Portugal Parliament Debates Spending Amid Housing Crisis Protests

Portugal's Parliament began debating the center-right government's spending plans for the upcoming year on Tuesday, as protests demanding more action on a deepening housing crisis intensified. The debate coincides with planned demonstrations outside the parliament building in Lisbon.

Recent protests, some of which have involved police using batons and dogs, echo similar demonstrations that began last month in neighboring Spain over comparable housing affordability issues. The unrest in Portugal has prompted President António José Seguro, whose role is largely ceremonial but influential, to convene a Council of State for a meeting next week to discuss the ongoing protests.

A European Union report released late last year indicated that housing costs across Europe had surged by an average of 60.5% between 2015 and 2025. Portugal experienced one of the highest increases during this period, with a 147% rise, ranking third after Hungary and Lithuania. This trend shows no signs of abating; housing prices in Portugal rose by nearly 20% between the first quarter of last year and the first quarter of 2026, according to the National Statistics Institute. Rental prices have also climbed significantly, increasing by 68% since 2020.

Factors contributing to the rising costs include foreign buyers and investment funds acquiring Portuguese properties, including those in disrepair. The country's appeal to digital nomads, remote workers, and retirees, coupled with a surge in tourism, has led to many city center apartments being converted into short-term rentals. Local residents report being priced out of the market, with young people struggling to enter the property ladder and parents concerned about their children having to relocate far from home to find affordable housing, despite some Portuguese citizens realizing substantial profits from property sales.

The government has introduced measures to address the crisis, such as reducing taxes on new construction, implementing restrictions on short-term rentals, and pledging to build 145,000 new homes. However, officials acknowledge that the impact of these measures will not be immediate. Additionally, financing for infrastructure development is expected to become scarcer in 2027 as the European Union's post-COVID-19 economic recovery program concludes this year.

While Portugal has not experienced the same level of violence, arson, and looting seen in some other European countries, there have been complaints about heavy-handed policing during the removal of tents from city squares. Authorities are currently reviewing the appropriateness of the use of batons and police dogs during these removals.