The price of homes in Portugal soared by an average of 11.2% in the second half of the year amid fears that the Portuguese housing market is overheating.
However, there are signs that the market is slowing slightly after increases over five consecutive quarters.
The figures were released on Thursday on the same day that the British Council in Lisbon hosted a conference “Build the City” which discussed the problem of property speculation from investors and Air BnB pushing rent and property prices in central Lisbon up so high that ordinary middle class Portuguese families have been priced out of the market.
Build the City is a non-governmental association which discussed the challenges facing the city of Lisbon in 2018 including lack of city-centre affordable housing, lack of land on which to build new build housing and the impact of the ‘Disneyland’ effect on Lisbon whereby centres of historic and trendy cities become little more than tourist theme parks.
Build the City reflected on the opportunities and risks of increased tourism (4.5 million in Lisbon alone in 2017) and through the initiative, come up with “ways of solving great challenges” according to Duarte de Lima Mayer one of the association members.
The association says that real estate speculation is leading to the desertification of local populations from Lisbon City centre where around 36% of all accommodation in some historic neighbourhoods is now occupied by tourists or short-let tenants.
Source:- The Leader