Thousands protest in Portugal over surging house prices and rents

Thousands of protesters took to the streets in Portugal over the weekend, expressing frustration with skyrocketing house prices and unaffordable rents.

Demonstrations spread across multiple major cities, including Lisbon, Porto and Madeira, with people demanding urgent action from the government. For expatriates living in Portugal, this news hits close to home, as many are facing the same housing market challenges as locals.

The protestors marched with banners that read, “Our neighbourhoods are not your business” and “I have to choose between paying for a house or eating”.

Portugal’s housing crisis

Over recent years, Portugal has seen an unprecedented rise in housing costs. According to data by Eurostat, rents increased by an eye-watering 112 per cent between 2015 and 2021. This was driven by a combination of housing shortages, an influx of foreign investors, and tourism-related accommodations like short-term rentals. Many fear that housing has become a privilege reserved only for the wealthy.

While Portugal’s Digital Nomad Visa scheme has attracted more international residents, it has also put additional pressure on the housing market.

Some property developers and landlords believe that tightening regulations on the housing market could deter investment and stall economic growth, particularly in a post-pandemic world where Portugal’s tourism industry plays a significant role.

What the Portuguese government are doing about the housing crisis

Portuguese authorities have acknowledged the problem, but some argue that government interventions have been insufficient. Prime Minister Luís Montenegro announced a €2 billion package to build 33,000 homes by 2030, but many protesters are doubtful this will happen.

While protests might help bring attention to the issue, a more balanced, sustainable solution is crucial for long-term stability.