Government: Property market news in Portugal

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 government has submitted a request to the European Union Solidarity Fund for over 5.3 billion euros to cover damages caused by seven consecutive storms between January and February. The funds are intended for the reconstruction of public infrastructure and emergency interventions, particularly in the Central 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.

Local authorities across 159 municipalities have initiated procedures to potentially cancel local accommodation (Alojamento Local) registrations. Officials have opened approximately 35,000 cases, requiring a formal hearing process for each affected property registration.

A delegation from the European Parliament's housing committee described Portugal’s housing situation as severe following a two-day visit to Lisbon. Committee president Irene Tinagli highlighted an alarming percentage of properties used for tourism and a growing gap between market prices and local wages. The group called for a better balance between the tourism industry and the need for affordable housing for residents.

A study by the Institute of Public and Social Policies (Instituto de Políticas Públicas e Sociais) found that housing is the least protected right among those established in the 1976 Constitution (Constituição). While 42% of citizens believe the document reflects national aspirations, many feel the right to decent housing (habitação condigna) remains unfulfilled. The report marks 50 years since the publication of the constitutional text.

A delegation of MEPs from the European Parliament is visiting Lisbon this week to evaluate Portugal's strategies for addressing the housing crisis. The group, which includes Portuguese MEP João Oliveira, will meet with government officials to discuss affordable housing programs and the impact of current property market trends. Those seeking housing should monitor potential policy recommendations that may arise from this European-level assessment of the local market.

Protesters gathered in 16 cities, including Lisbon and Porto, to demonstrate against rising property prices and recent government measures. The platform Home to Live In (Casa para Viver) organized the marches, calling for rent caps and an end to fast-track evictions. Residents should note that further actions are planned as the housing crisis continues to affect both locals and foreign residents.

Demonstrations took place this Saturday in several cities across the country against the Government's housing measures.

Update: Protests spread to 16 cities amid rising costs

Demonstrators in 16 cities criticized the government for failing to curb real estate inflation, citing an 18% rise in house prices during the final months of 2023. Protesters highlighted the extreme difficulty of finding affordable housing, with some reporting room rentals costing as much as €500 per month.

A recent poll by the Institute of Social Sciences and the University Institute of Lisbon (ICS/ISCTE) shows that a vast majority of Portuguese residents are unhappy with the government's handling of key issues. The study found that 74% of respondents are dissatisfied with housing policies, while 64% are concerned about the rising cost of living. Residents should note that this discontent is consistent across different demographic groups and political affiliations.

The Funchal City Council (Câmara Municipal do Funchal) has approved new regulations for short-term rentals (Alojamento Local or AL) to prioritize permanent housing for residents. New license applications remain suspended until July while the city implements these rules to manage the impact of the 3,600 existing units. Property owners and those seeking housing in the Madeiran capital should be aware of these tightening restrictions.

The Casa para Viver platform delivered an open letter to the President of the Republic at the Belém Palace (Palácio de Belém) calling for the housing crisis to be treated as a national emergency. The movement is demanding rent regulation, mortgage relief, and a veto on legislation that would accelerate evictions. Residents should note that nationwide protests are scheduled for March 21 in 14 different cities.

The government has proposed new measures to speed up evictions (despejos) for tenants who fail to pay rent, arguing that increasing owner confidence will help the rental market. Critics of the plan argue it repeats failed approaches from the 2012 “Cristas Law” (Lei Cristas) and fails to protect vulnerable residents. Tenants should note that the proposal was discussed in a recent Council of Ministers (Conselho de Ministros) meeting as part of a broader housing package.

The government is set to approve changes to tenancy laws (Lei do Arrendamento) this Thursday to expedite judicial decisions for non-payment of rent. The measures, led by Minister of Infrastructure and Housing Miguel Pinto Luz, aim to restore landlord confidence and bring thousands of vacant properties back to the market. Tenants should note that while the reform targets persistent non-payment, the government has stated it will include protections for vulnerable residents.

Update: New rules for undivided inheritances and evictions

The Council of Ministers (Conselho de Ministros) has approved three bills to resolve impasses in undivided inheritances (heranças indivisas) and speed up evictions for rent arrears. Minister of the Presidency (Ministro da Presidência) António Leitão Amaro explained that after two years of an inheritance being accepted, a single heir can now initiate a property sale to prevent one person from blocking the process. The government will consult Parliament next week, aiming to finalize the laws by the end of the month.

The Portuguese government is putting five state-owned properties up for public auction (hasta pública) on March 31st to raise funds for national housing policies. The buildings, located in Lisbon and Porto, have a combined starting bid of €17.9 million, with two Lisbon properties expected to generate 96% of the total revenue. This sale is the first phase of a larger plan to liquidate 16 state assets to finance affordable housing initiatives. Those seeking housing or investment opportunities should note that the Ministry of Finance intends to channel all proceeds directly into public housing projects.

The Lisbon Chamber rejected a motion from the Left Bloc (Bloco de Esquerda) demanding measures to lower housing prices; ten councillors voted against it, including members of PSD, CDS‑PP, IL, Chega and an independent. The vote signals limited appetite on the council for the specific measures proposed by the Left Bloc and leaves housing policy changes uncertain. Renters and those seeking housing in Lisbon should track future council proposals and debate outcomes.

The Portuguese Communist Party (PCP) in Lisbon is asking that the patrimony of Santa Casa — the charitable institution that owns large property holdings — be directed towards public housing policies, Correio da Manhã reports. The proposal frames Santa Casa's assets as a potential resource to expand affordable housing and influence municipal housing strategy. Any move to repurpose those assets would involve legal and political debate and could affect future public housing projects in Lisbon. Those seeking housing in Lisbon should watch municipal and parliamentary discussions on the proposal.

The government's new housing package introduces a legal category of “moderate” housing prices that will be updated each year; Público reports the maximum “moderate” selling price has been raised to €660,000. The same coverage says rents will use a fixed base value with a ceiling of €2,300 under the new rules. The legislative package was approved this week by the Assembly, so people seeking labelled affordable housing and landlords should watch implementation details and local registries.

Observador summarises a 100‑day progress report for Lisbon's housing programme: the city delivered 310 homes and says it has supported rent payments for more than 340 families, part of a wider total of over 3,200 housing units delivered since 2021. The figures indicate the municipal administration is prioritising supply and rent support as part of ongoing housing policy. Those seeking affordable housing or rent assistance in Lisbon should follow the municipality's announcements and application windows.

Update: Mayor: rent support now triple earlier levels

The 100‑day report adds that the scheme now supports rent payments for over 340 families, which the municipality says is three times the number receiving support at the start of the previous term.

Observador reports UTAO estimates that recent government measures aimed at rents will cost around €300 million. The figure frames the fiscal scale of housing support proposals and will likely be cited in debates over affordability and public spending. Readers following housing-policy developments should note the estimate as discussions advance.

Update: ECO says cost exceeds €300m; warns rent effects

ECO reports UTAO now estimates the budget impact exceeds €300 million and warns that using €2,300 as a benchmark for a “moderate” rent could incentivise higher rents and allow landlords to absorb much of the tax benefit. Policymakers and tenants should track final design details as debates continue.