Image: DECO ProTeste

Rents in 2024 set to increase 6.94%

Unless government moves in with new limits

Rents in 2024 are set to increase 6.94%, unless the government enforces a limit, as it did last year.

Reports explain that the average rate of inflation in August (now confirmed at 3.7%) serves as a reference for the increase in rents that landlords can demand the following year. 

Thus yesterday’s confirmation of the August increase by INE, National Statistics Institute, was accompanied by the figure that serves as a benchmark for next year’s rent increase.

The average year-on-year inflation rate excluding the housing sector was 6.94%, which means that rents will rise by almost 7 per cent if the government doesn’t impose any curbs, as it did last year, in accordance with the New Urban Lease Regime (NRAU).

In 2022, the inflation rate excluding housing was 5.43%, but PS Socialists set limits for landlords, including tax incentives, at 2%.

This far, the government has not decided whether it will do the same in 2024.

Speaking at the end of August, Housing Minister Marina Gonçalves said “various hypotheses on the table” were being evaluated, “recognising that any decision must be taken quickly”, writes Rádio Renascença.

Data from the Imovirtual portal last week indicated that renting a house in the Porto district costs an average of €1,415 . This figure could rise by almost 100 euros to €1,513 if the government doesn’t step in with new curbs, says the online.

In Lisbon, the average rent, according to a Century21 study with data from the first two quarters of the year, is €1,463, meaning this could increase to €1,564.

The median rent for new contracts in the first quarter of 2023 was €6.74 per sq m in rural areas and €10.26 per square metre in the Lisbon Metropolitan Area, according to INE data – having risen by more than 9% compared to the same period in 2022…ND