The National Statistics Institute (INE) confirmed a 2.56% increase in rents for 2027, after the release of the final inflation data for the month of August. This update is based on the consumer price index, which serves as the reference for the annual rent update in Portugal.
Landlords and tenants will be directly affected by this change, which represents the maximum value by which landlords may update rents in the coming year, unless there is a contractual provision to the contrary. This update mechanism aims to protect the purchasing power of rents in the face of inflation developments.
However, rental contracts that contain specific update clauses, establishing other criteria or values, will not be subject to this automatic 2.56% update. In these cases, the conditions contractually agreed between the parties will apply.
