LISBON, June 26 (Xinhua) -- The median rent on new lease contracts in Portugal reached 9.46 euros (10.78 U.S. dollars) per square meter in the first quarter of 2026, a 9.1 percent increase compared with the same period last year, national statistics institute INE said Friday.
Analysts consulted by Xinhua have pointed to a chronic structural imbalance between high demand and scarce housing supply as the primary driver of sustained price increases.
New construction remains insufficient to meet current market demand, while foreign investors with greater purchasing power compete directly with local buyers, further squeezing availability and pushing prices higher.
Used properties have appreciated faster than new builds due to the lack of ready-to-occupy options, and the median bank valuation for mortgage purposes has surpassed a record 2,200 euros (2,508 dollars) per square meter.
The government has introduced a set of measures aimed at easing the situation over the medium term, including a reduction of VAT on housing construction to lower the cost of new homes, first-home purchase tax exemptions for young buyers, and ongoing negotiations with banks to facilitate mortgage access for residents.
However, whether these measures will be enough to reshape market dynamics remains uncertain, given the scale of the supply shortage and continued pressure from external demand. ■