IN-PERSON Lisbon Livable Cities. Section A

Abstract

Lisbon’s housing crisis is a result of rising property prices, an increase in expats and foreign investors, and a shortage of affordable housing. The city’s climate, culture and relatively low cost of living have attracted expats and digital nomads, intensifying demand. Between 2012 and 2022, property prices rose by 120%, while rents increased by more than 30% in the last five years. Foreign buyers generally pay significantly more than locals, with a price difference of 80% per square meter in Lisbon. To address this, the Portuguese government launched the “Construir Portugal” program, introducing 30 measures to increase housing supply, expand public housing and improve accessibility for young people and vulnerable groups. The plan also includes simplifying regulations and reducing bureaucratic barriers through initiatives such as Building Information Modelling (BIM) and the Simplex policy. Despite these efforts, challenges remain. The rental market remains competitive, driven by high demand from expats and students, keeping prices high. This, however, presents investment opportunities, especially in areas aimed at young professionals and students. The government also repealed ineffective policies such as rent controls and rent freezes. Looking ahead, Lisbon will continue to attract foreign investors, but accessibility remains a key concern. The government’s focus on expanding housing supply and increasing public investment aims to provide both immediate relief and longer-term solutions. The challenge lies in balancing the needs of residents with the demands of a growing expat community, while ensuring access to sustainable housing for all.