Portugal House Prices Rise 7.5% as Housing Protests Spread Across Europe

Portugal's property market continued to expand in October, with asking prices rising by 0.7% compared with September.

The latest idealista figures show considerable differences between cities. Porto's median advertised price reached €4,339 per square metre, while Funchal stood at €4,045.

Lisbon's annual increase was relatively modest, at 3.9%. Prices in the capital also slipped slightly during October.

Smaller cities recorded much faster growth. Vila Real led with an annual increase of 20.3%, followed by Guarda at 18.4% and Beja at 17.6%.

The figures suggest that buyers seeking cheaper alternatives to Lisbon and Porto are encountering rising prices elsewhere.

Portugal's housing difficulties extend far beyond the latest monthly figures.

The International Monetary Fund's 2026 assessment found that residential property prices had risen by approximately 180% between 2015 and the final quarter of 2025, compared with 56% across the euro area.

The IMF identified insufficient construction, inefficient use of existing properties and weaknesses in the rental market as major contributors.

Labour shortages, planning delays and low construction productivity have restricted development. Foreign investment and tourism have added demand in particular locations, but neither fully explains the national shortage.

The IMF also found that new mortgage lending accounted for less than half the value of residential purchases in recent years. Buyers using savings or other financing sources are less directly exposed to mortgage affordability constraints.

This creates a disadvantage for households that depend on salaries and mortgage borrowing.

What Lisbon property prices mean for ordinary earners

At October's advertised price, a 70-square-metre apartment in Lisbon would cost approximately €437,000, before taxes and purchasing expenses.

Portugal's average gross monthly remuneration was €1,694 in 2025, according to the country's statistics authority.

On a simple annualised basis, the apartment would cost approximately 21.5 years of that average gross income.

This is an illustrative comparison, not an official affordability index. It compares Lisbon asking prices with national earnings rather than Lisbon-specific salaries. It also excludes taxation, borrowing costs and household savings.

Renting presents another challenge. A one-bedroom apartment in Lisbon can cost around €1,500 per month, while Portugal's minimum wage stands at €920 before tax.

For someone earning the minimum wage, the rent alone would exceed their entire monthly salary.

Many workers consequently depend on shared accommodation, family support or cheaper housing further from employment centres. Others postpone leaving their parents' homes.

Europe's property markets: Where prices are rising and slowing

Portugal's October figures contrast with developments elsewhere in Europe.

In Spain, the latest available idealista figures showed asking prices rising by 11.8% annually in September, reaching €2,930 per square metre.

Madrid was substantially more expensive, at €6,458 per square metre. Yet its annual increase was only 2.4%.

A hypothetical 70-square-metre property in the Spanish capital would therefore cost approximately €452,000 at the advertised rate.

Italy recorded more moderate growth. According to Immobiliare.it Insights, asking prices rose by 4.9% annually in the third quarter, while advertised rents increased by 3.9%.

Milan remained the country's most expensive regional capital, with asking prices averaging €5,665 per square metre.

The United Kingdom experienced a markedly different October.

The Nationwide House Price Index recorded annual growth of just 0.5%, the weakest reading since January 2024. The average property price stood at £273,566.

Mortgage costs and economic uncertainty continued to constrain demand.

British rents, however, were still increasing. The Office for National Statistics reported that average monthly private rents reached £1,406 in September, up 3.8% annually.

In the Netherlands, Statistics Netherlands recorded a 2.9% annual increase in existing-home prices in September. The average transaction price was €504,658.

Prices fell by 0.4% compared with August, but remained 17.3% above their previous peak in July 2022.

Ireland registered annual property-price growth of 5.1% in August, according to its Central Statistics Office. The median transaction price over the preceding year was €400,000, rising to €500,000 in Dublin.

Poland's October figures revealed a divided market.

Otodom recorded annual developer asking-price increases of 9.6% in Warsaw and 7.7% in Wrocław. In Kraków and Katowice, growth was only 1.8% and 1.4% respectively.

With Polish consumer inflation estimated at 3.5%, advertised prices in several cities declined in inflation-adjusted terms.

The latest comparable Eurostat figures cover the second quarter of 2026. They show annual house-price growth of 4.7% across the EU, including 15.5% in Bulgaria and 14.3% in Lithuania. France recorded a 0.8% decline.

These figures cover different periods and use different methodologies. Asking prices from property platforms should not be treated as equivalent to official transaction-based indices.

Lisbon protests bring police investigations and an eviction dispute

Portugal's housing protests intensified in late October.

On 24 October, demonstrators marched through Lisbon and established a camp in Rossio Square. Police dismantled it the following morning.

Further demonstrations took place outside parliament on 27 October. Protesters demanded affordable housing and the withdrawal of legislation that would accelerate evictions and remove rent caps on new tenancy agreements.

Activists also accused police of excessive force during earlier operations.

Portugal's internal affairs watchdog opened an inquiry. Prosecutors launched a separate investigation into police conduct.

The government defended the police response and maintained its proposed rental reforms.

Prime Minister Luís Montenegro argued that changes were necessary to improve conditions in the housing market. He refused to withdraw the bill but indicated that amendments could be considered before a final parliamentary vote.

The legislation passed its first reading, with the far-right Chega party abstaining.

The protests have prompted investigations and greater scrutiny of housing legislation. They have not secured the withdrawal of the government's proposals.

Spain's housing protests trigger a political crisis

Spain experienced a more immediate political confrontation.

On 23 September, María del Carmen Abascal, an 87-year-old Madrid resident, was evicted from the apartment where she had lived for decades.

Her eviction sparked demonstrations and an encampment in Puerta del Sol.

On 2 October, parliament rejected two emergency housing decrees introduced by Pedro Sánchez's government. The opposition People's Party, Vox and the Catalan party Junts voted against the measures.

The defeat exposed the government's inability to secure sufficient parliamentary support.

On 5 October, Sánchez announced an early general election for 29 November.

The government approved revised housing measures the following day.

On 7 October, Abascal died in hospital. She had reached an agreement that would have allowed her to return home but died before signing the new contract.

Her death intensified public anger over housing policy.

The revised government package contains 21 measures. These include stronger tenant protections, restrictions on speculative property activity and financial support for housing.

One proposal establishes a €10 billion financing scheme offering eligible first-time buyers interest-free loans of up to €50,000.

The first decree entered into force on 8 October, subject to parliamentary ratification. The second also requires approval.

A parliamentary vote was being planned for 12 November, although the date had not been formally confirmed by 2 November.

Trade unions have also called a general strike for 11 November, immediately before the planned parliamentary session.

The housing dispute contributed to a parliamentary crisis, emergency legislative action and an early election. The revised measures still face a political test.

Amsterdam and Dublin: Protests without immediate policy reversals

On 10 October, hundreds demonstrated in Amsterdam under the slogan Houses for people, not for profit.

Campaigners demanded lower rents, stronger tenant protections and greater access to social housing.

The protest followed a government housing plan announced in September. It included €7 billion for affordable construction but had already drawn criticism from tenant and landlord organisations.

The Amsterdam demonstration produced no confirmed legislative reversal.

In Dublin, more than 1,500 students marched on 1 October over education funding, living costs and accommodation shortages.

Organisers argued that expensive accommodation was restricting access to higher education, particularly for students without substantial financial support.

No specific housing concession can yet be attributed directly to the October march.

Can Europe's housing policies deliver affordable homes?

The European Commission presented its first Affordable Housing Plan in December 2025, before the latest demonstrations.

It proposes more construction, simpler administrative procedures, investment in affordable housing and action on short-term rentals in areas facing severe pressure.

The Commission estimates that only 6–7% of EU housing stock is social housing.

National governments remain responsible for most planning, rental and property-tax decisions.

The policy choices involve difficult trade-offs.

Rent controls can protect existing tenants, but poorly designed restrictions may discourage landlords from offering properties. Buyer subsidies can improve access to mortgages, yet may raise prices when housing supply remains limited.

Increasing construction is essential in markets with persistent shortages. It will not provide immediate protection for households facing eviction.

Governments must also consider where new homes are built and whether local workers can afford them.

Spain's November parliamentary vote will test the durability of its emergency measures. Portugal's forthcoming vote will determine whether its disputed rental reforms proceed unchanged.

Both governments face pressure to demonstrate results beyond legislative announcements.