Portugal currently lacks an estimated 300,000 homes to meet residential demand, according to figures from the Bank of Portugal (Banco de Portugal). Central bank governor Álvaro Santos Pereira warned that neither public nor private investment is expanding fast enough to tackle the shortage, following a decade in which Portuguese residential property prices climbed 180%. Real estate executives note that sales volumes are now beginning to moderate after years of rapid expansion fueled by €3.9 billion in foreign investment in 2025.
Portugal Faces 300,000 Home Deficit as Property Sales Cool
Wednesday, 21 October 2026AI summary
Context & Explainers
Álvaro Santos Pereira is a Portuguese economist who served as Minister of Economy from 2011 to 2013. He is a frequent public commentator on economic and public-policy issues and has used X and LinkedIn to call for radical changes to Portugal’s disaster preparedness after recent storms, so residents and policymakers often pay attention to his proposals.
Portugal’s house prices have risen faster than the EU average since 2020, and recent reports list Portugal among the countries with the largest price increases over that period. That stronger price growth has worsened affordability in Lisbon and Porto in particular, so prospective buyers and renters should check local indices and mortgage costs before deciding.
