Exorbitant housing costs force Portuguese to shell out 70% above desired levels
High Rental Disparities Reported in Select Portuguese Municipalities
A recently conducted study indicates a persistent trend in Portugal's rental market, as the advertised prices for properties in numerous municipalities routinely surpass the desired costs that potential renters are willing to pay. The Lisbon district is particularly affected, with Cascais leading the disparity followed closely by Lisbon itself.
The municipality of Cascais heads the list of disparities within the Lisbon region. Properties listed for rental are suggested at an average of €2,700, while the demand for such units hovers around €1,600 — a gap of 69%. Lisbon mirrors this disconnect, with an average difference of 50% (€1,200 in demand vs. €1,800 advertised price). Mafra and Odivelas present similar discrepancies, with both municipalities having average demand values of €1,000 and offered prices of €1,500.
The analysis unveils a prevalent strain on the rental market in Lisbon and the country's other major urban districts. Although Lisbon shows the most significant discrepancies, there are also considerable variations in Porto's municipalities, which could pose challenges in securing affordable housing.
According to the study, an average one-bedroom apartment in central Lisbon has an approximate monthly rental fee of €1,388, while Cascais lists rental properties at €2,700 on average, with demand hovering around €1,600. In Mafra and Odivelas, the advertised rent price averages at €1,500. These figures underscore the mounting pressure on the rental market in these areas, with prices occasionally exceeding what many people can reasonably afford.
[1] Source: Study on Rental Price Disparities in Portugal.[2] Source: Numbeo — Cost of Living Index https://www.numbeo.com/cost-of-living/country_result.jsp?country=Portugal&city=Lisbon
- The study reveals that there is a noticeable difference in the home-and-garden sector, as the demand for rental properties is significantly lower than the advertised prices in certain municipalities, such as Cascais, Lisbon, Mafra, and Odivelas.
- As the cost of living in Lisbon increases, particularly in the home-and-garden sector, many individuals may find it challenging to maintain an affordable lifestyle due to high rental prices, particularly in high-demand areas like Cascais.