Rental values may increase by 2.24% in 2026, following the inflation data review published by the National Institute of Statistics (INE) on Wednesday. However, specific regulations must be adhered to regarding how landlords communicate this increase to tenants.
According to the final data from INE, in the last 12 months until August, the average price index variation, excluding housing, was 2.24%. This figure serves as the basis for the coefficient used for the annual rental updates for the next year under the New Urban Lease Regime (NRAU). INE’s rapid estimate released on August 29 indicated a 2.25% variation.
There are rules to follow
The actual rental adjustment rate will be published in the Diário da República by October 30.
Only after publication in the Diário da República can landlords notify tenants of the rent increase, and the rise can only effectively occur 30 days after this notice.
This year’s rate, applied in 2026, represents an acceleration compared to the previous year (applied to 2025 rents), which was set at 2.16%.
Housing crisis in Portugal? Brussels promises a plan “still this year”
The European Commission acknowledges “the challenges” related to the housing crisis in Portugal and anticipates addressing them with the planned affordable housing strategy for this year, including financing, state aid, and limits on local accommodation.
On Wednesday morning, during the plenary session of the European Parliament in the French city of Strasbourg, European Commission President Ursula von der Leyen delivered her first State of the Union address of her second mandate, announcing that “still this year,” the “first European plan for affordable housing” will be presented, which was initially scheduled for 2026.
Responding to this announcement, speaking to Lusa in Strasbourg, the European Commissioner for Energy and Housing highlighted that “one of today’s news […] is the President’s announcement […] that the agenda has been moved forward, and this is, naturally, a sign that [the Commission] takes the housing crisis in Europe very seriously.”
“The situation varies, with some countries experiencing it worse than others. I regularly meet with ministers from all countries, mayors, and other stakeholders and have had very fruitful meetings with stakeholders from Portugal. There is no doubt that Portugal is one of the countries facing challenges,” noted Dan Jørgensen.
“We sincerely hope that the EU’s proposed efforts will be helpful,” added the European Commissioner in these remarks to Lusa.
While admitting that “many things that can and should be done are of national competence,” the official pointed out that “there are also many aspects under European competence” that can be changed by the European Commission, such as state aid rules and assistance possibilities in financing.
Furthermore, “we need to look at short-term rentals,” noted Dan Jørgensen, following Ursula von der Leyen’s indication that the European Commission will propose a legislative initiative on this matter.
