Portugal among countries with the sharpest rent increases due to tourism

Portugal ranks among the European countries where residents most acutely feel the impact of tourism on housing costs.

An estimated annual rent increase of €220 since 2019 places the country among those most exposed to tourism-driven pressure on the rental market.

According to a study by the New Economics Foundation, cited by Euronews, a common trend across the countries analysed showed that areas facing greater tourism pressure also see a higher risk of rising rents.

For residents, this means that the growth of tourism can translate into a higher cost of living, particularly in urban areas and popular destinations.

While urban centers like Lisbon are the most expensive places to rent, towns on the Alentejo Coast and the Autonomous Region of Madeira have experienced the highest rent surges since 2019. In these areas, the highest recorded rents have skyrocketed by over 70%, with Madeira leading at a staggering 76.6% increase.

Greece most affected country

Residents of Greece are the most heavily impacted. According to the study, the impact of tourism has driven up annual rents by €342 since 2019. The country has been a focal point of criticism regarding overtourism—a wave of backlash that has also sparked street protests in the Netherlands, Italy, and Spain.

Next is Spain, where tourism is estimated to have contributed to an annual rent increase of €236. Portugal follows closely with a rise of €220, trailed by Italy, where the estimated increase is €202.

Europe remains the world’s largest tourism region, accounting for more than half of all international tourist arrivals. The sector generates hundreds of millions of euros annually for national economies, but the impact on those living outside the tourism industry can be severe: increased pressure on cities, overcrowding, pollution, and, above all, higher rents.

According to a study by the New Economics Foundation, cited by Euronews, the rise in tourism flows is directly contributing to surging housing prices across several European countries, with Portugal one of the worst cases. The analysis combined Eurostat data on rent increases with air passenger volumes and current rental prices.

Source: New Economics Foundation