Lisbon, Sept. 23, 2026 (Lusa) - The rise in house prices over the last decade is one of the country's «most structural» problems, which will take time to resolve and will require a «significant increase in supply,» the finance minister said in parliament on Wednesday.
The problem does not stem from pressure on the demand side, but from «limited positive pressure on the supply side», said Joaquim Miranda Sarmento during a parliamentary hearing following a motion tabled by Livre to question the Government on the sale of state-owned property suitable for housing.
«The rise in house prices is one of the most structural problems facing the country», and the situation has worsened significantly over the last decade, particularly from 2016/2017 onwards, he noted.
«It is a problem that will take time to resolve before we can see house price growth more in line with inflation,» he said, arguing that it is necessary to «significantly increase supply».
The minister cited a chart from the Bank of Portugal's economic bulletin showing supply and demand over the decades since the 1970s, noting that the last ten years were the only period when supply was significantly below demand.
The minister stated that the government had taken action on three fronts to address the housing problem.
Under the first pillar, the government increased social housing provision, raising the target from 26,000 homes to 59,000 by the end of the decade.
Under the second pillar, the government introduced incentives for renting by reducing personal income tax and taking measures to facilitate the resolution of disputes between landlords and tenants in cases of non-payment, he explained.
Finally, the government introduced incentives for new-build construction through a reduction in VAT, the sale of state-owned properties and the simplification of planning permission procedures, to lower costs for developers, he said.
«It is along these three lines that we must continue to act,» he said, noting that the effects will be felt in the medium and long term.
The minister pointed out that, since 2024, the State has entered into 71 agreements with 64 local authorities to provide 95 properties, worth around €80 million, which the local authorities can use in their public housing policies.
The minister also said that Estamo has «practically» completed the State's property register, to check whether the properties are being used or are vacant.
Of the 80,000 public properties, the overwhelming majority are rural plots; many of the urban properties are used by the State, whilst others will become available, he added.
The minister also noted that the Government has increased housing funding, exceeding the target of delivering 26,000 public housing units set out in the PRR and projecting that the total will reach 59,000 by 2029.
PCT/ADB // ADB.
Lusa
