Speed of House Rentals: A Look at the Velocity
In the second quarter of 2025, Portugal witnessed a surge in rapid rental activity, with several cities and regions standing out for their quick turnaround times.
More affordable rental properties, priced under €750 per month, were rented the fastest, with 13% of listings finding tenants within a single day. This trend was particularly prevalent in Madeira (43%) and Saõ Miguel (33%), followed closely by Setúbal (23%) and Lisbon (20%).
The rapid rental activity in these regions can be attributed to their affordability and higher rental yields, making them attractive investments for landlords and enticing quick rental decisions. Cities like Santarém (€1,295/m² with 8% rental yield), Coimbra (€2,002/m² with 6.9% yield), Leiria (€1,574/m² with 6.3% yield), and Évora (€2,253/m² with 6% yield) demonstrated this correlation, as they boasted both lower average prices per square meter and higher rental yields.
Secondary cities outside Lisbon and Porto, such as Setúbal, Aveiro, and Braga, also showed faster rental trends due to their affordability and attractive returns for landlords, which in turn led to quicker tenant uptake.
In contrast, prime areas like Lisbon had higher prices (€5,655/m²) and somewhat lower rental yields (4.7%), which likely contributed to relatively slower rentals compared to the more affordable regions.
In summary, more affordable rental properties in less expensive regions with higher rental yields are rented faster, and regions like Santarém, Coimbra, Leiria, and Évora are notable for high rental yields, indicating strong tenant demand and likely express rentals. Other cities, such as Madeira, Saõ Miguel, Setúbal, and Aveiro, also showed rapid rental activity, making them attractive options for both tenants and landlords.
Real estate investors in Portugal might find opportunities in secondary cities like Setúbal, Aveiro, and Braga, given their faster rental trends and attractive returns. The housing market in these regions, such as Santarém, Coimbra, Leiria, and Évora, offers both lower average prices per square meter and higher rental yields, resulting in quicker tenant uptake. Conversely, prime areas in Portugal, like Lisbon, although having a higher price per square meter, may exhibit slower rental activity due to somewhat lower rental yields.
