Property: Cost of living news in Portugal

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 Bank of Portugal (Banco de Portugal or BdP) is advising customers to contact their banks if they face difficulties resuming home loan payments. The moratorium, which allowed for a temporary suspension of payments for families affected by severe weather, officially ends on April 28.

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.

Homeowners with variable-rate mortgages will see monthly payments increase by up to 18 euros this month as Euribor rates react to geopolitical tensions. Data from the National Statistics Institute (Instituto Nacional de Estatística or INE) shows inflation rose to 2.7% in March, largely driven by higher fuel costs. These market shifts are affecting both existing contracts and new loans, including those with mixed-rate options.

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 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.

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.

More than 100 collectives have organized a series of protests under the slogan “It's not enough” (Já não dá) to demand better access to affordable housing. The demonstrations, scheduled for the coming weekend in several cities, show the growing gap between wages and rental prices. Organizers argue that recent government measures have failed to protect tenants from irregular rent increases and precarious living conditions. Tenants and those seeking housing should be aware of the protests in major urban centers.

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.

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.

Monthly mortgage payments will increase in March for loans indexed to the six‑month Euribor and fall for contracts tied to the three‑ and twelve‑month rates, Deco Proteste simulations show. For a €150,000, 30‑year loan with a 1% spread, a contract linked to the 12‑month Euribor would see a payment drop of about €15.38 in March compared with the prior review. Borrowers with variable‑rate mortgages should check their review schedules, ask lenders how the indexation will affect instalments, and consider repayment or refinancing options if needed. Those with outstanding loans should contact their bank or broker ahead of March adjustments.

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.

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.