The data presented by the Residential Rent Index show a significant decline in rental prices in major cities. São Paulo recorded “the largest annual decline in the last four years”: after a virtually flat quarterly trend (0.3%) in Q2 2024, rents fell by 2.7% in the following quarter and by 1.5% in Q1 this year.
Despite a slight recovery of 0.7% in Q2 2025, this was not enough to mitigate the overall downward trend in the year. A similar situation is observed in Porto, where “the downward trend in rents continues from quarter to quarter”, marking “the third consecutive quarter” of decline, with a change of -0.7% per year (comparing Q2 2025 with the same period in 2024).
According to Ricardo Guimarães, director of Confidencial Imobiliário, even with the quarterly recovery of rents in Lisbon, the overall annual trend is characterized by a decrease in prices. This scenario is explained by the increase in housing supply on the rental market since mid-2023 in both Lisbon and Porto. As a result of a natural market correction, when supply increases, demand decreases or stabilizes, leading to a fall in rents. Paradoxically, this increase in supply is a reaction by landlords in a market where rents had previously increased by 30% in a year, reaching record levels.
Despite a slight recovery of 0.7% in Q2 2025, this was not enough to mitigate the overall downward trend in the year. A similar situation is observed in Porto, where “the downward trend in rents continues from quarter to quarter”, marking “the third consecutive quarter” of decline, with a change of -0.7% per year (comparing Q2 2025 with the same period in 2024).
According to Ricardo Guimarães, director of Confidencial Imobiliário, even with the quarterly recovery of rents in Lisbon, the overall annual trend is characterized by a decrease in prices. This scenario is explained by the increase in housing supply on the rental market since mid-2023 in both Lisbon and Porto. As a result of a natural market correction, when supply increases, demand decreases or stabilizes, leading to a fall in rents. Paradoxically, this increase in supply is a reaction by landlords in a market where rents had previously increased by 30% in a year, reaching record levels.
