In the period marking one full year of the pandemic, housing rents fell by 6.0% in mainland Portugal, according to data published by Confidencial Imobiliário. The declines reached 18% in Lisbon and 8% in Porto. The rates stem from the Residential Rents Index, which monitors the behaviour of the residential rental market based on new contracts signed during the period.
The year-on-year rate worsened considerably in the first quarter of 2021, falling to -0.7%, breaching negative territory for the first time in more than six years.
Rents in Portugal also fell quarter-on-quarter. Rents in the first three months of 2021 decreased by 2.6% compared to the fourth quarter of 2020, consolidating four consecutive quarterly drops.
In Lisbon, where prices first began to fall, the year-on-year decline of 18% followed the 16.8% drop at the end of 2020. Rents in the country’s capital fell by 3.7% q-o-q in the first quarter of 2021, falling for five consecutive quarters, with contractions ranging from -2.3% to -6.9%.
In the northern city of Porto, rents fell by 3.2% in the 1st quarter of 2021, compared to a drop of 4.5% during the last three months of last year. Rents have now fallen for three consecutive quarters in Porto.
Housing rental prices in Portugal posted an average of €9.4/m2 in the contracts signed during the first quarter of 2021. The equivalent figure in Lisbon reached €12.2/m2 and €10/m2 in Porto.