Lisbon

1. Fado Music: While many may be familiar with Fado as a traditional Portuguese music genre, few know that Lisbon is home to the world's first Fado museum, dedicated to preserving and showcasing this soulful music that expresses the Portuguese concept of "saudade," or deep emotional longing. 2. The Hidden Aqueduct: Beneath the bustling streets of Lisbon lies the Águas Livres Aqueduct, an impressive 18th-century engineering marvel that once supplied the city with fresh water. Its stunning arches can be seen in various locations, and guided tours allow visitors to explore its tunnels and learn about its history. 3. The Lisbon Book Fair: Each year, Lisbon hosts one of the largest and oldest book fairs in Europe, the "Feira do Livro de Lisboa." This month-long event, held in the picturesque Eduardo VII Park, features thousands of books from local and international authors and is a beloved cultural gathering for book lovers, often featuring live readings, workshops, and book signings.

Lisbon’s housing market in 2025 remains highly competitive, marked by a supply shortage, rising prices, and strong demand from both international buyers and local residents. Around 76% of people in Lisbon own their home, while the private rental market makes up about 20% of the housing stock. Publicly owned (social) housing represents around 3% of total units or 16% of the rental sector—a notably small share. Median prices reflect the city’s continued desirability: the average apartment purchase price is about €3,644 per square meter in the metropolitan area, soaring to €9,000–9,500 per square meter in Lisbon’s historic center. For rentals, the median cost ranges from approximately €15 to €20 per square meter per month, depending on location and apartment quality. Rental prices have risen by over 8% in the past year, and rental yields remain robust, averaging 5–7%. Publicly owned housing in Lisbon primarily serves low- and middle-income residents. Social housing and public housing are generally used interchangeably in the city, referring to municipally managed properties for vulnerable populations. Recent municipal efforts have expanded public housing investments, including renovation projects and innovative programs with public-private partnerships, but the public sector’s share remains limited compared to total market demand. In summary, Lisbon’s housing is dominated by ownership, expensive to buy or rent, and the public sector plays a limited, though increasingly active, role in the affordable housing landscape.

Lisbon is experiencing an acute housing crisis driven by a chronic shortage of affordable homes, surging property prices, and increasing rental costs. Between 2012 and 2022, housing prices in Lisbon soared by 120%, while incomes remained largely flat. Rental prices have also shot up, rising more than 30% in the past five years. As a result, many residents, including low- and middle-income families, are increasingly priced out of the city. At least 15% of homes were bought as second residences in 2024, fueled by strong demand from foreign investors, particularly from the U.S., Brazil, and the U.K. This increase in second-home purchases, alongside booming tourism—which totaled over 55 million overnight stays by August 2024—has exacerbated the housing shortage. Only one new home has been built for every ten sold since 2018, illustrating a deep supply-demand gap. The crisis affects a wide range of residents: young people, who often emigrate for better prospects; low-income workers, who face overcrowded or inadequate housing; pensioners, who risk eviction or live in substandard conditions; and a growing number of homeless individuals, with the city recording 3,378 cases by late 2023. Rising speculation, unregulated rents, and the commodification of housing further squeeze vulnerable populations, making decent accommodation increasingly inaccessible for many living and working in Lisbon.

Lisbon’s city administration is addressing affordable and sustainable housing with a comprehensive, multi-year plan backed by substantial public investment. Central to the current strategy is an €800 million plan running from 2022 to 2028, the largest housing investment in decades. The city has set clear targets—one key goal is to deliver 13,000 new and renovated homes by July 2025, with broader national plans aiming for up to 26,000 homes by 2026 and 59,000 affordable units nationwide by 2030. Key initiatives include renovation and redevelopment of vacant flats, with 2,000 units targeted in 11 boroughs, and the construction or refurbishment of over 1,500 homes for low- and middle-income residents in the past two years alone. The city also now directly buys properties at market value, renovates them, and rents them out at affordable rates. Lisbon provides housing subsidies to low-income families to ensure that no one pays more than 30% of their income on rent. To further accelerate progress, licensing procedures have been streamlined, including digitalization and faster approvals, especially for small-scale projects. The city has also launched five housing cooperatives, granting citizens land for lower-cost development, and is piloting a public-private partnership where private firms lease municipal land for 90 years to construct affordable housing. Innovation is encouraged through initiatives like the Housing Hackathon, mobilizing the local tech sector to develop disruptive solutions. These efforts are reinforced by national programs such as 1st Right (Primeiro Direito), now with expanded eligibility for families spending over 40% of their income on housing, and major urban regeneration projects like “Parque Cidades do Tejo,” which will add thousands more homes and integrate sustainable urban planning.

Housing cooperatives in Lisbon represent a small but growing sector, aimed at providing affordable, community-driven alternatives to the city’s dominant ownership and private rental markets. Historically, cooperative housing played a significant role in the 1980s and 1990s, but activity declined sharply over the past decades. Today, only a handful of housing cooperatives remain active in Lisbon, and their overall share is minimal—recent municipal strategies indicate that cooperative units account for just a few hundred homes, with ambitions to reach 500 to 1,000 units in the coming years. This is a tiny fraction when compared to the city’s total housing stock. Recent years have seen a revival supported by new municipal policies. The city has launched the “Cooperativas 1ª Habitação Lisboa” program, granting surface rights to cooperatives over municipal land for up to 90 years, conditional on non-profit development and accessible pricing. As of 2025, five plots across various neighborhoods are earmarked for these projects, with the first new public contest resulting in the allocation of land for 18 cooperative homes. The city administration now actively promotes cooperatives as part of its affordable housing strategy, mapping suitable plots, streamlining urban licensing, and integrating cooperatives into major initiatives such as renovations and the Primeira Direito program. Cooperative models are seen as a way to counter property speculation, promote collective ownership, and foster inclusive, sustainable communities, though their quantitative impact remains modest for now.