Lisbon

1. Fado Music Origin: Lisbon is the birthplace of Fado, a unique genre of Portuguese music characterized by its melancholic tunes and lyrics that often express themes of longing and nostalgia. It is an integral part of the city's cultural identity, and many locals and tourists may not fully appreciate its significance. 2. The World's First Elevator: The Santa Justa Lift, built in 1902, is one of the first elevator systems in the world. It was designed to connect the lower streets of the Baixa district with the higher Largo do Carmo and offers stunning views of the city from its viewing platform. 3. The Tile Tradition (Azulejos): Lisbon is famous for its azulejos, decorative ceramic tiles that adorn many buildings throughout the city. While tourists often admire these beautiful tiles, many locals may not realize that this art form dates back to the 13th century and has been influenced by various cultures, including Moorish and Spanish styles.

Lisbon’s housing market in 2025 is defined by a persistent supply shortage, high prices, and strong demand from both local and international buyers. Around 76% of residents own their homes, while approximately 20% rent. Publicly owned housing—mainly for low- and middle-income groups—makes up about 3% of the total housing stock, which equates to 16% of the overall rental market. Social housing and public housing are generally used interchangeably in Lisbon, both referring to municipally managed housing for vulnerable and low-income populations. The median price to purchase an apartment in the Lisbon metropolitan area is around €3,644 per square meter, but soars to €9,000–9,500 per square meter in the city’s historic center. To rent, monthly median prices range from €15 to €20 per square meter, driven higher by limited supply and high demand. Rental yields are robust, averaging 5–7%. Public housing’s market share is small and, despite recent municipal investments and innovative partnerships, demand still vastly outweighs supply. New cooperative models and affordable housing programs are being introduced, but their current impact remains limited. The dominance of home ownership, rising investment, and insufficient public housing leave affordable options scarce for many Lisbon residents.

The housing crisis in Lisbon is characterized by a severe supply shortage, high prices, and intense demand from both local and international buyers. The city's housing market is dominated by home ownership, with about 76% of residents owning their properties, while 20% rent. Publicly owned housing, primarily for low- and middle-income groups, is limited, making up about 3% of the total housing stock. The median price per square meter for purchasing an apartment in the Lisbon metropolitan area is approximately €3,644, with prices reaching up to €9,000–9,500 in the city center. Rental prices are similarly high, ranging from €15 to €20 per square meter monthly. This situation is exacerbated by foreign investment and tourism, which have driven up property values and rents. The housing crisis affects a wide range of individuals, including low-income families, who often struggle to afford housing, and younger residents, who are increasingly considering moving abroad due to the unaffordability of the city.

Lisbon’s city administration is pursuing an €800 million housing investment plan (2022–2028) to address affordable and sustainable housing. The city’s primary target is to deliver 13,000 newly built or renovated homes by July 2025, aiming for a broader national target of 26,000 by 2026 and 59,000 by 2030. Key activities include large-scale renovation of vacant flats, direct municipal purchase and refurbishment of properties for affordable rent, and provision of rent subsidies to ensure households pay no more than 30% of income on housing. Licensing for construction has been digitized and streamlined to accelerate project delivery. Lisbon supports the creation of housing cooperatives by granting land for lower-cost development and has launched five such cooperatives to date. A new public-private partnership model allows private developers to lease municipal land for 90 years, building affordable rental homes. Urban innovation is encouraged through the Housing Hackathon, inviting tech-sector solutions for the housing crisis. The city also restricts new short-term tourist rentals in saturated areas to prevent further erosion of the residential stock. Nationally, broader measures support these efforts, including legal changes to allow rural land conversion for sustainable affordable housing, tax exemptions for young buyers, and a reinforced “Affordable Rent Program.” These initiatives reflect a multi-layered approach to both affordability and sustainability in Lisbon’s housing sector. Lisbon’s strategy, “Habitação acessível e sustentável,” is communicated as a holistic and urgent response, prioritizing both immediate relief and long-term structural transformation of the city’s housing landscape.

In Lisbon, housing cooperatives are being revitalized as part of the city's strategy to address its acute housing crisis. The "Cooperativas 1ª Habitação Lisboa" program aims to increase affordable housing by granting municipal land to cooperatives for up to 90 years, with the goal of building up to 500 homes. Currently, only a few cooperatives are active, and they represent a small fraction of the city's total housing stock. The sector is developing through initiatives like municipal land allocation and streamlined construction licensing. However, financing remains a challenge, delaying project implementation. The city's investment plan includes focusing on small plots for cooperative projects, aiming to provide community-driven housing alternatives. Despite these efforts, cooperative housing still constitutes a minimal share of the city's housing units. Lisbon's approach includes promoting cooperative ownership to counter speculation and foster inclusive communities. The city has identified several plots for cooperative projects across various neighborhoods, signaling a renewed commitment to this sector.