Photo: Adobe Stock Author: Redaction APPII remains on the Municipal Housing Council The Portuguese Association of Real Estate Developers and Investors (APPII) will continue to participate in Lisbon’s Municipal Housing Council (CMH), where it has been represented since 2012. The association intends to maintain the real estate sector’s contribution to the debate on housing and the challenges facing the municipality. Over the past 14 years, APPII has followed different terms and administrations of Lisbon City Council, bringing the experience of real estate developers and investors to the advisory body. This participation provides an opportunity to share knowledge about urban development and the challenges related to housing supply. The association considers the CMH an important forum for bringing together different entities involved in housing and promoting dialogue between the various stakeholders in the sector. New term brings together eight entities APPII’s position comes after Lisbon City Council approved the new composition of the CMH’s permanent members for the 2025-2029 term. The Council now includes eight entities linked to housing: FAMALIS, FENACHE, AIL, ALP, APPII, WIRE, AICCOPN and APEMIP. WIRE and AICCOPN are the new members of the body. The Municipal Housing Council is an advisory body of the local authority dedicated to housing-related issues. It includes the Mayor, or the councillor responsible for the area, representatives of associations and other social partners, as well as representatives of political groups with seats on the Municipal Assembly. Affordable housing among priorities APPII intends to continue bringing to the Council the accumulated knowledge of professionals involved in real estate development and investment. The aim is to contribute to an analysis of the main challenges affecting housing in Lisbon. Among the association’s priorities is promoting greater housing supply and affordable solutions for city residents. Participation in the CMH also allows APPII to follow the development of municipal policies and share its members’ experience of urban development and the housing market. APPII strengthens participation in the debate With the Council’s new composition, APPII maintains the representation of the real estate development and investment sector in this municipal forum for dialogue. The association intends to continue working with the other entities represented on the CMH, contributing sector knowledge and experience to the discussion on housing in Lisbon. The aim is to bring together different perspectives and help find responses to challenges related to housing supply, urban development and access to more affordable housing.
Photo: Adobe Stock Author: Redaction Portugal’s residential rental market remained stable in August 2026, with an average price of €15.55/m². According to SUPERCASA’s house price evolution report , the figure was unchanged from July, following a 3.3% quarterly increase and 3.7% year-on-year growth. Lisbon retains highest rental prices Lisbon remained the most expensive area, at €19.82/m², up 0.9% month-on-month, 3.8% over the quarter and 2.8% year-on-year. Madeira followed at €16.34/m², while the Algarve recorded €15.30/m². At the other end of the scale, Guarda had the lowest price at €6.81/m², followed by Castelo Branco (€7.47/m²) and Viseu (€7.66/m²). Interior regions record strongest growth The largest monthly increases were recorded in Portalegre (+5.8%), Vila Real (+5.1%), Évora (+4.2%), Santarém (+3.2%) and São Miguel (+3.0%). Compared with August 2025, Bragança stood out with growth of 16.1%, followed by Beja (+7.3%) and Viana do Castelo (+5.9%). Algarve corrects after July peak The Algarve recorded the largest monthly decline, falling 3.6% from €15.87/m² in July to €15.30/m² in August. Coimbra fell by 2.2%, while Beja declined 1.7% both month-on-month and over the quarter. Viseu was the only district to record negative year-on-year growth, down 2.9%. August’s figures point to a stabilisation of the rental market following the increases recorded in June and July. At the same time, some inland markets are showing stronger growth, while areas such as the Algarve are showing signs of seasonal adjustment.
Photo: Adobe Stock Author: Redaction Bank valuations rise 14.7% in August Bank valuations of homes increased by 14.7% year-on-year in August, reaching €2,254 per square metre, according to INE. Despite reaching a new record, growth slowed from the 15.2% recorded in July. Compared with the previous month, the median value increased by €14. Setúbal Peninsula recorded the strongest monthly increase, at 1.6%, while the Algarve was the only region to register a decline, of 1.2%. See the evolution of house prices on SUPERCASA here . Flats record stronger increase By property type, flats recorded the strongest increase in bank valuations. The average value rose by 17% compared with August 2025, reaching €2,655 per square metre. For houses, year-on-year growth was 12.6%, bringing the value to €1,610 per square metre. Flats also recorded stronger monthly growth, increasing by 1.1%, compared with 0.2% for houses. Greater Lisbon maintains highest values The difference between property types is also reflected in bank valuation values. Greater Lisbon recorded the highest figures, at €3,487 per square metre for flats and €2,918 for houses. Across the regions, Greater Lisbon, the Algarve and Setúbal Peninsula recorded values above the national median. Alto Alentejo registered the lowest value, 54.1% below the countrys median. Number of valuations rises year-on-year Around 32,650 bank valuations were carried out in August, 3.1% more than in the same month of 2025. Compared with July, however, the number of valuations fell by 4.1%. INE data refers exclusively to valuations carried out as part of applications for mortgages to purchase a home. Bank valuations therefore do not directly correspond to the prices actually paid in transactions, as they only cover properties subject to bank financing.
Photo: Adobe Stock Author: Redaction Lisbon reduces the number of local accommodation units Lisbon has recorded a sharp reduction in the number of local accommodation units since the period before the pandemic. Of the around 20,000 registrations previously recorded, the capital now has approximately 11,700 active ones, following a clean-up operation that removed thousands of registrations that no longer corresponded to active businesses. The reduction took place amid greater control over local accommodation, including the creation of containment zones in certain parishes. These measures aimed to limit the expansion of the activity in areas where housing pressure is higher. Less local accommodation has not lowered prices Despite the significant decrease in local accommodation, house prices have continued to rise in Lisbon. The trend shows that the relationship between tourism-related supply and the residential market is more complex than simply transferring properties to permanent housing. According to experts analysis, restrictions may have helped to partially moderate price growth, but they were not enough to reverse the trend. Housing price growth is driven by several factors and not only by the use of properties as local accommodation. Housing supply remains limited For the Portuguese Association of Local Accommodation (ALEP), the evolution of prices reinforces the importance of analysing the structural shortage of housing supply. Check house and apartment price trends in Lisbon on SUPERCASA . The reduction in local accommodation is not expected to have caused a generalised fall in prices in the areas where restrictions were introduced. The availability of homes for permanent residence depends on several factors, from the construction of new properties to the rehabilitation and use of the existing housing stock. Therefore, restricting local accommodation does not, by itself, immediately increase the supply available for purchase or rental. New rules could change the market The debate around local accommodation has also gained a European dimension with the introduction of new rules on affordable housing. The aim is to establish common criteria for identifying areas under housing pressure and provide a framework for possible restrictions on uses of properties that do not correspond to a primary residence. In Lisbon, the evolution of local accommodation shows that containment measures can alter the scale of the activity, but do not solve housing market problems on their own. The shortage of supply remains one of the main factors to consider when analysing price trends.
Photo: Adobe Stock Author: Redaction Residential construction recovers after start of year The residential market showed signs of recovery between April and June 2026. According INE, the number of licensed units in new-build developments intended for family housing increased by 10.8% compared with the same period of the previous year. This represents a reversal from the first three months of the year, when this indicator had fallen by 2.2%. The completion of homes also improved, with year-on-year growth of 11.6%, following the decline recorded in the previous quarter. The data therefore point to greater momentum in the supply of new housing, although the overall trend in building licensing remains negative. Licensed buildings continue to decline Between April and June, around 6,200 buildings were licensed in Portugal, 7.1% fewer than in the same quarter of 2025. Nevertheless, the decline was less pronounced than that recorded in the first quarter. New construction accounted for 77.5% of licensed buildings. Within this group, 83.1% of projects were intended for family housing. Buildings intended for new construction fell by 5.6%, while rehabilitation projects decreased by 11.9%. During the period under review, approximately 3,900 buildings were completed, 4.2% fewer year-on-year. These figures reveal a different picture between family housing construction and the building market as a whole, with the former showing a more noticeable recovery. North leads new home construction The regional distribution continues to reveal significant differences. The North accounted for the largest share of total licensed buildings, representing 39.8% of the national total. The region also accounted for 41.1% of new construction and 35.1% of buildings intended for rehabilitation works. The Centre ranked second, while Oeste e Vale do Tejo came third. When specifically analysing the licensing of new homes for family housing, the Norths lead is even more evident. The region accounted for 47.8% of licensed housing units in the country. Lisbon and Algarve record largest declines Despite the national growth in housing units intended for family housing, regional performance was uneven. Madeira and the North were the only regions where the number of licensed buildings increased compared with the previous year. At the other end of the scale, Greater Lisbon recorded the sharpest decline, with a reduction of 35.1%. It was followed by the Algarve, with a 24.9% drop, and the Setúbal Peninsula, where the decline reached 20.3%. The second-quarter data therefore point to a recovery in the licensing of new homes, while also highlighting significant regional differences. The development of residential construction will remain crucial in determining how the housing supply can respond to demand.
Photo: Adobe Stock Author: Redaction More resources to care for the city Lisbon City Council is preparing a new investment cycle aimed at improving the citys operations and the quality of the spaces used daily by Lisbon residents. In total, €21.5 million is planned for different areas of intervention. A significant part of this investment will be used to maintain pavements and street furniture. The works represent around €6.5 million and aim to ensure better conditions for the use and upkeep of public areas across the capital. The council will also strengthen street cleaning through cooperation agreements with Lisbons 24 parishes. The measure provides for a transfer of close to €5 million for operations such as street sweeping and emptying litter bins. Municipal services enter a new phase Digital transformation is another priority defined by Lisbon City Council. Around €15 million will be allocated over the next three years to modernise systems, reduce bureaucratic processes and make municipal services more efficient. The investment will make it possible to replace manual procedures and scattered information with integrated platforms. In this way, the council aims to bring together data on equipment, contracts, licences, applications and operations, making resource planning and management easier. The use of more up-to-date information should also help anticipate needs, monitor costs and improve the maintenance of municipal equipment. With more interconnected systems, it will be possible to reduce repetitive tasks and speed up responses to citizens requests. New portal brings online services together Technological modernisation should also be reflected in the relationship between residents and the council. The future CML Services Portal aims to bring different municipal services together in a single digital space. Access will be possible via the internet, mobile devices or with in-person support, allowing for a simpler and more integrated experience. This change aims to bring services closer to citizens and make procedures easier to complete. The new technological infrastructure will be supported by the Lisbon Data Hub, strengthening the councils ability to manage and cross-reference information across different areas of municipal administration. Digital security becomes a priority Strengthening the protection of municipal systems is part of this modernisation process. By 2029, around €2 million is planned specifically to increase information security and protect personal data. This investment should help make the municipal infrastructure more resilient to cyberattacks and other digital threats. The focus is also on ensuring greater service continuity and the ability to respond to potential failures. With these measures, Lisbon combines physical intervention in public spaces with the modernisation of services. The aim is to improve municipal management and create faster, more accessible responses suited to the citys needs.
Source: Adobe Stock Author: Redaction Buying a home is out of reach for many Access to housing remains one of the main challenges for Europeans on average incomes. In Portugal, the difficulty is particularly evident in metropolitan areas, where property prices have risen faster than incomes. A study by the Vienna University of Technology, published in the journal Maps, analysed more than 18 million property sale listings and 3.5 million rental listings across 31 European countries. The analysis concluded that only 44% of the population lives in cities where an average income allows them to buy an apartment or studio of around 50 square metres. In Portugal, this situation places the country among the markets considered systematically unaffordable for buyers on average salaries. Lisbon faces high housing pressure Large metropolitan areas account for a significant share of housing pressure. Lisbon is among the European capitals where a considerable proportion of the population struggles to find a moderately sized home without committing a large share of their income. The situation is made worse by the gap between property prices and households’ financial capacity. Even when long-term mortgage credit is available, the budget households have at their disposal continues to limit the size of the home they can afford. This reality particularly affects first-time buyers and those who need to move to another city for professional or personal reasons. Renting also faces difficulties The pressure is not limited to buying a home. The rental market also shows high levels of unaffordability in several European regions, including Portugal. In coastal and tourist areas, additional demand for temporary accommodation and second homes contributes to reducing the supply available to residents. This phenomenon is particularly relevant in areas where tourism plays a significant role in the local economy. When the supply of permanent housing decreases, rents tend to face additional upward pressure, making it more difficult for households to access suitable housing. More supply is essential to improve access The housing affordability crisis has a major impact on metropolitan areas, but its effects are also felt in surrounding regions. Rising prices in urban centres can lead to increased demand in peripheral areas, putting pressure on these markets as well. Improving access to housing will require increasing supply and adapting policies to the characteristics of each region. Measures targeting renting, construction, renovation and the use of the existing housing stock can help rebalance the market. In Portugal, the challenge is to create conditions for housing to become more aligned with households’ financial capacity, both for those looking to buy and those looking to rent.
Source: Adobe Stock Author: Redaction New building creates 50 homes in Lisbon The Benfica Parish Council will inaugurate, on 25 August, a new residential building in Calhariz de Benfica, with 50 apartments intended for affordable rental. The project represents an investment of nearly €6 million, fully funded by the Recovery and Resilience Plan (PRR), through the 1st Right Programme. The use of prefabricated concrete modules helped speed up construction and meet the deadlines set. The building was constructed on vacant land provided by Lisbon City Council and benefits from a location close to the Calhariz de Benfica University Residence and the railway station. Supply includes T1, T2 and T3 apartments The new homes are distributed across different types, aiming to meet the needs of various households. Of the total, 42 are T1 apartments, four are T2 and another four are T3. Affordable rental housing has been gaining importance in the Benfica parish, which has already allocated around €80 million to this type of housing. Under the 1st Right Programme, 297 homes have been submitted. The average rent for homes already delivered by the Parish Council is €40 per month, although the amounts applicable to the new apartments will depend on the conditions defined for each application. Benfica prepares more new homes The increase in supply does not end with this project. Recently, the Institute for Housing and Urban Rehabilitation (IHRU) approved applications from the Benfica Parish Council to acquire completed homes. This initiative is expected to make a further 37 apartments available through a new tender, increasing the supply of housing for affordable rental in the parish. The strategy aims to make use of available properties and create new housing solutions in a context of high pressure on housing prices in Lisbon.
Source: Adobe Stock Author: Redaction Sale of municipal land moves forward in Lisbon Lisbon City Council has approved the sale of 10 municipal plots of land located across several parishes of the city, with a minimum value of around €59.2 million. The operation aims to generate revenue to support investments planned under the citys strategy through 2030, contributing to the modernisation of infrastructure and urban facilities. The plots are located in areas such as Marvila, Beato, Penha de França, Lumiar, Belém, Campolide and São Vicente. Revenue will be invested in the city The proceeds from the sale of the municipal land will be allocated to various projects aimed at improving the city. Planned investments include transport, street resurfacing, public lighting and enhanced safety measures. The municipality also intends to strengthen its investment capacity and accelerate the delivery of priority projects over the coming years. Land may host new developments The municipal plots covered by the operation may be used for different types of projects, including housing, services, offices and other facilities, depending on the characteristics and planning framework of each location. The aim is to regenerate currently unused spaces, encourage new investment and contribute to the urban development of different parts of the city. Process moves to the next stage The proposal to sell the municipal land will now be submitted to the Municipal Assembly for consideration, a necessary step before the process can proceed. If approved, the sale will provide additional funding for the citys investment plan through 2030 while paving the way for future development projects on the sites involved.
Source: Adobe Stock Author: Redaction Lisbon stands out for its quality of life Lisbon has been recognised as one of the cities with the best quality of life in the world, ranking third in an international survey. The Portuguese capital is placed only behind Tokyo and Copenhagen, ahead of cities such as Vienna, Sydney, Zurich, Madrid, Paris, Munich and Oslo. Among the factors contributing to this ranking are its mild climate, high number of sunshine hours, gastronomy, architecture, safety and cultural offer. The city also benefits from continued investment in public transport, including the expansion of the tram network, as well as the importance of Lisbon Airport for international connections. Local commerce and mobility boost attractiveness Another strength highlighted is the vitality of traditional local commerce, with markets, kiosks and historic shops that continue to shape the citys identity. The growing use of bicycles as a means of transport also helps improve urban mobility and residents quality of life. The combination of heritage, services, accessibility and economic dynamism makes Lisbon an increasingly sought-after destination both to live in and to visit. Housing remains a challenge Despite its high ranking, the city continues to face challenges related to growing demand. Pressure on public services and, above all, on the housing market are considered some of the main obstacles to urban balance. The rising cost of living and housing raises questions about the citys ability to balance the needs of residents with increasing international demand. Even so, Lisbon remains among the worlds highest-ranked cities for quality of life, reinforcing its global recognition.
Source: Adobe Stock Author: Redaction Lisbon City Council strengthens housing support Lisbon City Council has approved an investment of €1.75 million to strengthen support measures for people experiencing homelessness. The funding is part of the Municipal Plan for People Experiencing Homelessness 2024–2030 and aims to promote housing solutions, autonomy, employability and social inclusion. One of the main measures is the continuation of Housing First projects, providing a total of 100 homes for people with long-term experiences of homelessness, many of whom face mental health issues or addictions. This model is based on the principle that access to housing is the first step towards recovery and social integration, supported by specialised technical teams. Investment focuses on autonomy and employment In addition to housing responses, Lisbon City Council will support projects aimed at professional integration and the development of personal autonomy. Among them is a socio-professional integration programme that assists people experiencing homelessness in finding employment, training opportunities and internships, helping them build more stable life paths. The municipality has also approved funding for prevention and autonomy initiatives aimed at people who have recently become homeless, as well as programmes that provide housing stability for those attending training or already engaged in the labour market. Plan aims to strengthen social inclusion With this investment, Lisbon City Council intends to consolidate its municipal strategy to support people experiencing homelessness by promoting an integrated approach that combines housing, social support and professional inclusion. The strengthened measures aim to encourage greater autonomy and facilitate beneficiaries social reintegration, prioritising solutions that provide a more lasting and effective response to situations of housing vulnerability.
Source: Adobe Stock Author: Redaction Lisbon among Europes least affordable cities Buying a home in Lisbon has become an increasingly difficult challenge for those who rely on local incomes. According to recent studies on the European housing market, the Portuguese capital has one of the highest price-to-income ratios in Europe, with around 18.7 years of an average salary needed to buy a home. The indicator compares the price of a home with the annual income of an average household and is widely used to measure housing affordability. The higher the ratio, the more difficult it is to access the property market. House prices have risen much faster than wages Over the past decade, house prices in Portugal have increased sharply , far outpacing wage growth. While housing prices rose by around 240%, average incomes increased by approximately 59%, making it significantly harder to buy a home. In Lisbon, an apartment in the city centre can cost more than €6,700 per square metre. As a result, a modest 50-square-metre apartment can cost around €338,000, representing almost 19 years of an average households net income. Housing shortage continues to drive the market The lack of available housing continues to be identified as one of the main reasons behind rising house prices. Portugal is currently building fewer homes than are needed to meet demand, maintaining an imbalance between supply and demand. In addition, the limited stock of public and social housing, combined with both domestic and international demand, continues to put upward pressure on prices, particularly in major urban centres such as Lisbon. Experts do not expect prices to fall Despite declining affordability, several studies suggest there are no clear signs of a sharp correction in the Portuguese housing market. Demand remains strong while supply is still limited, helping to sustain rising house prices. Even so, affordability indicators highlight the challenges facing anyone looking to buy a home in Lisbon. The growing gap between house prices and household incomes places the Portuguese capital among the least affordable housing markets in Europe, making access to housing increasingly difficult for residents.
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