Portugal economy: Record mortgage credit and high rental costs

Portugal is experiencing diverse economic shifts across its real estate and fiscal sectors. In the first half of 2026, the country recorded a budget surplus of 0.5% of GDP, according to the Instituto Nacional de Estatística (INE).

In the housing market, mortgage credit reached a record high in July, prompting the Banco de Portugal to consider measures to moderate household debt growth. While house price growth showed signs of deceleration in the second quarter, rental costs remain a significant burden. Data from Idealista indicates that the median monthly rent for a T1 apartment is approximately 1,128 euros, which is over 120% higher than the cost of renting a single room. Lisbon and Madeira remain among the most expensive regions for renters, while districts like Guarda and Bragança offer more affordable options.

In the industrial sector, investment in logistics and industrial real estate grew by 35% in the first half of 2026, reaching 181 million euros. Meanwhile, in Lisbon, the number of local lodging (Alojamento Local) licenses has decreased by approximately 40% over three years due to stricter regulations and inspections, though this has not resulted in a decrease in general housing prices.