Portugal housing crisis: experts warn new rental law fails tenants

Portugal housing crisis rental law real estate prices tenant rights Habitar Funchal

Experts are warning that a new urban rental law proposed by the Portuguese government fails to address the country's housing crisis and instead leaves tenants more vulnerable. The law, which has already received general approval from parliament with support from the PSD, CDS-PP, and Iniciativa Liberal, is criticized for accelerating evictions and removing limits on rent increases.

Data from the Fundação Francisco Manuel dos Santos reveals that housing prices in Portugal have increased by 41.5% between 2020 and 2025, the highest increase among 18 EU countries, and by 81.9% since 2010. A study by Católica-Lisbon SBE shows that 92.1% of citizens are deeply concerned about rising prices, with 98.1% believing costs will continue to climb.

In Funchal, local opposition groups have criticized the postponement of the ‘Habitar Funchal’ affordable housing program to 2027, noting that despite a 500,000 euro budget allocation, no affordable housing will be provided this year. Meanwhile, victims of a real estate fraud in Palmela are calling for new legislative protections, such as mandatory electronic registration of promissory contracts and security deposit insurance, to prevent similar losses.

Entities

Católica-Lisbon SBE · Francisco Manuel dos Santos Foundation · Funchal · Funchal Municipal Council · Funchal Municipality · Fundação Francisco Manuel dos Santos · Gonçalo Antunes · Iniciativa Liberal · Juntos Pelo Povo · Palmela · Paulo Raimundo · Portugal

Claims

What the coverage asserts, and how many sources carry each claim.

[● 3 SOURCES] The new rental law removes limits on rent increases. www.diarioleiria.pt · zap.aeiou.pt · www.cmjornal.pt
[● 4 SOURCES] The Portuguese parliament approved the new rental law in general terms. www.diarioleiria.pt · zap.aeiou.pt · www.cmjornal.pt · www.dn.pt
[● 2 SOURCES] Funchal municipality will not provide any affordable housing under the ‘Habitar Funchal’ program this year. www.dnoticias.pt
[● 2 SOURCES] The ‘Habitar Funchal’ program has been postponed to 2027. www.dnoticias.pt
[● 3 SOURCES] The proposed urban rental law in Portugal accelerates evictions. www.diarioleiria.pt · www.cmjornal.pt · zap.aeiou.pt
[● 2 SOURCES] 500,000 euros were approved in the Funchal municipal budget for the ‘Habitar Funchal’ program. www.dnoticias.pt
[○ 1 SOURCE] Housing prices in Portugal have increased by 81.9% since 2010. recordeuropa.com
[● 2 SOURCES] Housing prices in Portugal increased by 41.5% between 2020 and 2025. recordeuropa.com · diariodistrito.sapo.pt