Portugal rents may rise by up to 2.56% in 2027

Residential rents in Portugal may increase by up to 2.56% from January 1, 2027, based on August inflation data used to set the annual rent update coefficient.

Residential rents in Portugal may rise by up to 2.56% from January 1, 2027, under the annual update mechanism linked to inflation, according to data published by Statistics Portugal (INE). The figure matters for tenants and landlords because it sets the ceiling for rent increases in housing contracts next year.

The rate is based on the annual average of the consumer price index excluding housing, which is used to calculate the yearly rent update coefficient for different types of leases, including residential contracts. If confirmed, the 2027 increase would be slightly higher than the 2.24% rise applied in the current year.

Based on that coefficient, a monthly rent of €800 could increase by €20.46 at the start of next year, while a tenant currently paying €1,000 could see the rent rise to €1,025.60 per month, if the landlord chooses to apply the full increase.

Separately, INE’s flash estimate showed Portugal’s headline inflation, measured by the consumer price index, accelerated to 3.3% in August from 3.0% in July. The index for energy products rose 12.2%, up from 8.7% a month earlier, while unprocessed food prices increased 3.4%, compared with 3.7% in July.

Originally published at Eco.pt