The median cost of renting a home stood at €16.4 per square metre at the end of December, amid growing incentives for home purchases.

Rents soared in most major cities and regional capitals, with Porto the sole exception, recording a year-on-year fall of 1.4 percent. The sharpest annual rises were seen in Ponta Delgada (22.6 percent), Viana do Castelo (12.3 percent), and Leiria (12 percent). More moderate increases were registered in Coimbra and Braga (both 4 percent), Santarém (3.6 percent), Bragança (3.3 percent) and Aveiro (3 percent), while Évora (1.7 percent) and Lisbon (1.2 percent) posted smaller gains.

Lisbon remained the most expensive city in which to rent, with a median price of €22.1 per square metre, followed by Porto (€17.4) and Funchal (€16.2). At the other end of the scale, the most affordable district capitals were Bragança (€6.2 per square metre) and Viseu (€7.8).

At district and island level, rents rose in 17 of the 20 territories analysed and fell in three: Guarda (-5.9 percent), Beja (-1 percent) and Porto (-0.9 percent). The highest annual increases were recorded on the island of São Miguel (22.1 percent) and in Viana do Castelo (12.1 percent). Lisbon remained the most expensive district overall, at €20.2 per square metre, followed by Porto and Madeira, both at €15.5.

Regionally, the North was the only area to see rents fall over the year, down 1.1 percent. The largest increase was registered in the Azores (17.9 percent), followed by the Algarve (5.6 percent), the Centre (5.3 percent) and Alentejo (2.7 percent). The Lisbon Metropolitan Area once again remained the most expensive region to rent in, at €19.6 per square metre, while the Centre continued to be the most affordable, at €9.9.

The Idealista property price index is based on advertised asking prices, excluding atypical listings and outliers, and uses median values from active listings to reflect market trends.