Tourism, driven by local accommodation and foreign investment, is a central factor in the housing crisis in Portugal. Real estate appreciation has skyrocketed, with house prices increasing by 121% between 2013 and 2023, making access to housing the worst in the OECD. Lisbon, Porto and the Algarve are the most critical areas.

 

Tourism, driven by local accommodation and foreign investment, is a central factor in the housing crisis in Portugal. Real estate appreciation has skyrocketed, with house prices increasing by 121% between 2013 and 2023, making access to housing the worst in the OECD. Lisbon, Porto and the Algarve are the most critical areas.

 

Main Impacts of Tourism and Speculation:

Local Accommodation (AL): The conversion of permanent housing into tourist units reduces the supply for residents, increasing rental and purchase prices.

Real Estate Speculation: Foreign investment (including Golden Visas) and the search for appreciation inflated prices, which in 2025 rose 17.6%, reaching all-time highs.

Affordability Crisis: Wages have not kept pace with rising costs, forcing families out of urban centers.

Contradiction of the Housing Stock: While demand increases, there are about 730 thousand vacant or abandoned houses in the country, evidencing failures in the management of the real estate stock.

 

Consequences and Responses:

Social Protests: The population has protested against the lack of affordable housing.

Government Measures: The government has announced plans to increase housing supply by 2030, including land redevelopment.

The situation is considered a real estate bubble, where tourism acts as an engine of appreciation, but also as a cause for the expulsion of residents.