The lack of housing supply in Greater Lisbon and Greater Porto strengthens Build to Rent as a solution to increase rental homes.
Source: Adobe Stock
Author: Redaction
Housing crisis requires new models
Pressure on the property market continues to worsen access to housing in Portugal, especially in Greater Lisbon and Greater Porto. The shortage of available homes, combined with rising sale and rental prices, is making it harder to meet the needs of the middle class.
In this context, the Build to Rent model emerges as an alternative to increase housing supply. This concept focuses on constructing buildings exclusively for rental purposes, allowing larger-scale projects and responding more quickly to growing demand.
Build to Rent can increase supply
Build to Rent is already widely used in several European markets and is now becoming more relevant in Portugal. The model makes it possible to develop housing designed from the outset for renting, creating scale and greater stability in the housing market. Despite its potential, challenges related to construction costs, urban planning rules and project profitability remain. Even so, sector specialists believe Build to Rent could play an important role in strengthening housing supply, especially in metropolitan areas.
At the same time, public measures to encourage construction may have limited impact if they are not accompanied by conditions that facilitate larger-scale projects and reduce costs for property developers.
Lisbon and Porto face greater pressure
The Greater Lisbon and Greater Porto markets continue to stand out due to strong housing demand, supported by their ability to attract and retain working-age populations. This dynamic keeps prices high and encourages new property developments, although with increasingly compact homes.
In peripheral areas, demand is more limited and households’ financial capacity constrains the development of new projects. The lack of new developments continues to increase difficulties in accessing housing, especially in the mid-market segment.
In addition, the ageing population in some suburban areas may create opportunities for urban rehabilitation and strengthening housing supply without relying exclusively on new construction.
Property market seeks sustainable solutions
Market developments show that Portugal’s housing problem requires structural solutions and not just temporary tax measures. Build to Rent is identified as one of the models capable of creating housing supply on a larger scale and responding to growing urban demand. Investment in purpose-built rental projects could help stabilise the property market, increase housing availability and improve access to housing in Portugal’s main cities.
With housing demand remaining high, the development of new property promotion models will be decisive in balancing supply and ensuring greater accessibility in the housing market.
Nederlands
Português
English
Français
Español
Deutsch
Русский
中文(简体)
