Lisbon Leads as the Costliest City, While Funchal Rooms Reach €440 Per Month
Funchal is now the second most expensive city in Portugal for renting a room, according to the Annual Room Rental Report released by idealista on September 9, 2025. The average rent for a room in Funchal is €440 per month, trailing only Lisbon, where the average is €550.
Funchal surpassed Porto (€430), which was previously more expensive and is also ahead of Faro, Ponta Delgada (€400 each), and Setúbal (€375).
Funchal Prices Rise Faster Than The National Average
The report shows that rental prices for shared rooms increased by 8% in the second quarter of 2025 compared with the same period last year. Among the 20 municipalities analyzed, 13 experienced a rise in rent. The most significant increases were in Bragança (15%), Guarda and Castelo Branco (13%), Coimbra (12%), and Funchal (10%).
Meanwhile, rent prices remained stable in Aveiro, Beja, Braga, Faro, Lisbon, and Santarém. Porto was the only city to see a decline, with average room prices falling by 3%.
Renting Rooms Attracts Young Professionals, Not Just Students
Traditionally associated with students, renting rooms is now becoming popular among young professionals in the early stages of their careers. In some cases, individuals further along in the workforce also choose shared housing as a practical and cost-effective option.
This shift shows that room rentals are no longer limited to student accommodation but are an important part of the broader housing market.
Source: Idealista
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