Rents in Lisbon peaking in 2023: see the evolution from 2018 until now
According to CASAFARI’s Area Insights analysis of 53,887 two-bedroom property listings across 821 sources in Lisbon, average asking rents dipped during the 2020-2021 pandemic to €10-€18 per square metre in 2021. Prices rebounded sharply in 2022, peaking between January and July 2023 at €14/m² in the most affordable neighbourhoods and €28/m² in the most expensive.
Pre-pandemic period: how were rents in Lisbon back then?
In 2018, average asking rents in Lisbon varied from €23 per square metre in the most expensive areas to €10 in the most affordable ones, according to CASAFARI data. In 2019, asking prices in the prime neighbourhoods adjusted slightly to €21/m², while the most affordable areas rose to €11/m².
Taking into account a two-bedroom apartment of 70m², this would mean prices between €700 and €1,610 for 2018, whereas prices for properties of the same size varied from €770 to €1,470 for 2019.
How did the 2020-2021 pandemic affect asking rents in Lisbon?
As expected, the coronavirus pandemic hit the property market hard. Holiday rentals became empty for months, while long-term rentals were affected by the financial instability, with families holding their decisions of moving to another property due to insecurity.
That being said, the Portuguese property market felt the effects of this major event, but without monumental changes to prices, showing signs of great resilience.
According to CASAFARI listing data, average asking rents in Lisbon fell to €19 per square metre in the most expensive areas and remained at €11/m² in the least expensive during 2020. The year 2021 saw a further adjustment, reaching €18/m² and €10/m² respectively.
What does it mean? That while the pricey neighbourhoods suffered significant drops in rent, the inexpensive ones remained stable. Looking back at our example of an apartment with 70m², in 2020 the rent for such property cost from €770 to €1,330, while in 2021 it ranged from €700 to €1,260.
How did Lisbon asking rents recover in 2022 and peak in 2023?
The recovery following the downturn was steady.
During 2022, average asking rents in prime areas reached €23 per square metre according to CASAFARI data, returning to 2018 levels, while the most economical neighbourhoods registered €11/m².
Data from January to July 2023 showed asking rents peaking across the capital: the most expensive areas reached €28/m², while traditionally affordable neighbourhoods climbed to €14/m².
This can be a result of both an increased influx of digital nomads moving to the city and property owners trying to make up for the losses of the previous years.
Which Lisbon neighbourhoods had the highest and lowest asking rents?
Across time, a few areas of the city remained on the top or bottom positions when it comes to prices for a two-bedroom apartment.
Among the most affordable were Beato, Lumiar, Marvila, Santa Clara, Carnide, São Domingos de Benfica and Olivais. As for the most expensive, the neighbourhoods of Santo António, Misericórdia, Santa Maria Maior, Avenidas Novas, Estrela and Campo de Ourique recorded the highest asking rents in Lisbon.
To explore in-depth market reports, sign in to the CASAFARI platform or consult our Area Insights API documentation.
Frequently asked questions
How much did asking rents in Lisbon reach at their 2023 peak?
Between January and July 2023, CASAFARI’s analysis of two-bedroom listings showed average asking rents in Lisbon peaking at €28/m² in the most expensive parishes and €14/m² in the most affordable ones. This was an increase from €23/m² and €11/m² respectively in 2022.
How did the COVID-19 pandemic affect rental prices in Lisbon in 2020 and 2021?
According to CASAFARI data, average asking rents in the most expensive Lisbon neighbourhoods fell from €21/m² in 2019 to €19/m² in 2020 and €18/m² in 2021. For a standard 70m² two-bedroom flat, this translated to asking prices between €1,260 and €1,330 per month. Meanwhile, asking rents in the most affordable parishes remained relatively stable at €11/m² in 2020 and €10/m² in 2021.
Which are the most affordable neighbourhoods to rent a two-bedroom flat in Lisbon?
Across the 2018-2023 period analysed by CASAFARI, several parishes consistently registered the lowest average asking rents for two-bedroom apartments. These include Beato, Lumiar, Marvila, Santa Clara, Carnide, São Domingos de Benfica and Olivais.
Which Lisbon neighbourhoods have the highest asking rents?
CASAFARI’s 2018-2023 market data shows that the highest average asking rents for two-bedroom flats in Lisbon were consistently recorded in prime central areas. The top parishes include Santo António, Misericórdia, Santa Maria Maior, Avenidas Novas, Estrela and Campo de Ourique.
How can property professionals track rental market trends in Lisbon?
Property professionals can use CASAFARI’s Area Insights and market reports to monitor asking prices, stock levels and historical time series at parish level across Lisbon. Developers and data teams can also access this data programmatically by consulting the Area Insights API documentation.