Around 20% of all properties rented out on one website were on the market for less than 24 hours, as the rental market hots up in Portugal.
Like most places, Portugal’s economy struggled during the pandemic, but if recent rental figures are anything to go by things are getting back on track. According to recent data published by the real estate portal Idealista, almost 19% of the properties listed for rent on its site were taken within 24 hours.
Braga topped the list of cities with 24% of properties disappearing in 24 hours. Lisbon was second at 18%. Coimbra, Setubal and Aveiro were close behind at 17%, while in Porto, 13% of properties were rented in 24 hours.
Demand is particularly high at the lower end of the market, with 28% of the properties being rented within 24 hours costing less than 740 euros p/m. In comparison, only 11% of those over 1500 euros were going quickly.
The figures in Portugal indicated a strong rental market in the face of some uncertainty about the future of the housing market. Attempts by the ECB to dampen inflation may see an increase in interest rates, making accessing a mortgage more expensive and more difficult. Many people who might previously have opted to buy are holding off and staying in the rental market a little longer as they try to work out which way the wind is blowing.
That is bringing new demand into a market in which supply is struggling to keep up. The best properties, especially at the lower end of the market, are being snapped up almost as soon as they are listed. Strong demand is keeping rents high and ensuring landlords with properties at 750 euros or less can expect faster returns.
Further up the market, people are taking longer to consider which property to go for. This could be due to more families and older professionals also choosing to rent. These consumers are keen on reasonably high-quality dwellings and are willing to pay for them, but are much less likely to make an impulsive decision.
The figures also indicate a growing decentralization of property. For years, Lisbon has always been the star of the Portuguese property market. However, demand is growing elsewhere. Porto, for example, offers an attractive alternative. A thriving economy and lower prices are attracting people at all ends of the market.
Portugal’s rental market, therefore, remains in a healthy condition. Investors can expect strong demand, high rental yields, and a hassle-free investment.
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