New figures from property platform idealista show demand for rental homes increased by 20 percent in the first quarter of 2026 compared with the same period last year.

According to the latest analysis, each rental property advertised in Portugal received an average of 24 enquiries during the opening months of the year, underlining the continued imbalance between supply and demand, particularly in the country’s major urban centres.

The market has entered what analysts describe as a more complex phase, as house purchases have gained momentum following incentives aimed at supporting home ownership, and fierce rental competition in many locations. National rents have fallen by 2.4 percent, even as the number of available rental properties dropped by 13 percent.

In some cities, homes are reportedly being secured within hours of being listed, with around 11 percent of properties attracting tenants in less than 24 hours.

Ruben Marques, spokesperson for idealista, said the figures demonstrate that demand continues to outpace supply across much of the country.

“Pressure on the market remains high, especially in the major urban centres, where competition between families for each advertised property is still very strong”, he said.

Demand rankings

Among Portugal’s district capitals, Leiria recorded the highest average number of enquiries per listing during the first quarter, with 31 contracts per property.

It was followed by Santarém with 2 enquiries, Faro with 27, and both Beja and Castelo Branco with 26.

Other cities showing particularly increased demand included Ponta Delgada and Setúbal, each averaging 23 enquiries per listing, while Lisbon registered 21 and Porto 20.

At the lower end of the scale, Guarda and Vila Real recoded the weakest demand, with an average of 12 enquiries per advertised home.

Interest growth

Demand trends varied significantly across the country over the past year, with nine major cities experiencing growth in rental interest, while eight saw declines, as Bragança and Ponta Delgada remained stable.

Porto recorded by far the sharpest increase in rental demand, with enquiries surging 82 percent year-on-year, as Beja followed with a 30 percent rise, while Coimbra surged by 27 percent and Lisbon by 24 percent.

Leiria also posted notable growth of 15 percent, with Faro and Viana do Castelo both rising 8 percent, while Aveiro and Castelo Branco recorded smaller increases.

By contrast, Vila Real saw the largest drop in rental interest, down 33 percent from the previous year, as Guarda declined by 25 percent, while Évora and Santarém both fell by 24 percent. Additionally, Setúbal, Viseu and Funchal also recorded weaker demand.

Major districts

At district level, Setúbal registered the highest average number of enquiries per listing, with 30 contracts per property, as Lisbon followed with 27, while Bragança and Portalegre both recorded 23.

The district of Porto experienced the strongest annual growth in demand, with enquiries increasing by 57 percent compared with first quarter of 2025, as Lisbon also posted significant growth of 23 percent, followed by Coimbra at 17 percent and Beja at 14 percent.

Meanwhile, Portalegre saw the steepest decline in rental demand, down 31 percent, followed by Évora at 29 percent and Santarém at 24 percent.