Residential Rents Stabilise in Lisbon

Rents in the second quarter fell by just -0.1%.

According to Confidencial Imobiliário’s Rental Index, residential rents in Lisbon fell by -0.1% q-o-q in the 2nd quarter of 2021, interrupting the course of the strong chain reductions felt since the beginning of 2020.

The slight fall compares with the average quarterly drop of 4.3% seen since the beginning of 2020. The sharpest decline, of nearly 7%, came in the second quarter of 2020.

Confidencial Imobiliário’s Residential Rental Index monitors the behaviour of the residential rental market based on newly signed rental contracts.

Despite the continuing contraction, the pace of decline eased considerably during the second quarter of 2021. During those three months, rents were also down by 12% y-o-y, compared to the 18% drop seen in the previous quarter and the 16.8% fall at the end of 2020.

In Porto, rents continued to fall, down 1.6% compared to the previous quarter. The drop, however, also moderated in comparison with the two last quarters, when the quarterly decline reached 3.2%. In homologous terms, the rents of Porto dwellings fell 9.8% in the 2nd quarter, a decrease that intensifies when compared to the homologous fall of 8.0% observed in the previous quarter.

The average contracted rent, in absolute terms, rose to €12.5/m2 in Lisbon and €10.5/m2 in Porto, according to data from the SIR-Arrendamento.