On September 10, INE published the final data on average inflation, excluding housing, for the last twelve months. In line with forecasts, rents will rise again next year after already increasing by 2.16% this year. Until August, the average variation in the Consumer Price Index, excluding housing, was 2.24%, which serves as the basis for the coefficient used for the annual update of rents for next year, under the New Urban Lease Regime (NRAU). Thus, in 2026, rents may be updated by up to a maximum of 2.24%.
The rent adjustment coefficient will be published in the Official Gazette by October 30, and only then will landlords be able to notify tenants of the increase. This is because adjusting rent to inflation is neither automatic nor mandatory. Landlords interested in updating the rent must notify the tenant, by registered letter with acknowledgment of receipt and at least 30 days in advance, of the new rent amount, as well as the coefficient applied and other relevant factors used in its calculation.
The rent can only be updated one year after the start date of the contract or the last update. Failure by the landlord to update the rent will affect the recovery of any increases not made. However, the coefficients may be applied in subsequent years, provided that no more than three years have passed since the date on which they could initially have been applied.
Rents contracted in Lisbon fell in the second quarter
According to Confidencial Imobiliário's Residential Rent Index (SIR-Arrendamento) for the second quarter of 2025, the values of new rental contracts signed in Lisbon show some cooling. Rental contracts were 3.4% lower than in the second quarter of last year.
In Porto, in the second quarter of 2025, contracted values fell once again, showing a quarterly variation of -0.7%. This is the third consecutive quarter in which rents in this market have fallen. However, as these are residual chain fluctuations (between -0.3% and -0.7%), the year-on-year evolution remains positive. Thus, rents in Porto show a variation of 0.7% when comparing the second quarter of 2025 with the same period in 2024.
According to SIR-Arrendamento, the average rent for a two-bedroom apartment in the second quarter of 2025 was €1,544 in Lisbon and €1,260 in Porto.
Translated with DeepL.com (free version)
Image credits: © Eskay Lim | Unsplash
