Portugal faces a growing housing crisis, with a shortfall of around 300,000 homes accumulated over the last decade, warn property developers.
To tackle this deficit, the country will need to triple its annual housing output, from roughly 20,000 homes today to at least 70,000 new properties per year by 2029, according to the Portuguese Association of Property Developers and Investors (APPII).
The association says that legislative stability, industrialised construction, and faster licensing are essential to boost the supply of affordable homes.
At a recent meeting with the Parliament’s Infrastructure, Mobility and Housing Committee, APPII presented its recommendations to all political parties, highlighting the measures it considers crucial to combat the housing shortage.
“The discussion on housing must start with licensing. Without predictability, legal certainty, and less bureaucracy, projects will remain stuck for years and homes will never reach the market,” said Hugo Santos Ferreira, President of APPII.
“Without sufficient supply, it’s impossible to build homes at prices that Portuguese families can afford. Developers build the homes, not the State, so collaboration is key to solving this national challenge.”
Licensing delays are driving up home prices
Manuel Maria Gonçalves, CEO of APPII, warns that slow licensing processes are adding huge costs. Over the past three years, more than 50,000 homes were licensed but never built because they were not financially viable.
Each year of delay in licensing can add around €500 per square metre to the final cost of a home. For a 75m² property, that means an extra €37,500 per year, pushing prices further out of reach for families.
“Only through scale, industrialisation, and a stable regulatory framework can Portugal build more homes at prices that match family incomes,” says Gonçalves.
With housing shortages worsening, the APPII warns that urgent action is needed to avoid a full-blown housing crisis in Portugal.
