Portugal needs to triple housing construction
The Portuguese Association of Real Estate Developers and Investors (APPII) argued today in parliament that Portugal will have to triple its annual housing production, going from around 20,000 to at least 70,000 units per year by 2029.
This goal will only be achievable with “legislative stability, industrialization and truly fast licensing procedures,” the association stated in a press release.
In a hearing before the Infrastructure, Mobility and Housing Committee on rent reforms and housing investment, held at the request of Chega, APPII leaders announced that Portugal faces a structural deficit of around 300,000 homes, accumulated over the last decade.
From the association’s point of view, the imbalance between supply and demand is reflected in the high price of houses, which increased by 78% between 2012 and 2021, by another 9% in 2024 and by another 16.3% in 2025.
“In Lisbon, more than half of the houses currently for sale are above €500,000,” APPII said in a statement.
Citing 2024 data, developers added that 155,000 homes were sold in Portugal despite only about 35,000 new homes being licensed, a volume less than half that recorded two decades ago.
“Each year of delay in a licensing process can represent an increase of about €500 per square meter in the final cost of housing,” which means that a 75-square-meter house could become €37,500 more expensive in the space of twelve months, the association indicates.
Measures by the Government
APPII welcomed the Government and the parties that, on 20 February, approved two proposals with legislative authorisations, one with tax relief measures to encourage housing supply, and another with changes to licensing, urbanisation, and urban rehabilitation.
The proposals were approved with the favourable votes of the PSD, CDS-PP, and IL. The proposal with fiscal measures received abstentions from Chega, PAN, and JPP, and the licensing proposal received abstentions from Chega, PS, and JPP.
For the APPII leadership, the two proposals “introduced relevant changes, long requested by the sector, which now need to be worked on to have effective viability.”
However, the association warned that “new administrative steps or the weakening of mechanisms such as tacit approval could increase uncertainty and discourage investment.”
Within the ‘build-to-rent’ model, APPII argued that “objective criteria, contractual stability, and free transferability of investments” are essential for institutional investors.
“The discussion about housing has to start with licensing. Without predictability, without legal certainty, and without an effective reduction in bureaucracy, we will continue to have projects stalled for years and houses that do not reach the market,” said Hugo Santos Ferreira, president of APPII.
Overall, the current debate around housing supply highlights the depth of underlying demand and the market’s long-term potential. Housing construction and urban renewal are likely to remain national priorities in the coming years. As legislative frameworks improve, licensing reforms advance, and tax incentives take effect, the market is moving toward a more efficient and predictable environment. Supported by stable demand, demographic fundamentals, and policy adjustments, Portugal’s real estate sector continues to present solid foundations for long-term growth.
Reference link: https://www.theportugalnews.com/news/2026-02-25/portugal-needs-to-triple-housing-construction/981567
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