Rents continue to rise in Portugal

in Business · 06-09-2019 01:00:00 · 0 Comments

Rent on properties in Portugal is set to rise by a further 0.51 percent in 2020, following four years of consecutive increases.

According to data from the National Institute of Statistics (INE), rent may still be increasing however it is at a slower rate than this year and last.

Rent rose by some 1.15 percent during 2019 in Portugal and by 1.12 percent in 2018, while it was up by 0.54 percent in 2017 and by 0.16 percent in 2016.

By law, rent values are generally subject to annual updates that apply automatically for inflation. The NRAU (New Urban Lease Scheme) stipulates that the INE is responsible for determining the coefficient of rent updates, which must be included in a notice to be published in Diário da República until 30 October of each year to become effective.

Only after publication in Diário da República can landlords announce to tenants the increase in rent, and the rise can only occur effectively 30 days after this notice.

In accordance with the lease law, the first update may be required one year after the term of the lease, and the following year after the previous update, with landlords having to notify the coefficient at least 30 days in advance.

If they do not wish to do so, landlords are not, however, required to apply this update.


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