House rents to rise 2.25% in 2026
The inflation rate used as the basis for updating house rents stood at 2.25% in August, according to the flash estimate released on Friday by INE.
From 1 January 2026, rents may rise by up to 2.3% if landlords so wish. The inflation rate used to calculate the annual rent adjustment coefficient stood at 2.25% in August, according to data released on Friday by INE, the National Statistics Institute.
The annual average of the CPI excluding housing is used to calculate the annual update coefficient for various types of leases, including housing. For next year, landlords can make slightly more significant increases compared to the current year, when the increase reached 2.16%.
The Consumer Price Index (CPI) rose by 2.8% year-on-year this month, according to INE’s flash estimate. The official data will be released on 10 September.
If this figure is confirmed, it means that a current rent of €800 could increase by €18 at the beginning of next year, while a tenant paying €1,000 in rent could see their rent rise to €1,022.50 per month.
Despite the new increase, the value of the rent update coefficient maintains the slowdown recorded in 2024, after years of significant increases that even forced the Government to impose a brake. In 2023, the value of the coefficient was almost 7%.
Last year, rental prices in Portugal rose by 10% and the median rent rose more than wages in Portugal, as shown by the median of new contracts signed in the first quarter of 2025 compared to the same three months last year. In a five-year comparison, the increase in rents was over 70%.
