Portugal Sees 50% Jump in Temporary Housing Market
The number of homes available for short-term rental in Portugal reached its highest point by the end of 2024, according to data from Idealista. This form of rental - meant for stays shorter than one year - has become increasingly common for professionals, students, and tourists seeking a place to stay for several weeks or months.
By the end of 2024 and in Portugal, 3,599 homes were listed for this type of rental - 50% more than the year before. Experts believe this may be a response to legal uncertainty surrounding local lodging regulations, as homeowners search for new ways to make use of their properties.
The stock of temporary rental is 50% higher than that observed at the end of the previous year, which can be explained by the legislative instability experienced in Local Accommodation over the past year, as well as the demand for an alternative aimed at optimizing the financial return of housing.
High Demand Meets Growing Supply
While the number of short-term rental homes has increased sharply, the number of people interested in these homes has also remained high. In Funchal, listings received more than 20 inquiries per property in late 2024. However, with more homes available, competition among listings has spread out, leading to a 28% drop in contacts per home compared to the year before.
Even so, demand remains stronger than before the pandemic. Interest in this type of rental is now 65% higher than in late 2019, reaching a peak during the summer of 2022. The situation suggests that both residents and property owners continue to see value in short-term housing.
Short-Term Rental Prices Remain High in Funchal
Funchal stands out with one of the highest short-term rental rates among mid-sized cities, at 16.8 €/m² per month - behind only Lisbon (24.6 €/m²) and Porto (19.5 €/m²). Also, despite being the 24th biggest municipality in Portugal, Funchal ranks among the eight cities in Portugal with 30 or more homes available for short-term rental. With 15,9/m², The price per square meter for long-term rentals is surprisingly not much lower.
Source & Data: Idealista.pt
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