House rents per square meter increased 5.2% in August compared to the same month last year, according to data from the National Statistics Institute (INE). This growth represents a slowdown of 0.1 percentage points compared to July. All regions of the country registered positive year-on-year variations, with Madeira standing out for the highest increase of 6.9%.
On a monthly basis, the average value of housing rents per square meter recorded a variation of 0.3%, slightly below the 0.4% verified the previous month. The Setúbal Peninsula and Madeira were the regions with the highest positive monthly variation, both at 0.5%, with no region recording a negative variation.
Landlords may increase the value of rents by up to 2.56% in 2027, based on the average variation of the consumer price index, excluding housing, over the past 12 months until August. This value, confirmed by INE, serves as the basis for the coefficient used for the annual update of rents under the New Urban Lease Regime (NRAU).
The update rate for 2027 represents an acceleration compared to the previous year, when it was set at 2.24%. The effective update value for rents will have to be published in the Official Gazette by October 30, and owners may only communicate the increase to tenants and apply the rise 30 days after that notice.
