Portugal faces the biggest housing crisis in its recent history and has the worst housing access among the 30 countries analysed by the Organisation for Economic Co-operation and Development (OECD).
In the third quarter of 2024, the housing affordability index reached 157.7 points, the highest value on record since 1995. The country’s situation is 36% worse than the OECD average and 50% above the eurozone average, according to the newspaper Expresso.
Over the past decade, Portugal has seen the greatest deterioration in housing access among the countries analysed. Since 2014, house prices have more than doubled, rising by 135.2%, while average incomes have grown by just 33%, creating an imbalance that makes homeownership increasingly unattainable.
The rising cost of living further worsens the situation. Excluding housing, inflation stood at 21% over the past decade—significantly lower than the increase in house prices. Even the growth in the minimum wage, which has risen by 69% since 2014, has not been enough to keep up with the soaring property market.
With house prices rising at a rate four times higher than average incomes, the situation creates major barriers for the middle class and young Portuguese, making homeownership an ever-greater challenge.
LandCo and Aedas to build a 116-home tower in the Algarve
Property developer LandCo and Aedas Homes have signed a strategic alliance to develop a unique project in the Portuguese Algarve. The two companies will build an initial residential tower with 116 homes in Portimão, named Ribamar, situated opposite Praia da Rocha and only 100 metres from the sea.
Urgent property sales in Portugal
Purchasing real estate doesn’t have to be a lengthy process, even in the heart of summer. If you’re planning to settle into your new home this season, there are ways to speed up your search and find great deals faster. One of the best options? Urgent property sales in Portugal, offering a unique chance to secure a home quickly and at an attractive price.
Portugal leads house price rises in the EU in the first quarter of 2025
Year-on-year house prices increased by 5.4% in the euro area, 5.7% in the EU, and... 16.3% in Portugal, according to Eurostat.
Potential pitfalls of buying property in Portugal: a guide for foreign buyers
Dreaming of buying a property in Portugal and starting a new life under the sun? It should be an exciting experience, but for many expat buyers, the process can feel overwhelming and complicated. The legal system is different, the paperwork is in Portuguese, and the buying process differs greatly from your home country.
Cheap property in Portugal under €150K: best deals for 2025
Looking for cheap property in Portugal under €150,000? Despite house prices at record highs, there are still great bargains available if you know where to look. From affordable apartments in quieter parts of the Algarve to budget-friendly homes on the outskirts of Lisbon and Porto, as well as charming rural properties, Portugal offers a variety of options for buyers on a budget.
Portuguese Government launches new housing policy to tackle rising prices
Portugal’s Prime Minister has announced a fresh housing strategy aimed at bringing together all key players in the property sector to help resolve the country’s housing crisis and curb price increases.
Country homes for sale in Portugal: only 24% under €100,000
Country homes in Portugal stand out for their charm, character and use of traditional materials such as wood, stone and brick. Also known as rustic homes, they appeal to buyers looking for a quieter lifestyle or an affordable second home in the countryside. However, finding one can be a challenge—whether you're a family or an investor—as country homes made up only 6% of all listings on idealista in the first quarter of 2025. And of those, just 24% are priced below €100,000.