Portugal’s housing shortage is being driven largely by a sharp decline in private construction, according to Economy and Territorial Cohesion Minister Manuel Castro Almeida, who has called on local authorities to urgently remove obstacles to new housing projects.
Speaking this month, during a ceremony marking the 37th anniversary of the Intermunicipal Community of the Aveiro Region (CIRA), the minister argued that increasing public housing alone would not solve the country’s growing housing crisis.
“There is a shortage of homes in Portugal because private developers are building fewer houses,” he said, highlighting the dramatic decline in construction over the past two decades.
“Today, Portugal builds as many homes in a month as it used to build in a week 20 years ago. That is what is causing the housing shortage.”
His comments put the spotlight on one of the underlying problems facing Portugal’s housing market: the lack of new construction to meet growing demand.
While the government has introduced measures aimed at improving access to housing, Castro Almeida stressed that encouraging private construction and accelerating planning procedures are essential to increasing supply.
The minister appealed directly to mayors and municipal authorities to treat housing as a priority, particularly by identifying suitable land for development and ensuring that applications submitted by private developers are processed without unnecessary delays.
He called for “maximum speed” in assessing construction projects, while making clear that this should not mean relaxing legal requirements.
“I am not asking you to approve impossible or illegal projects,” he said. “I am asking you to put pressure on your departments to ensure deadlines are met.”
Housing needs far exceed current supply
According to Castro Almeida, Portugal is expected to have 40,000 additional new or renovated homes available by the end of the year.
However, this remains considerably below the 133,000 homes identified as necessary by municipalities across the country.
The minister said funding had already been secured for the remaining housing needs identified by local authorities, but warned that financial resources alone would not be enough.
Municipalities must also take the initiative in identifying land and facilitating construction, he argued.
Castro Almeida insisted that the government was strongly committed to addressing the housing shortage, but his remarks suggest that the pace of new development, particularly in the private sector, remains a central challenge.
His intervention comes amid mounting pressure over housing affordability, with rising property prices and rents continuing to place home ownership and long-term accommodation beyond the reach of many households.
The minister’s remarks come against a backdrop of growing public anger over Portugal’s housing crisis, with thousands taking to the streets in Lisbon, Porto and other cities in recent weeks to demand affordable homes and stronger government intervention. Protesters have called for measures to curb soaring rents and property prices, arguing that housing has become increasingly unaffordable for many working families.