Insight
Portugal's housing gap has turned positive for the first time in 11 years, suggesting new housing supply is beginning to meet demographic demand.
Portugal’s housing supply improves as short-term rental scrutiny continues
Summary
Portugal's housing market is stabilizing with increased completions in 2025, yet STR regulations are tightening. Municipalities are restricting Alojamento Local licenses, especially in Lisbon and Porto. Policymakers aim to balance tourism with local housing needs, signaling a shifting environment for STR operators.
Key takeaway