Data from the European statistical office, Eurostat, shows that Portugal led the eurozone in housing price growth during 2025. Property prices in the country rose by 17.6% over the year, marking the highest increase among all member states in the currency bloc.

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.

The government approved reforms to succession law to prevent properties from being stuck in undivided inheritances (heranças indivisas). Under the new rules, a single heir can initiate a sale after a two-year deadlock, and the deadline to accept an inheritance will drop from ten years to two. Property owners and heirs should note these changes aim to increase housing supply by resolving long-standing family disputes.

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.

A new study from the Bank of Portugal (Banco de Portugal) shows that median-income families now face a housing effort rate (taxa de esforço) of 48%, well above the recommended 40% limit. In response to housing and competitiveness challenges, the government is reallocating 2.5 billion euros from the Portugal 2030 (Portugal 2030) EU funding framework. Those seeking housing should note that mortgage payments in some municipalities have nearly doubled over the last four years.

Update: Bank of Portugal reports 140% house price rise since 2016

The Bank of Portugal reports that housing prices have surged by 140% between 2016 and 2025, with bank valuations reaching a new record of 2,122 euros per square meter in February. In response to the crisis, the Lisbon City Council (Câmara Municipal de Lisboa) has approved a 128 million euro investment to renovate housing and public infrastructure through municipal agencies. Lisbon residents should note that this funding targets both affordable rentals and local schools.

A new analysis indicates that Portugal is among the Eurozone countries most affected by European Central Bank (Banco Central Europeu) interest rate increases. Because a high proportion of Portuguese mortgages (crédito habitação) have variable rates, rising costs lead to a sharper contraction in household spending compared to other European nations. Economists also warn that the national economy is showing signs of slowing down due to broader European trends and geopolitical tensions. Those with variable-rate mortgages should monitor ECB policy shifts closely for impacts on their monthly budgets.

The Tax Authority (Autoridade Tributária e Aduaneira or AT) has ruled that delays in municipal licensing do not justify extending the 36-month deadline for reinvesting capital gains from a primary residence. This means taxpayers who fail to complete a new home purchase within the legal timeframe due to bureaucratic delays will still face Personal Income Tax (Imposto sobre o Rendimento de Pessoas Singulares or IRS) on those gains. Tax-paying residents should note that the AT maintains a strict interpretation of the law regardless of external delays.

The total value of housing sales in Madeira fell to €968.8 million in 2025, a 5.6% decrease from the previous year. Data from the Regional Directorate of Statistics (Direção Regional de Estatística) shows a particularly sharp 30.9% decline in the sale of new homes. Property owners and potential buyers in the archipelago should note that while new builds saw a slump, the market for existing homes remained more resilient.

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.

Homeowners with a mortgage (crédito habitação) that is due for review in April will see an increase in their monthly bank repayments. While the impact on very recent contracts may be limited, those with older variable-rate agreements face higher costs due to interest rate trends. Mortgage-holders should note that many younger borrowers are increasingly opting for mixed interest rates (taxas mistas) to ensure more predictable monthly costs.

The government is preparing changes to housing policy that would allow one heir to force the sale of an inherited property even if others disagree. The plan also includes measures to accelerate evictions for non-compliance to encourage more owners to put houses on the rental market. While the government is ending the previous policy of forced leasing (arrendamento forçado), critics argue the new “forced selling” measure is equally controversial. Property owners and heirs should be aware of these upcoming legal shifts.

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.

Complaints regarding real estate mediation (mediação imobiliária) reached a historic high in 2025, driven by issues with property reservations and customer service. Many disputes involve the promissory purchase and sale agreement (Contrato de Promessa de Compra e Venda or CPCV). Those seeking housing should be aware of their rights when dealing with agents and ensure all reservation payments are properly documented.

The Tax and Customs Authority (Autoridade Tributária e Aduaneira) has clarified that the capital gains tax (mais-valias) exemption for reinvesting in a primary residence is limited when a property owned by one person is sold to buy a home jointly. In such cases, the tax benefit only applies to the share of the new property corresponding to the original owner, typically 50%. Homeowners planning to sell a property they purchased while single to buy a new home with a partner should be aware of these potential tax liabilities.

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 average interest rate on renegotiated home loans fell in January to 2.81%, slightly below the rate on new mortgage contracts (2.84%) — a reversal driven by borrowers securing better terms in renegotiations. The fall was small (0.04 percentage points) but notable because renegotiation now, in some cases, produces a cheaper deal than taking a new loan. Homeowners considering refinancing should compare offers and ask banks about renegotiation options or switching to a new contract.

Lenders warn that mortgage repayments that reset every six months will rise as reference rates remain high, meaning many borrowers face bigger instalments when their contracts reprice. The report says mortgages indexed to short‑term rates and updated semi‑annually will be most exposed, prompting some buyers to seek renegotiation or refinancing. Homeowners with variable contracts should check their loan terms and speak with their bank about options.

Foreign direct investment in Portugal fell 34.9% to €8.51 billion in 2025, the Bank of Portugal (Banco de Portugal) reported, while investment in real estate accounted for €3.905 billion of that total. Some outlets highlighted that foreign purchases of Portuguese property reached about €3.9 billion even as overall FDI dropped, signalling sector‑specific flows that differ from the wider investment picture. Property buyers, sellers and agents should watch for policy or financing responses that could affect prices or transaction rules. Investors should also track BdP guidance and any regulatory announcements.

Correio da Manhã reports a real-estate businessman has been charged with 52 counts of qualified fraud, an allegation known in Portuguese as burla qualificada. The case is under criminal investigation and may affect buyers and partners connected to the developments involved. Those with ongoing transactions or contracts linked to the suspect should seek legal advice and monitor court filings for updates.

Data through Q3 2025 show Portugal's median house price reached €2,111/m², a 16.1% year‑on‑year rise, with transaction volumes up about 4%. Foreign buyers paid a noticeable premium (€2,889/m² versus €2,083/m² for national buyers), and the biggest regional growth was in Terras de Trás‑os‑Montes (+34.3%). Buyers, sellers and landlords should factor higher valuations and regional differences into budgets and tax planning; mortgage seekers may face tighter affordability. Those looking to buy should check local market reports and mortgage offers before committing.

Fernando Ulrich, non‑executive president of BPI, told parliament that information exchange among banks accused in the so‑called “banking cartel” was “highly beneficial for consumers,” pointing to historically low mortgage spreads between 2002 and 2013. The comments came during a hearing requested by Chega as a judicial process looks at alleged collusion in mortgage lending. Borrowers and those currently negotiating mortgages should monitor the case: legal outcomes could affect bank practices, compensation claims and reputations. Customers with outstanding mortgages or new loan plans should keep records and follow any consumer guidance from regulators.

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.

Almost a month after Storm Kristin, some residents still cannot return home; Expresso reports that in Souto da Carpalhosa one family is living in makeshift accommodation after losing their house and have delayed plans to return from Switzerland. The report underscores that recovery is uneven and that personal displacement continues even where repair work on infrastructure has begun. Homeowners and renters in affected areas should track local authority updates and insurance or social-assistance options.

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.

Savills data cited by Dinheiro Vivo and ECO shows Lisbon’s luxury residential market rose about 4.4% last year and could increase between roughly 4% and 5.9% in 2026. The consultancy ranks Lisbon among the top five global cities with high appreciation potential next year, alongside Seoul, Tokyo, Madrid and Cape Town. Buyers, investors and landlords in the capital should factor continued price growth into purchase timing and rental pricing decisions.

Observador reports the Santo Tirso municipal chamber has handed over nine equipped T0 apartments (studio flats) as part of local housing provision. The delivery is aimed at immediate housing needs and may signal more municipal allocations or social‑housing steps locally. Those looking for entry‑level or social housing in Santo Tirso should check the Câmara Municipal's application rules and waiting lists.

Euribor movements were mixed on Thursday: the three‑month rate rose, the six‑month rate fell (to about 2.137%) and the 12‑month rate stayed unchanged, ECO reports. Separately, RTP says the average mortgage interest rate for new loans fell to 3.111% in January. Homeowners with variable or recently indexed mortgages should check which Euribor term their loan follows, since short‑term swings can change monthly payments.

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.

Correio da Manhã reports the sale of assets linked to GES generated €149 million. The transaction is presented as a recovery of value from assets tied to the group's past difficulties; reporting focuses on the cash raised rather than buyer details. Business observers and creditors should watch for follow-on sales or announcements that affect creditor positions or local markets.

A UTAO report for the Assembly finds the government's planned increase to the IRS rent deduction — €900 this year and €1,000 next year — will benefit only about 11% of tenants in Portugal. The analysis suggests the change has limited reach because many tenants already claim smaller deductions or lack the eligible expenses. Renters should check whether their contracts and receipts qualify and follow parliamentary debate for any final changes.