In the second quarter of this year, fewer leases in Portugalit’s the rent value has increased compared to the previous three months.Between March and June, the median income from new lease contracts was fixed at 6.55 euros per square meterwhich represents a increase of 6.3% compared to the previous quarter, when the price was at 6.16 euros, according to the most recent data from the National Statistics Institute (INE). To illustrate this evolution, we can consider that renting an apartment with 120 m2 cost, at the beginning of the year, an average of 739 euros per month, a value that increased to 786 euros three months later. – that is, the second quarter of 2021 – the increase was even more expressive, of 8.6%since, at that time, the median price of rents was 5.41 euros per square meter. This price increase was accompanied by a decrease in the number of new leases. The INE also shows that, between March and June, 21,005 contracts referring to family accommodationin drop of 15.1% compared to the first quarterin which 24,727 families signed a lease. In relation to the same period of the previous year, however, it was an increase of 2.1%, much lower than the annual growth of 23.8% observed in the first quarter. lease contrasts with the evolution of home sales in the country: in the same period in which the number of homes rented decreased, number of homes sold increased, with sales prices reaching an all-time high. INE had already revealed that, in the second quarter, 43,607 homes were traded in Portugal for a total value of 8.3 billion euros, which represents an increase, compared to the same period of the previous year, of 4.5% and 19 .5%, respectively.
Only Alto Alentejo and Douro escape rising rents
The increase in rents from new leases extended to practically all regions of the country (23 of the 25 NUTS III sub-regions). The only exceptions were the Alto Alentejo and the Dourowhere renting a house was 4.3% and 2.5% cheaper, respectively, when compared to the previous three months. In contrast, the biggest increases were observed in Alentejo Central (+12.0%), Alentejo Litoral ( +11.1%) and Alto Tâmega (+10.2%).Also Read: Buying or Renting a House? That is the question.
More than half of new leases were in Lisbon and Porto
Looking at the Lisbon and Porto metropolitan areas, median rents increased more than in the national territory as a whole. The increases in relation to the period between January and March were 9.2% in Lisbon and 6.8% in Porto, and in both metropolitan areas, the price is much higher than the national average: 9.95 euros/m2 and 7 .06 euros/m2, respectively. That doesn’t mean they stopped being the two most sought after areas: concentrated 52% of new leases (51% in the 1st quarter) and registered an evolution compared to the same quarter of the previous year of +1.2% and +1.6%, respectively. Algarve (7.41 €/m2) and in the Autonomous Region of Madeira (7.35 €/m2). On the opposite spectrum, Behind-the-hills (2.88 €/m2) has the lowest rental prices for the new contracts. Read also: Buy a house to rent, with housing credit
Vila Nova de Famalicão, Funchal and Cascais with the biggest increases
Considering the evolution of the last year – that is, comparing the second quarter of this year with the same period of 2021 – the median lease price increased in 23 of the 24 largest cities in the country (municipalities with more than 100 thousand inhabitants). Only Barcelos escaped the rule, with values remaining unchanged. Vila Nova de Famalicão (+25.2%), Funchal (+20.7%), Cascais (+19.6%), Seixal (+15.9%) and Porto (+15.7%).Some municipalities registered growth not only in rent values but also in the number of new contracts above the national average. We are talking about Almada (+13.0% and +12.0%), Lisbon (+14.6% and +9.2%), Maia (+10.8% and +22.6%), Vila Nova de Famalicão (+25.2% and +5.1%) and Leiria (+13.2% and +9.0%). On the other hand, Gondomar (+8.4% and +0.8%), Santa Maria da Feira (+8.0% and -5.2%), Amadora (+7.3% and -2.1%), Sintra (+8.6% and -4.2%), Vila Franca de Xira (+7.5% and -4.9%), Guimarães (+2.7% and -0.4%) and Coimbra (+7.9% and -8.8%), showed increases (in and new contracts) lower than those in the country. Read more: Interest rates rising: Is it better to rent a house? Tags #rental, #houses, #rent