Property investment and housing affordability in Lisbon and Porto

• Type: Book
• Date: 2022

Authors

Marques, Teresa Sá (Author) FLUP; Saraiva, Miguel Marinho (Author) FLUP; Matos, Fátima Loureiro de (Author) FLUP; Maia, Catarina (Author) FLUP; Ribeiro, Diogo (Author) FLUP; Ferreira, Márcio (Author) FLUP; Van Heerden, Sjoerdje (Author) Other

Publisher

Publications Office of the European Union

Luxembourg

Other information

DOI: 10.2760/55085

Abstract (EN): This study describes how the housing markets in Lisbon and Porto have developed over the past decade, in terms of property investment and housing affordability. Like many EU cities, Portugal’s two biggest cities have witnessed significant changes, becoming increasingly attractive to tourists and investors. Foreign direct investment in real estate and construction doubled in the last 10 years. This strongly contributed to the regeneration of inner city neighbourhoods. At the same time, these developments are associated with an increasing socio-spatial segmentation. In 2019, the average number of months until a dwelling is sold or rented has decreased to record low values. In parallel, the years of income needed for families to acquire a home substantially increased. In central Lisbon and Porto, as well as adjoining municipalities in the metropolitan area, the percentage of average monthly income spent on rental costs for the lower classes, can increase above 69%. A number of policies have been implemented to attract investment and to stimulate renovation, as well as to support and increase housing affordability. In response to its impact on house prices and evictions of residents, short-term accommodation for tourists has been progressively regulated since 2014. Nonetheless, in general, housing affordability in both cities decreased for the middle classes and the younger generations, whereas locally driven incomes are not compatible with the more globally driven house and rental price developments.

Language: English

Type (Professor's evaluation): Scientific

Notes: This publication is a Science for Policy report by the Joint Research Centre (JRC), the European Commission’s science and knowledge service. It aims to provide evidence-based scientific support to the European policymaking process. The scientific output expressed does not imply a policy position of the European Commission. Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use that might be made of this publication. For information on the methodology and quality underlying the data used in this publication for which the source is neither Eurostat nor other Commission services, users should contact the referenced source. The designations employed and the presentation of material on the maps do not imply the expression of any opinion whatsoever on the part of the European Union concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

No. of pages: 36

ISBN: 978-92-76-47610-8

Electronic ISBN: ISSN 1831-9424

Collection: JRC science for policy repoort