Attention Landlords and Tenants in Portugal: Rents Will Increase by 2.5% in 2027

In Portugal, activity and price increases in the housing market are always on the agenda. New data that directly concerns both homeowners and tenants has been announced. According to the latest calculations of the National Institute of Statistics (INE), a 2.51% increase in residential rents is expected in 2027. Of course, this figure is a preliminary estimate for now. We will have to wait for the clear and official figures on the annual rent adjustment coefficient until September 10. How is the Rent Increase Rate Determined? According to legal regulations in Portugal, housing rents are updated according to the annual coefficient calculated by INE based on the average inflation data of the last 12 months. INE finalizes this coefficient between September and October and publishes it in the Official Gazette. Landlords can then apply the new rate to the rent starting from January of the following year. If current forecasts are confirmed, the increase rate in 2027 will surpass the 2.24% level valid for 2026. Behind this rise lies the inflation wave experienced in March, triggered by the reflection of tensions in the Middle East on energy prices. If we look at a practical calculation: A tenant who currently pays 1,000 euros in rent will have 25.1 euros more per month with the new update. How Can a Landlord Increase the Rent? What is Legal Procedure? The most confusing point in the field regarding rent increases and which can cause grievance is the procedural issue. Landlords have the right to make this update after one year of the contract, but the increase does not come into force automatically. The steps to be followed for the business to run officially and legally are clear: Official Notification Condition: The landlord must send a registered letter (or hand delivery with a signed receipt) to the tenant. Content of the Letter: The coefficient to be applied in the notification, the new rent amount and the date from which this increase will be valid must be clearly stated. Invalid Methods: Rent increase notifications made via WhatsApp message, e-mail or regular letter have no legal validity in Portuguese law. This update rule based on the INE coefficient covers a wide range of issues, including legacy contracts dating back to before 1990. Therefore, it is of great benefit for landlords not to miss the legal notice periods and for tenants to check whether the notifications they receive are in accordance with the procedure. News: Bruno G. Santos Source: INE (National Institute of Statistics)