LUSA 01/09/2026

Lusa - Business News - Portugal: House price moderation is inevitable - PM

Lisbon, Jan. 8, 2026 (Lusa) - Portugal's Prime Minister Luís Montenegro said on Thursday in parliament that "price moderation" for buying or renting housing will be inevitable after "risky measures" by the government, which will not have immediate results."

"I am willing to take risks, to weather the storm of the transition period and believe that this path will produce results, because once there is greater supply in the housing market, whether for rent or purchase, it seems to me that price moderation will be inevitable," said the head of government during the fortnightly debate in parliament.

Montenegro was responding to Fabian Figueiredo, a member of the Left Bloc, who denounced "the biggest housing crisis in the history" of the country.

In a speech using football slang, the Left Bloc member dubbed the programme for the sector announced by the Government "a resounding own goal".

The prime minister now wants to lower taxes on real estate funds and construction companies because he thinks that will miraculously solve the housing crisis. He has created a curious concept of moderate rent that can go up to €2,300 (...), which in the real lives of the Portuguese means eviction," Figueiredo criticised.

The Left Block politician questioned the prime minister whether "he is finally willing to listen to the recommendations of the European Commission, which has already shown him the yellow card and is calling for regulation of excessive local accommodation tourism, and the OECD, which is asking him for taxation that will end the problem of empty houses, or will he continue with open-door policies for property speculation?"

Montenegro stated that the government's measures for the sector "are risky" and "involve a transition period, which does not imply immediate results".

After the prime minister's statement at Christmas, in which he asked the Portuguese people for "a Cristiano Ronaldo mentality", the Bloc MP said that what is needed is not "a mental coach in São Bento, but a government focused on solving health problems and ensuring that Portuguese residents can afford to pay for their homes".

"We know that the country does not need a “mental coach” in São Bento, but perhaps one is needed at the headquarters of the Left Bloc. But I don't want to interfere in that," he replied.

PAN MP Inês Sousa Real continued with the football references, stating that "sooner or later, the Portuguese people will show a red card" to the head of government, asking the prime minister if he will "make medical emergencies and the response of public service a priority, with resources and investment, and when there will be effective oversight in the case of animal welfare".

Montenegro stated that the government is "complying with all areas of reform" and analysing proposals presented by the independent technical commission and other agents, including an opposition party, "to integrate into the [government's] idea to improve the agility of the system for greater responsiveness".

On the other hand, he stated that "the change in oversight did not imply a decrease in the public administration's capacity to promote animal welfare policies, on the contrary."

JH/ADB // ADB.

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