The annual urban rental increase coefficient has been published in the Diário da República (Aviso N.º 23099/2024/2 de 18 de outubro), which means the rate of 2.16% already published by the National Statistics Institute (INI) now becomes absolutely official. This rate applies to residential, commercial, industrial and rural rentals.
Owners wishing to update renewable rental contracts by this percentage, must notify their tenants by means of registered letter with acknowledgment of receipt at least 30 days before the increase is applied, according to Article 1077.º of the Civil Code, and the new price can be rounded up to the nearest cent.
We remind our readers that the owner has complete freedom for establishing rental price updates as long as the mechanism is properly described in writing in the contract and both owner and tenant agree. Otherwise, and even if not specified in the contract, this official increase percentage may be applied.