Fonte: Adobe Stock Autor: Redação 6% VAT on renovation under government review The Government is working on clarifying the regime of 6% VAT on renovation, in a context where several construction companies are facing tax inspections and retroactive adjustments by the Tax Authority. Projects developed in Urban Rehabilitation Areas that benefited from 6% VAT on renovation are now being reassessed regarding their tax classification. This situation has created financial pressure on developers and companies that proceeded with investments based on previous interpretations of the law. The Government aims to ensure greater legal stability and predictability in the framework of 6% VAT on renovation, avoiding new interpretative divergences that affect the housing and urban rehabilitation sector. Clearer tax rules for housing The Government, in coordination with the Assembly of the Republic, intends to strengthen the clarity of tax rules applied to the housing sector, with a particular focus on 6% VAT on renovation and on the criteria for accessing reduced regimes. According to the Government, the objective is to eliminate ambiguities that have generated divergent interpretations between taxpayers and the tax administration, especially in projects linked to urban rehabilitation operations approved by local authorities. The Minister of Infrastructure and Housing, Miguel Pinto Luz, argues that the new housing tax framework should be more rigorous and unequivocal, reducing room for doubt in the application of tax rates and ensuring greater security for investment in the real estate sector. Modular construction as a strategic bet In parallel with the review of 6% VAT on renovation, the Government is preparing a new approach to accelerate housing supply through modular and industrialised construction. This strategy aims to reduce construction timelines, lower building costs and increase the market’s capacity to respond to housing demand, in a context of strong pressure on housing supply in Portugal. Modular construction thus emerges as a complementary solution to urban rehabilitation, enabling faster housing delivery and diversifying production models. The Government considers this strategy potentially decisive in scaling up the sector and responding more quickly to housing needs, while also stabilising the construction market.
Source: Adobe Stock Author: Redaction Rental market grows despite uncertainty The supply of rental housing in Portugal recorded a significant increase of 23% compared to the same period last year, even in a context of uncertainty in the housing sector. The latest data indicate that the rental market continues to expand, despite legislative changes and regulatory instability that have marked the sector. In total, around 31,710 rental housing listings were recorded in the first months of the year, confirming the growth trend of the rental market in Portugal. This increase reflects greater dynamism in the availability of properties for rent, even with doubts about the future legal framework. Lisbon and Porto lead supply growth Lisbon and Porto continue to be the main hubs of the rental market, concentrating around two thirds of the total rental housing supply in the country. Both cities recorded growth of close to 25%, reinforcing the weight of metropolitan areas in renting in Portugal. However, the increase in rental housing supply is not limited to the main urban centres. Districts such as Faro, Coimbra, Viana do Castelo and Viseu showed growth above 30%, demonstrating a more balanced expansion of the rental market across several regions of the country. This evolution indicates that the increase in rental housing supply is becoming a national phenomenon, driven both by demand and by the greater placement of properties on the market. Rental dynamics and lack of official data The growth in rental housing supply follows a trend already seen in the previous year, when the number of listings increased by more than 30% compared to the same period. This evolution reinforces the idea of a continuously expanding rental market in Portugal. Major real estate networks also confirm this trend, with records of an increase in active rental listings in the most recent period analysed, showing greater turnover and availability in the sector. Despite this positive evolution, the analysis of the rental market has been hampered by the lack of up-to-date official data. The National Statistics Institute has stopped publishing recent statistics on rents and new contracts, following methodological changes, which limits the overall reading of the rental market behaviour in Portugal.
Source: Author Author: Jorge Garcia, Real Estate Specialist The housing access crisis, the sluggish state and real estate Darwinism There we were once again at another edition of SIL – Portugal Real Estate Fair, where the “star” theme was “built to rent”. In an environment identified by the property developers and estate agents present as one of “more considered decision-making by those buying and investing”. “Built to rent” brings new challenges to property development, being a segment that attracts long-term non-speculative real estate investment, institutional operators such as REITs, sovereign wealth funds, insurance companies and pension funds. A model that changes the objective of the property business: from immediate income through selling properties at the highest possible price, to optimising income over decades. With purchase prices continuing at unaffordable levels for the majority of the population, a “Seller’s Market” with a structural supply deficit and robust demand, renting emerges as an option for affordable housing needs. The slowing property market Until now, in the sales market, well-located properties with market values adjusted to their target audience have seen rapid absorption. In a slightly slowing market, absorption time will tend to increase. Still far from a “Buyer’s Market” situation, for similar properties misaligned with their target and overvalued, buyers will pressure negotiations and owners will either reduce prices or fail to sell. News coming from Italy already reflects a trend towards falling prices. In Portugal, the property market is beginning to show signs of change, particularly in the second-hand segment, given the speculative mentality of most small property owners. Inflation, interest rates and housing credit The suspension of global logistics and energy chains, if it becomes a prolonged disruption, will lead central banks to tighten monetary policy. Alongside greater pressure on construction and refurbishment costs, there may be a significant rise in Euribor rates, worsening the costs of access to housing credit. So far, the European Central Bank has demonstrated assertive prudence regarding the lasting nature of inflationary tensions and in the face of nervousness in the financial markets. Inflation and rising interest rates in a context of low economic growth do not bode well. But while the unemployment rate remains at low levels, demand should remain dynamic, despite the pressure on buyers’ “effort rates”. Interest should persist, but decision times are expected to increase and reveal greater fluctuation between the “asking price” and the actual sale value. Portugal and international buyers Portugal as a destination still has enormous growth potential in attracting foreign buyers in the premium, luxury and ultra-luxury segments, if there is capacity to produce products aimed at these segments on a global scale. There is still much to be done in the field of construction and refurbishment of properties for buyers in these demanding market niches. There are international investors looking for alternatives to Middle Eastern markets. Real estate Darwinism Still widely discussed here are the concentrations of operations that took place in the North American market: Anywhere (C21, ERA, Sotheby’s, Coldwell Banker, Corcoran) and Compass, RE/MAX and Real, EXP and NextHome, Zillow and realtor.com, Rocket and Redfin. In a short space of time, two of the most digital real estate companies in the USA bought the sector’s “giants”, a fully virtual brokerage bought a network of estate agencies, the property portals Zillow and realtor.com joined forces, and the largest mortgage platform Rocket bought the property portal Redfin. It is the principle of real estate Darwinism, the survival of the fittest, where the fittest are those who adapt best. In Portugal, for now, nothing changes. But the “evolutionary environment” is changing and, when it changes, many operators cease to be adapted and do not survive. The sluggish state As for the public bodies on which the property sector depends, “everything remains the same as the sluggish snail”.
Source: Adobe Stock Author: Redaction Porto City Council changes strategy for mosques Porto City Council has decided to move forward with the public auction of two municipal properties that had been acquired by the previous administration for future projects linked to mosques. The decision was announced by the mayor, Pedro Duarte, who stated that the construction of mosques is not among the municipality’s current priorities. The two vacant properties had been intended for associations from Porto’s Muslim community through the granting of surface rights for several decades at symbolic rents. Properties intended for mosques to be sold One of the properties is located on Rua do Pinheiro Grande, in Campanhã, and had been planned for the Islamic Cultural Centre of Porto. The second is located on Rua da Porta do Sol, in the Historic Centre, and had been intended for the Bangladesh Community Association of Porto. According to the municipality, placing these properties up for public auction does not prevent the interested associations from bidding to purchase the land. The aim is to ensure equal access for any entity interested in the spaces. Porto City Council is currently assessing the properties to determine the base value for the sale. Executive considers other priorities for the city Pedro Duarte argues that municipal land should be directed towards areas considered more urgent, such as affordable housing and public communal spaces. The mayor states that the construction of mosques is not a priority for the current municipal executive. This position marks a change from the strategy followed by the previous leadership of Rui Moreira, which had prepared proposals to support the two mosque projects through long-term contracts and reduced rents. Mosque projects sparked political debate The proposals related to the mosques were expected to be voted on in early June 2025, but were ultimately removed from the agenda. At the time, Rui Moreira justified the decision with the proximity of the end of the mandate and the lack of political consensus on the issue. The associations involved argued that the mosque projects would strengthen social support and the integration of the immigrant community. Among the highlighted initiatives were food support actions, assistance for vulnerable families, Portuguese language teaching and social integration programmes. The planned agreements represented municipal support worth hundreds of thousands of euros distributed over 40 years, due to the difference between the market value of the surface rights and the symbolic rents planned for the future mosques.
Source: Adobe Stock Author: Redaction Real estate investment grows at the start of 2026 Real estate investment in Portugal reached 930 million euros in the first quarter of 2026, recording a 37% increase compared to the same period last year. The data is included in the “Market Dynamics” report by JLL, which highlights a strong start to the year in the commercial real estate market. According to the consultancy, national real estate investment was driven by retail and hospitality, sectors that accounted for more than 70% of the capital deployed. Portuguese capital represented 42% of the total invested, equivalent to 391 million euros, while international investors applied around 539 million euros. Portugal continues to stand out among the most sought-after European destinations for real estate investment, even in an international context marked by geopolitical uncertainty and pressure on interest rates. Retail and hospitality lead the market Retail attracted 340 million euros in real estate investment, supported by the sale of a portfolio of shopping centres and retail parks. Hospitality accounted for around 330 million euros, benefiting from tourism demand and the continued appreciation of premium hotel assets. Data centres also gained relevance in real estate investment in Portugal, representing 14% of the total volume transacted. Offices also recorded growth , with Lisbon and Porto recovering momentum in the occupier market. In Lisbon, office absorption increased by 80% in the first quarter, driven by demand for modern and efficient buildings. In Porto, occupancy also grew, although it remains below recent average levels. Residential market continues to face price pressure In the residential segment, real estate investment continues to be influenced by strong demand and limited supply. House prices rose by 22.4% year-on-year, with Lisbon and Porto recording significant increases. Despite growth in the number of licensed and completed housing units, supply constraints are expected to continue putting pressure on prices in the short term. According to the report, the Portuguese real estate market is expected to maintain a solid pace throughout 2026, supported by international demand, stronger domestic capital and growing interest in alternative segments such as logistics, data centres and Build-to-Rent.
Source: Adobe Stock Author: Redaction The way we present a property can determine whether it sells quickly or stays on the market for months. Descriptions play a crucial role in this process, but creating attractive and accurate texts for different audiences is not always an easy task. Fortunately, Artificial Intelligence (AI) and advanced solutions like eGO Real Estate have simplified this mission, making it possible to sell globally with just a few clicks. AI and the Revolution in Property Descriptions Traditionally, writing engaging descriptions required market experience and persuasive communication skills. Today, AI allows much of this work to be automated, analysing property features, target audience preferences, and market trends to generate texts that truly highlight the strengths of each property. With intelligent algorithms, it is possible to: Create personalised descriptions that capture the attention of different client profiles; Highlight the most valued attributes in the market, such as location, finishes, or leisure areas; Avoid grammatical errors and inconsistencies, ensuring professional texts; Optimise descriptions for search engines (SEO), increasing the visibility of online listings. Additionally, Artificial Intelligence also helps simplify administrative tasks, such as contract management and sending reminders, allowing the property consultant to dedicate more time to humanised and strategic client service. Automatic Translation: How to Sell to the World One of the most powerful features of eGO Real Estate is the automatic translation of property descriptions. With this tool, it is possible to publish listings in multiple languages, such as English, French, and Spanish, without spending time on manual translations while maintaining information consistency. This means that a property in Lisbon or Porto can be immediately presented to international clients, significantly expanding the reach of your portfolio. With automatic translation integrated into the eGO CRM , you no longer need to worry about translation errors or inconsistencies between languages. Simply create the description in Portuguese, and the AI system takes care of adapting it to the selected languages. How to Make the Most of Artificial Intelligence To create even more effective descriptions, follow these tips: 1. Be specific: The more information you provide about the property, the better the description generated by AI will be. 2. Contextualise the target audience: Inform the AI about the buyer profile, such as young professionals, families, or international investors. 3. Choose the communication style: You can opt for a sophisticated, friendly, relaxed, or even humorous tone, depending on the property and audience. 4. Use clear prompts: A well-structured command increases the quality of the result. For example: “Create an engaging description for a T4 in Leiria with a pool, garden, and premium finishes. Highlight comfort, quiet location, and exclusive lifestyle.” 5. Explore different formats: AI can write texts in paragraphs, lists, bullet points, or even comparisons, adapting to your marketing needs. Direct Benefits for Agents and Consultants By integrating AI and automatic translation into the sales process, eGO Real Estate provides tangible advantages: Speed: Rapid publication of properties in multiple languages; Consistency: Ensures all descriptions follow the same quality standard; Global reach: Attracts international clients; Time savings: Eliminates manual translation and revision work; Sales strategy: Consultants can focus on negotiations and personalised service. Selling properties today is not just about showing beautiful photos; it is about communicating strategically, clearly, and engagingly. Artificial Intelligence, combined with the automatic translation of eGO Real Estate , transforms how property agents reach international clients, simplifying processes and increasing campaign effectiveness.
Source: Adobe Stock Author: Redaction South Bank drives house price growth Municipalities on the South Bank of the Tagus are leading the rise in house prices across the Lisbon Metropolitan Area. Municipalities such as Moita, Barreiro and Seixal recorded some of the strongest housing price increases in the first quarter of 2026. Moita stood out with a rise of more than 35% in house prices compared to the same period last year. Barreiro and Seixal also recorded strong increases, close to 31%, reflecting growing demand for housing outside central Lisbon. Other South Bank municipalities, such as Almada, Alcochete and Montijo, also posted significant increases. More affordable prices continue to attract buyers looking for lower-cost alternatives within the Lisbon Metropolitan Area. Lisbon, Cascais and Oeiras remain more expensive Despite the sharp rise on the South Bank, Lisbon, Cascais and Oeiras continue to have the highest prices per square metre in Portugal. Even so, price growth in these markets has been more moderate. The high prices in these municipalities help explain the slowdown in growth, as they start from values much higher than those recorded on the South Bank of the Tagus. Even so, demand pressure is narrowing the price gap between several municipalities in the metropolitan region. Almada has already exceeded 3,500 euros per square metre, while Barreiro and Seixal surpassed 3,000 euros per square metre for the first time. Demand continues to pressure the housing market The growth in house prices on the South Bank is linked to strong demand for more affordable housing. Many families continue to seek alternatives outside Lisbon due to the capital’s high costs. Improved transport links, proximity to Lisbon and more competitive prices continue to strengthen the attractiveness of South Bank municipalities. With housing supply still limited and demand remaining high, house prices are expected to stay under pressure throughout 2026 in several municipalities across the Lisbon Metropolitan Area.
Source: Adobe Stock Author: Redaction Reconstruction of the Central Region moves forward on the ground The “Rebuild the Central Region Together!” initiative has already enabled the full funding of a total of 28 projects linked to the recovery of areas affected by last winter’s depressions and storms. The collaborative funding campaign has exceeded 3.2 million euros raised and remains available for new support and applications. The “Reconstruction of the Central Region” was created to support communities, institutions and infrastructure affected by severe weather, involving citizens, companies and organisations in a joint effort to recover the territory. Projects support communities and infrastructure The funded projects cover different areas considered essential for local recovery. Among the support already completed are interventions in fire stations, schools, libraries, leisure parks and sports and cultural associations. The “Reconstruction of the Central Region” has already supported initiatives in municipalities such as Leiria, Pombal, Ourém, Coimbra, Penela and Marinha Grande. Some of the projects include the recovery of damaged equipment, strengthening civil protection and creating more resilient community spaces. Initiatives linked to education, environmental sustainability and social development were also funded, demonstrating the diversity of needs existing in the affected territories. Second phase keeps new projects open The campaign has now entered its second phase, keeping the platform active to receive new projects and donations. The Mission Structure “Reconstruction of the Country’s Central Region” highlights the strong involvement of the population and local entities in supporting the affected communities. Among the projects still seeking funding are the recovery of fire stations, rehabilitation of cultural spaces, reconstruction of sports infrastructure and the creation of social and health responses. The “Reconstruction of the Central Region” intends to continue mobilising collective support to accelerate the recovery of the regions most affected by the severe weather. Collaborative funding continues to grow The collaborative funding model has been one of the main driving forces behind this initiative. The participation of companies, citizens and associations has made it possible to guarantee rapid responses in several locations affected by the storms. In addition to the physical recovery of buildings and equipment, the “Reconstruction of the Central Region” aims to strengthen community resilience and create conditions for more sustainable development in the future. With dozens of projects still active, expectations are that the total funding amount will continue to grow in the coming months, allowing support for new priority interventions in different municipalities of the Central Region.
Source: Adobe Stock Author: Redaction Municipal housing refurbishment in Setúbal The Setúbal City Council has begun the refurbishment of 179 municipal housing units in Quinta de Santo António, in a project valued at €8.7 million. The intervention has a 360-day execution period and is part of the strategy to strengthen municipal housing in the municipality. This investment in Quinta de Santo António includes improvements to 72 housing units and two communal areas in Rua da Fonte Fresca, as well as 77 housing units and four communal areas in Rua dos Sobreiros. The municipal housing refurbishment aims to strengthen the quality of the existing housing stock. Municipal housing refurbishment and comfort The municipal housing refurbishment in Setúbal is part of the Local Housing Strategy and the 1º Direito programme. The intervention is funded through the Recovery and Resilience Plan, in coordination with the Institute for Housing and Urban Rehabilitation. The main objective of the municipal housing refurbishment project is to improve living conditions, with a focus on kitchens, bathrooms and communal areas. The intervention also enhances thermal comfort and the energy efficiency of the buildings. The municipal housing refurbishment also includes the renewal of water, sanitation, gas and telecommunications networks, contributing to the modernisation of the Quinta de Santo António housing stock. Municipal housing refurbishment and common areas The municipal housing refurbishment also includes the upgrading of common and outdoor areas. The intervention includes thermal insulation, replacement of window frames and roofs, as well as improvements to stormwater drainage systems. This investment in municipal housing refurbishment also includes the creation of accessible routes for people with reduced mobility, promoting greater inclusion and accessibility in the neighbourhood. With this project, the municipal housing refurbishment in Quinta de Santo António reinforces the municipality’s commitment to improving housing conditions and residents’ quality of life, through a large-scale, funded and structured project.
Source: Adobe Stock Author: Redaction Housing crisis requires urgent response The housing crisis continues to worsen across Europe and is now seen as one of the main social challenges. MEPs warn that the housing crisis requires an immediate and coordinated response, stressing that this is the time to move forward with concrete measures. The lack of affordable homes and rising prices have made access to housing more difficult, especially for young people, students and middle-income families. More public and European investment To address the housing crisis, European officials are calling for a significant increase in public investment, both at national and European level. The housing crisis will not be solved by market measures alone, making it necessary to support local and regional authorities seeking to increase the supply of affordable and social housing. At the same time, it is stressed that these investments must be well designed to avoid speculation and ensure a more balanced housing market. New European budget focused on housing The housing crisis is expected to be at the centre of the next European Union budget, with proposals including specific funds for housing projects. The creation of dedicated financial instruments is seen as essential to respond to the housing crisis in different regions and cities. The aim is to boost construction, renovation and conversion of buildings, ensuring more homes at affordable prices. Young people among the most affected Among those most affected by the housing crisis are young people, particularly students and early-career workers. The difficulty in finding affordable accommodation limits study and job opportunities, worsening inequalities. The housing crisis therefore raises concerns about the future of the next generations, reinforcing the need for effective and sustainable policies that ensure access to decent housing for all.
Source: Adobe Stock Author: Redaction Housing prices at record highs Portugal’s housing market continues to record high values, with housing prices at record highs. Even so, real estate experts acknowledge that the housing market is entering a more mature phase. Although a reversal in housing prices is not expected in the short term, a slowdown in the rise of housing prices is anticipated in 2026, even if growth continues. The evolution of housing reflects a natural adjustment in a market with limited elasticity. Housing supply shortage puts pressure on housing Housing in Portugal continues to be under pressure due to a shortage of supply. Around 25,000 housing units are built per year, while housing demand would require close to 70,000. This imbalance in housing keeps prices high and contributes to increasing difficulty in accessing housing, especially for the middle class. The housing market also shows a significant structural deficit, with a direct impact on housing trends and on the ability of supply to respond. Housing market expected to cool The housing market may enter a cooling cycle, as many families begin to postpone housing purchase decisions. Rising housing prices have become unaffordable for many households, leading to greater caution in housing decisions. Despite this, the housing sector continues to record record highs across several indicators, including median price and housing bank valuations. Experts argue that housing will only stabilise with more supply, increased construction and structural policies that rebalance the housing market.
Source: Adobe Stock Author: Redaction Urban regeneration activity declines The urban regeneration sector started 2026 showing signs of slowdown. According to the Association of Civil Construction and Public Works Contractors and Services (AICCOPN), the urban regeneration activity index recorded a year-on-year decrease of 0.8%. This downturn in urban regeneration reflects lower market dynamism, in a context where urban regeneration had previously shown greater stability. The trend indicates a loss of momentum in urban regeneration, particularly in smaller-scale projects. Orders, output and licensing fall The backlog of orders in urban regeneration also recorded a 1.4% decrease, signalling lower future workload in the sector. Contracted output in urban regeneration, which measures secured activity for the coming months, also declined. This trend suggests reduced predictability in urban regeneration, directly affecting operator confidence and the execution of new urban regeneration projects. Strong decline in building permits Building permits for urban regeneration recorded a significant year-on-year decrease of 20.1% up to February 2026. This downturn in urban regeneration affected both the residential segment, with a 15.5% decline, and the non-residential segment, which fell by 26.9%. These figures show a broad slowdown in urban regeneration, reflecting fewer approved projects and reduced dynamism in the launch of new urban regeneration initiatives.
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