Rents to rise 1.15% next year

 In News

The price of renting an apartment in Portugal is set to rise 1.15% in 2019 – the highest since 2013.

According to the National Statistics Institute (INE) says it reflects inflation which reached 1.15% in August.

The inflation rate was slightly up on the 1.14% registered in July.

The 1.15% rate announced by the INE is a ballpark estimation and the statistical institute should officially confirm this amount on 12 September.

Once the amount is published in the government circular Diário da República, landlords will be able to pass on the rent rise to their tenants.

It is the highest rent rise since 2013. It means that on a rent of €500 a month, landlords can apply an increase of €5.75 which at the end of a 12 months period gives an accumulated amount of €69 on all rental contracts signed after 1999.

Last year, rent rises were substantially less, with the benchmark coefficient fixed at 0.54% meaning that a monthly rent of €500 increased by a maximum of €2.70.