Coronavirus: housing rental prices are decreasing in Portugal

Data contained in Portugal’s Consumer Price Index (CPI) released by the National Institute of Statistics (INE) show falling rental prices and reflect the effects of COVID-19.

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The average value of housing rent in Portugal registered a monthly variation of -0.2% in May 2020, a value 0.3 percentage points (p.p.) lower than that registered in April. According to the Consumer Price Index (CPI), released by the National Statistics Institute in Portugal (INE), the only region with a positive monthly price variation was the Azores, with price rises of 0.3%, while the remaining regions registered negative values. Madeira, with a rate of -0.8%, was the region with the lowest value. These results show the effects that the COVID-19 pandemic has been having on the rental market in Portugal. 

The rental prices of properties per square metre (m2) in Portugal rose 2.7% in May, compared to the same period in the previous year, a 0.4 percentage point lower rate than in April, with Lisbon once again standing out. “All regions showed positive year-on-year variations in housing rental prices, with Lisbon registering the most intense increase of 3.2%”, reports the INE.

The INE again stresses that the COVID-19 pandemic and the consequent measures and restrictions on trade and services required new approaches in the calculation of the CPI and that in May 2020 it continued to be necessary to calculate the CPI without resorting to the fieldwork of surveyors.

“This is an unprecedented situation, determined by these unforeseen circumstances, and it has been necessary in a very short period of time to change the way price information is collected in order to ensure that the CPI is compiled. It should be noted that the CPI includes a significant number of prices obtained through administrative channels, which are not affected by these restrictions, with particular emphasis on housing rent from electronic rent receipts”, the institute stresses.

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