Destination Services — Navigating Porto’s real estate market in 2024: What you need to know
As we step into 2024, Porto’s real estate and rental markets remain highly dynamic, presenting both challenges and opportunities for tenants, homeowners, and companies supporting employee relocations. Here’s a closer look at the current landscape, key trends, and expert advice from Santa Fe Relocation.
Current market overview
Porto is facing a shortage of properties available for rent, both for short-term and long-term stays. The rising demand has been driven by various factors, including Portugal’s tourism boom, favourable weather, and fiscal benefits attracting foreign residents. This increase has also pushed rental prices higher across the city and its outskirts.
At the heart of this tight market is a limited supply. With insufficient new construction in recent years, the existing inventory is not enough to satisfy the growing demand. As a result, quality properties often stay on the market for only a few hours before being rented.
Key rental trends
For anyone navigating Porto’s real estate market in 2024, flexibility and quick decision-making are essential. Given the competitive nature of the market, potential renters are advised to confirm selected properties as soon as possible after visiting them.
- Landlords’ expectations have shifted with the demand surge, often requiring a guarantor or asking for up to six months’ rent in advance. This is especially true for areas where rents remain relatively low.
- A new trend in the market includes bidding wars, where tenants offer more than the listed rent to secure properties.
Top rental areas in Porto
For those looking at long-term rentals, Foz, Boavista, and Vila Nova de Gaia are the main focus points. While Vila Nova de Gaia is smaller and more limited in terms of options, it is highly desirable due to its proximity to highways connecting Porto with other business hubs.
However, options for larger properties—especially three- and four-bedroom units—are scarce, particularly around private international schools, which are a priority for many expatriate families.
Temporary rentals and high prices
Temporary accommodation, usually found in the city centre and Boavista, has also seen steep price increases, particularly during the high season, which now extends for much of the year. For example, a one-bedroom apartment now costs between €1,800 and €2,500 per month, while larger units can easily exceed €3,500 per month during peak periods.
Expert advice for relocation and employee support
For companies managing employee relocations to Porto, adjusting rental budget policies is crucial. Setting the right expectations can help employees navigate this fast-moving and competitive market. Given the scarcity of available homes and the rapid rise in rental costs, it is recommended to:
- Plan ahead and secure housing options early.
- Be flexible with housing preferences, as larger properties may be harder to find.
- Prepare for upfront costs, especially for long-term rentals, where landlords might request significant deposits.
In a volatile and competitive market like Porto’s, having an experienced relocation partner like Santa Fe can make all the difference. By staying informed and adaptable, your team can make smooth transitions into this bustling and vibrant city.
For further assistance and personalised advice, please contact your designated Santa Fe Relocation consultant.
Fruzsina Hodson
Senior Manager Group Destination Services
Santa Fe Relocation
fruzsina.hodson@staging.santaferelo.com
