be published in the Official Gazette after confirmation of the August data by INE.
