Government: Housing news in Portugal

Lisbon City Council approved an agreement with the Alta de Lisboa Management Society (Sociedade Gestora da Alta de Lisboa or SGAL) to retain municipal control of land capable of hosting more than 70,000 square metres of construction. The executive aims to reserve the plots for municipal housing projects amid intense political debates over public property. The agreement passed despite friction with opposition parties, who separately introduced motions to halt the scheduled auction of ten other municipal parcels.

Prime Minister Luís Montenegro defended police handling of recent housing demonstrations as parliament opened the general debate on the 2027 State Budget (Orçamento do Estado para 2027). Montenegro stated that his government remains open to opposition proposals and attentive to living costs, but rejected criticisms from both left-wing parties and Chega leader André Ventura over law enforcement conduct.

The debate took place as demonstrations continued outside parliament in Lisbon. Across the capital, 55 housing activists arrested during a sit-in at Rossio square faced decisions by prosecutors on disobedience charges, while initial approval of the budget bill remains expected after the Socialist Party (Partido Socialista or PS) pledged to abstain on the general vote.

Clashes between police and housing protesters in Lisbon left dozens injured and 31 detained over the weekend, intensifying calls for a coordinated Iberian general strike on November 11. Demonstrators held a vigil outside the Campus da Justiça court complex on Monday as the detained protesters were brought before a judge, following a clearance operation by the Public Security Police (Polícia de Segurança Pública or PSP) at an encampment in Rossio.

The unrest comes after the Madrid Tenants' Union (Sindicato de Inquilinas e Inquilinos de Madrid) called on Portuguese labour federations to join a cross-border general strike. Speaking at the Future in Common Summit in Lisbon, union spokesperson Pablo García Bachiller urged the General Confederation of Portuguese Workers (Confederação Geral dos Trabalhadores Portugueses or CGTP) and the General Workers' Union (União Geral de Trabalhadores or UGT) to mobilize, arguing that soaring housing costs reduce workers' real wages. Protests and encampments have also spread to Porto, Faro, and Funchal, with activists demanding rent caps and opposing proposed tenancy law revisions.

Portugal registered a 41.5% surge in housing prices between 2020 and 2025, the steepest increase in the European Union, according to newly released data from statistical database Pordata. Property prices have risen 81.9% since 2010, while an OECD report identified Portugal as the member state where purchasing a home is most difficult relative to local earnings, with social housing accounting for just 1% of total stock.

In response to worsening affordability, Porto City Council announced plans to quadruple affordable municipal housing and raise the municipal property tax (Imposto Municipal sobre Imóveis or IMI) by up to ten times on vacant homes. The worsening conditions have sparked demonstrations across Lisbon and Porto, reinforced by Bank of Portugal (Banco de Portugal) data showing the richest 10% of households now own 40% of residential real estate wealth.

Policy discussions are underway regarding mandatory catastrophe insurance for Portuguese homes following widespread storm and fire damage this year. Industry data shows that roughly 45% of residential properties in Portugal lack coverage against climatic hazards like floods and wildfires, while only 19% have earthquake protection. In response to recent fire seasons, the government also expedited more than one million euros to local volunteer firefighter corps (corpos de bombeiros) to help absorb extraordinary operating costs.

The Public Security Police (Polícia de Segurança Pública or PSP) moved in early Tuesday to dismantle housing protest encampments in Lisbon's Rossio Square and central Porto. Officers in Lisbon gave demonstrators five minutes to vacate before handcuffing and arresting several people who refused to leave, while protesters in Porto voluntarily took down their tents. Activists had pitched tents to protest soaring rents and demand affordable housing, planning actions leading up to an Iberian housing strike on 11 November. Organizers previously reported dozens of injuries following an earlier police intervention in Porto, which prompted warnings from authorities that public encampments would not be permitted indefinitely.

President of the Assembly of the Republic (Assembleia da República) José Pedro Aguiar-Branco rejected a request from the Livre party to schedule an urgent debate on housing. Aguiar-Branco ruled that the proposal violated parliamentary regulations limiting mandatory urgent debates to one every fortnight, noting that Chega had called a debate 13 days earlier. Livre had sought to debate the creation of a national housing service to address the ongoing housing crisis.

The Left Bloc (Bloco de Esquerda or BE) has called on Prime Minister Luís Montenegro to withdraw the government's proposed amendments to the urban lease law following street protests against housing costs. The party argued the measure enables unrestricted rent increases and urged the government to implement rent caps and expand public housing instead. BE leader José Manuel Pureza previously declared the changes belong in the “dustbin” and said Chega had trapped itself by offering to help the Social Democratic Party (Partido Social Democrata or PSD) pass the reforms.

Portuguese Communist Party (Partido Comunista Português or PCP) Secretary-General Paulo Raimundo condemned the government's recently approved rental legislation, claiming the rules are tailored to benefit real estate investment funds. In a televised interview, Raimundo argued that demonstrators are taking to the streets due to severe cost-of-living pressures and depressed salaries rather than by choice. He also noted that the vast majority of housing protesters seek peaceful demonstrations to highlight their economic struggles.

Protests against rising living costs and housing expenses are scheduled across Lisbon, Porto, Coimbra, and Faro this weekend. Demonstrators in Porto launched a vigil in Praça D. João I following a week of encampments and clashes over affordable accommodation. Trade union confederation General Confederation of the Portuguese Workers (Confederação Geral dos Trabalhadores Portugueses or CGTP) also scheduled street demonstrations to press for higher wages and price controls.

Update: Porto Protesters Pause Overnight Camps Ahead of Saturday Demonstrations

Spokesperson João Silveira announced that demonstrators in Porto would not camp overnight in Praça D. João I on Friday due to a lack of resources, but confirmed the encampment would resume Saturday alongside planned trade union marches. Meanwhile, government officials and Lisbon Mayor Carlos Moedas addressed the ongoing unrest, with ministers insisting that street protests will not dictate housing policy.

A police operation to clear a housing protest camp in central Porto's Praça D. João I left at least 35 demonstrators injured early Thursday morning. Officers from the Public Security Police (Polícia de Segurança Pública or PSP) intervened to dismantle tents after issuing dispersal orders, prompting sharp criticism from housing rights movements who denounced excessive force. The government backed the police intervention as lawful, while civic activist movement Porta a Porta announced plans for a weekend encampment in Lisbon and nationwide demonstrations across 30 cities on November 14.

Update: Protesters Regroup at City Hall as Leaders Debate Crackdown

Housing demonstrators marched to Porto City Hall (Câmara Municipal do Porto) and later returned to Praça D. João I for a popular assembly. Protest organizers reported that injuries climbed to at least 37, with seven people hospitalized, while one police officer was also hurt. Porto Mayor Rui Moreira and Prime Minister Luís Montenegro defended the police action, while President of the Republic António José Seguro urged demonstrators to respect the law and pressed political parties to find practical housing solutions.

Update: Organizers Disperse Porto Housing Protest Over Infiltration Concerns

Organizers called an immediate end to the renewed gathering at Praça D. João I early Friday morning after reporting that outside groups had infiltrated the crowd. Housing rights activists said they alerted police after identifying individuals carrying knives who intended to cause disturbances, leading organizers to clear the square and call for a fresh mobilization on Saturday.

Lisbon Mayor Carlos Moedas warned during Republic Day ceremonies that democratic institutions risk weakening if pressing issues like security and housing remain unresolved. Moedas argued against ideological conflicts in local government, stating that practical problem-solving must take precedence. The mayor declined to answer questions regarding his communications with victims' families following the recent Elevador da Glória accident.

Dozens of activists gathered in front of the Parliament for a symbolic vigil to protest potential revisions to the tenancy law. The participants expressed concerns that the government's proposed measures could facilitate evictions and rent increases, with banners calling for lower rents and longer contract durations.

Two government initiatives, the Housing Rental Investment Contracts (Contratos de Investimento para Arrendamento Habitacional or CIA) and the Simplified Accessible Rental Regime (Regime Simplificado de Arrendamento Acessível or RSAA), entered into force this month without the required regulations. This lack of clear guidelines currently prevents property owners and investors from participating in the programs intended to increase housing supply.

The government is launching an exceptional public investment plan for the municipality of Sines to address social and infrastructure pressures caused by a surge in industrial projects. Minister of Economy and Territorial Cohesion Manuel Castro Almeida announced that the plan will focus on housing, education, and healthcare to support the region, which is currently seeing over 20 billion euros in private investment.

The government announced that it has delivered over 28,000 homes to families by August, exceeding targets set under the national Recovery and Resilience Plan. Officials aim to complete 40,000 new homes by the end of the year as part of a broader nine-billion-euro investment in public housing scheduled through 2030.

The government announced that 28,000 public housing solutions will be delivered by the end of August, surpassing the initial target set by the Recovery and Resilience Plan (Plano de Recuperação e Resiliência or PRR). Officials expect this number to reach 40,000 by the end of the year, supported by the 1st Right (1.º Direito) housing access program.

The government has established an Emergency Housing Fund (Fundo de Emergência Habitacional or FEH) to support families facing housing vulnerability. The fund is available to tenants at risk of losing their homes due to the transition of pre-1990 rental contracts to the New Urban Lease Regime (Novo Regime do Arrendamento Urbano or NRAU).

The government is resisting calls to halt a public guarantee program that allows young people up to 35 years old to finance up to 100% of their first home. While the Bank of Portugal and the International Monetary Fund have warned that such incentives may further inflate house prices, officials maintain the measure is necessary to address the ongoing housing crisis.

The Council of the European Union has recommended that Portugal prioritize affordable housing and improve access to healthcare services. The council emphasized that these investments must be balanced against the need to keep net public expenditure within established limits.

Governor Álvaro Santos Pereira stated that while there is no immediate alarm, the Bank of Portugal (Banco de Portugal or BdP) is concerned about accumulating risks in the housing credit market. New macroprudential rules taking effect on August 1 will tighten access to loans, as the governor emphasized that the core issue remains a supply deficit rather than credit availability.

The government has extended the deadline until December 31, 2026, for municipalities with over 1,000 local accommodation (Alojamento Local or AL) units to establish specific activity regulations. This exceptional measure allows local authorities more time to manage the density of short-term rentals. Recent data indicates that Porto currently has the highest concentration of these units per square kilometer in the country.

The Order of Notaries (Ordem dos Notários) warns that the government's proposal to unlock the sale of properties from undivided inheritances will not provide an immediate solution to the housing crisis. Head of the order, Jorge Batista da Silva, argues the measure may take up to 20 years to show significant impact and could increase legal disputes. Meanwhile, notaries have also called for the Tax and Customs Authority (Autoridade Tributária e Aduaneira or AT) to refund the property transfer tax (Imposto Municipal sobre as Transmissões Onerosas de Imóveis or IMT) to young people previously excluded from exemptions due to inheritance shares.

Minister of Infrastructure and Housing Miguel Pinto Luz announced that 100,000 young people have purchased homes in the last 18 months. The minister attributed this to the implementation of municipal property tax (Imposto Municipal sobre Imóveis or IMT) and stamp duty exemptions. He emphasized that the policy targets the middle class, with average transaction values around 200,000 euros.

European Council President António Costa stated it is unacceptable that young people in countries like Portugal must spend their entire salary on housing for decades. He noted that high property prices are central to public disillusionment with democratic institutions.

The Municipality of Covilhã has announced a five-year exemption from the Municipal Property Tax (Imposto Municipal sobre Imóveis or IMI) for residents under 35 years old. The measure applies to those purchasing their first permanent home within the municipality. Mayor Hélio Fazendeiro stated the initiative aims to attract and retain young talent in the region.

The Socialist Party (Partido Socialista or PS) has introduced a bill in Parliament to stop the sale of state-owned real estate. The party argues that these properties, such as the building on Rua da Madalena in Lisbon, should instead be utilized to increase the supply of affordable housing.

The Coimbra City Council is proposing a two-year partial suspension of the Municipal Master Plan (Plano Diretor Municipal or PDM) to facilitate new construction in riverside areas. The initiative aims to address the city's housing shortage and accommodate structural changes driven by recent mobility investments. Local officials hope the move will reduce restrictive rules and attract necessary development to the region.

The head of the Recuperar Portugal Mission Structure has assured that the Recovery and Resilience Plan (Plano de Recuperação e Resiliência or PRR) will be executed at 100% without the loss of European funds. While expressing confidence in the overall target, the mission identified housing as a critical area requiring urgent attention. The plan remains a central pillar for national investment and economic activity.

Portugal has submitted a request to Brussels to reprogram 516 million euros within the Recovery and Resilience Plan (Plano de Recuperação e Resiliência or PRR). The Ministry of Economy, led by Manuel Castro Almeida, stated the adjustment aims to protect funding for schools, health centers, and infrastructure projects like the Braga Bus Rapid Transit. The move follows recent storm damage and seeks to ensure all European Union grants are used before the program's deadline.