“Portugal is implementing measures to expand its social and affordable housing stock, yet significant gaps remain,” states a recommendation from the European Commission to the Council of the European Union regarding the country’s economic, social, employment, structural, and budgetary policies, released on Thursday as part of the European Semester exercise.
The Commission recommends that “solutions focused on supply increase should be accompanied by measures incorporating demand dynamics and incentives in rental and purchase markets.”
In high-demand areas, Brussels also advises removing barriers to renting vacant homes and renewing derelict buildings, as well as promoting “efficient public transport connections to reduce pressure on housing prices in urban centers and improve the attractiveness of other territories.”
Noting that “house prices in Portugal have been consistently rising, surpassing the EU average growth over the past decade,” Brussels highlights that “strong demand in major cities and the most popular tourist areas has been the main driver of price and rent increases, creating sharp disparities compared to inland regions.”
Regarding housing, the Commission emphasizes that low construction rates in recent years have limited the supply of new affordable housing, affecting young people’s prospects and increasing the number of homeless individuals or those living in informal settlements.
Additionally, Brussels recommends that “Portugal could benefit from promoting more efficient public transport solutions and investing in the attractiveness of other territories, thus alleviating pressure on the most congested areas.”
The European Semester is part of the EU’s economic governance framework, during which member states align their national budgetary and economic policies with EU-established rules.
