Funchal Sees Sharpest Decline in Rental Room Supply
According to a report released today by the real estate platform Idealista and contrary to the national trend, Funchal experienced a dramatic 49% drop in available rental rooms, the largest decline among all Portuguese cities. Other cities, such as Setúbal (-26%), Faro (-24%), and Vila Real (-17%), also saw notable decreases in room availability, but none as steep as Funchal’s.
National Supply of Rental Rooms Increases 36% in 2024
On the contrary, the supply of rooms for rent in shared homes across Portugal increased by 36% in the third quarter of 2024 compared to the same period last year. However, this marks a slowdown from the previous quarter, which saw a 57% rise. Despite the growing availability of rooms nationwide, rental prices increased by 7% year-on-year.
Rental Prices Soar in Funchal Amid Shrinking Supply
With the sharp reduction in supply, Funchal has witnessed a significant spike in room rental prices. Over the past year, prices have surged by 50%, making it one of the most expensive cities for renters. While Lisbon remains the most costly city for room rentals at €599 per month, Funchal now follows closely, with an average price of €450 per month, making it the second most expensive city for renters in Portugal.
Source: Idealista
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