Housing necessitates being recognized as a country-wide urgency.
In Portugal, a severe housing crisis is causing concern among experts and policymakers, as rising rents, limited supply, and affordability challenges impact both locals and newcomers.
Sociologist Sandra Marques Pereira, a researcher at DINÂMIA'CET-Iscte, and retired Lisbon City Council employee Isabel Santana have highlighted housing as the country's most pressing unresolved problem[1]. Rent increases in Lisbon have surged over 35% from early 2023 to mid-2025, outpacing local income growth and creating affordability gaps[1].
The imbalance in housing markets, driven by increased expat inflows, tourism, and economic growth in tech hubs like Lisbon and Porto, has resulted in demand surpassing supply[2]. Additionally, restrictive rental practices, such as requiring long-term upfront payments or guarantors, complicate access to housing for foreigners and lower-income residents[1][3].
Newcomers often face legal and contract issues, including unfair lease clauses or unregistered contracts, leading to vulnerability and difficulties in securing legitimate, long-term housing[3].
Experts propose a combination of regulatory controls, increased housing production, tenant protections, and public policy support to alleviate the crisis. Proposed solutions include rent caps, incentives for new construction and renovation, and strengthening tenant protections through monitoring lease agreements[1][3].
Sandra Marques Pereira and Isabel Santana emphasize the importance of addressing not just supply, but also the quality, legality, and accessibility of housing to ensure equitable solutions that can stabilize markets and improve living conditions amidst rising prices and demographic pressures[1].
Isabel Santana has advocated for a national housing emergency plan, large-scale construction, and coordination between central administration and local government[1]. She believes that municipalities play a role, but their measures are quick fixes due to the vast scale of needs[1].
In the past, efforts like the Special Rehousing Program (PER) in 1993, which removed residents from slums in Lisbon and Porto, demonstrated political awareness of housing precariousness, closely linked to the fight against poverty[1]. However, both experts agree that the situation has worsened, with precarious housing conditions much more widespread currently compared to the 1980s and 1990s[1].
Sandra Marques Pereira does not believe the housing situation will improve without a permanent housing program and a shift in treating housing as a national priority[1]. Among those being evicted are the elderly, who are victims of real estate bullying due to local housing issues[1].
In conclusion, Portugal's housing crisis in 2025 is marked by soaring rents, supply shortages, and systemic rental market challenges. Experts advocate a combination of regulatory controls, increased housing production, tenant protections, and public policy support to alleviate the crisis, recognizing the complexity of market and financial dynamics involved.
- The housing crisis in Portugal is causing concern among experts, as it is a pressing concern that is affecting both locals and newcomers, impacting their personal-finance and real-estate investments.
- Experts suggest a combination of several methods to alleviate the housing crisis, including rent caps, incentives for new construction and renovation, and strengthening tenant protections for both locals and foreigners in the housing-market.
- The lack of affordable housing and the inability to secure legitimate, long-term housing options can lead to vulnerability for newcomers, making investing in the Portuguese real estate market challenging.
