Portugal's residents struggling with rising rents | DW News

Summary

Portugal is experiencing a tourism resurgence post-pandemic, with 2.8 million visitors in the first quarter of the year, surpassing pre-pandemic figures. However, this boom has led to soaring rents, making it increasingly difficult for locals to afford housing. Residents are facing existential fears as real estate prices rise dramatically, and many are pushed into illegal housing. While the government considers measures to control the tourist rental market, experts warn that simply regulating demand won't solve the broader issue of inadequate housing supply, exacerbated by rising interest rates that further strain the financial stability of local families.

Takeaways

• 🌍 Portugal has welcomed 2.8 million tourists in the first quarter of the year, exceeding pre-pandemic levels.
• 📈 Rising tourism is driving up rents, making it increasingly challenging for locals to afford housing.
• 🏠 Many residents face existential fears due to escalating housing costs, with some having to move from their homes.
• 💰 The disparity between wealthy newcomers and struggling locals is significant, highlighting a growing wealth gap.
• 📉 Rent increases are affecting even those with stable jobs, forcing them to seek alternative housing options.
• 🚧 The government is exploring measures to restrict tourist rentals and convert vacant properties into local housing.
• 🏗️ Experts emphasize the need for public housing projects to address the ongoing housing crisis in Portugal.
• ⚖️ Both domestic demand and international buyers contribute to the rising real estate prices, complicating the situation.
• 🏦 Rising interest rates are making borrowing more expensive, potentially reducing demand from domestic buyers.
• 🔍 The long-term solution lies in balancing tourism growth with sustainable housing policies to maintain social harmony.

Q & A

What was the status of tourism in Portugal before the pandemic?

Before the pandemic, Portugal was one of Europe's top tourist destinations, welcoming a record 2.5 million tourists in the first quarter of 2019.

How many tourists did Portugal welcome in the first three months of the current year?

In the first three months of the current year, Portugal welcomed 2.8 million tourists, exceeding the pre-pandemic record.

What challenges are residents facing due to the rise in tourism?

Residents are experiencing dramatic rent increases, making it increasingly difficult for them to afford housing and make ends meet.

What specific example illustrates the housing situation for residents?

Milita Thomas Fernandez, a resident, fears for her illegal home on the outskirts of Lisbon, where many houses have been demolished, leaving uncertain living conditions.

What are some factors contributing to rising rents in Lisbon?

Factors include limited new construction due to past economic crises, an influx of tourists, and rising demand from migrants and retirees looking to settle in Portugal.

What is Georgina Simone's situation regarding her rent?

Georgina Simone, a nurse, pays 300 Euros in rent but is fearful of a rent increase, especially since she works two jobs to afford living expenses.

How does the current economic situation affect the construction of public housing?

The mayor emphasizes the need for public housing projects and suggests expropriating land to address housing shortages, as illegal neighborhoods are likely to grow without intervention.

What are the government's plans to address rising housing costs?

The government aims to implement a program to prevent flats from being rented out to tourists and to force vacant flats to be rented out to locals.

What role does tourism play in the rising real estate prices in Portugal?

While tourism contributes to rising real estate prices, the causes are broader, involving a combination of demand from various sources and limited housing supply.

How might rising interest rates affect housing demand in Portugal?

Rising interest rates are expected to increase financial stress for domestic buyers, potentially reducing demand for homes, though foreign buyers using equity may remain resilient.