More rooms on Portugal’s housing market, but also higher prices
It seems that demand still exceeds supply, which maintains this situation in the Iberian country.
Renting a single room in a shared flat or house has become an increasingly popular form of accommodation in the tight housing markets of European cities. Today, the main customers in this market are no longer just students, but also newcomers to the cities, young people who have just moved out of their parents’ homes and are striving for economic emancipation.
In this context, the real estate website Idealista has published a study on the overall situation of the rental room market in Portugal, which shows both positive and negative trends. On the positive side, the supply of single rooms is increasing (although not in all cities), but on the other hand, the prices for these rooms have also increased compared to last year.
Some cities, some numbers
If you think of the biggest cities when it comes to expensive rooms, you’re not wrong. In the Portuguese capital Lisbon, you’ll have to pay about 550 euros per month for an average room, followed by Porto with 445 euros per month. However, the third place is shared by the capital of the autonomous region of Madeira, Funchal, and the largest city in the Algarve, Faro, where an average room costs 400 euros.
In terms of relative increases, however, it is Madeira’s capital that takes the cake. Compared to the previous year, rooms in Funchal are 60% more expensive in 2024. This is also where the housing shortage is most pronounced in the entire country. In Funchal, there are 73% fewer advertisements for rooms to rent than in 2023.
The biggest opening in this segment of the housing market in the Iberian country was observed in the city of Castelo Branco, located in the rural hinterland near the border with Spain. Here, new residents can experience a piece of authentic Portuguese life. The increase in rooms available for rent is 112% compared to the previous year.
