Lisbon's Transformation Sparks Duality in Public Perception
A recent opinion piece by journalist Bernardo Mendonça in the national newspaper Expresso has brought a widespread public debate into sharp focus, articulating the conflicting views on Lisbon's recent transformation. The column recounts conversations that reflect a city grappling with its identity, caught between the visible benefits of foreign investment and the tangible pressures of gentrification. One perspective, overheard in a local restaurant, champions the changes, asserting, "Lisbon was ugly, dirty, old, and now it's 'nice'... the foreigners renovated the city." This viewpoint credits the influx of capital and tourism, particularly through the local lodging (Alojamento Local) sector, for beautifying public spaces and making the city more modern and attractive on an international scale.
This sentiment, however, stands in stark contrast to the experience of many residents, including a returning Portuguese national cited in the article who expressed dismay at the city's perceived decline in cleanliness and authenticity, dubbing it 'Lixoboa'—a portmanteau of 'trash' and 'Lisbon'. This perspective is substantiated by a recent Expresso/SIC poll conducted by the research institute ICS/ISCTE, which found that a majority of respondents believe the quality of life in Lisbon has deteriorated concerning access to housing, public safety, street cleaning, and traffic. The primary driver of this discontent is the 'stratospheric' rise in property prices, largely attributed to the influx of affluent expatriates and digital nomads drawn by lifestyle and tax incentives.
The journalist also touches upon the introspective turn some foreign residents are taking, referencing a Guardian article by an expat questioning the impact of the digital nomad community. Mendonça reflects on this, suggesting that rather than an exodus, a more integrated approach is needed where new residents contribute actively to the city's social fabric through community work, volunteering, and supporting local businesses. This, he argues, would foster a more 'fair, healthy, and balanced exchange' between the established and new populations of Lisbon.
The column ultimately directs scrutiny towards Portuguese policymakers, suggesting a long-standing 'dazzle' with foreign capital led to the aggressive promotion of programs like the Golden Visa and the Non-Habitual Resident (NHR) tax regime. These policies, while successful in attracting investment, were implemented without adequate measures to protect the local housing market and culture. The economic consequences are clear, with official data showing Portugal experienced the highest house price increase in the European Union in early 2025, at 16.3%.
Simultaneously, data from 2023 revealed that 115,000 individuals under the NHR status benefited from significant tax reductions, saving an average of €11,000 per person. This combination of factors has fueled what the article describes as 'unbearable gentrification,' creating a cost of living that is increasingly prohibitive for a large segment of the Portuguese population and pushing long-time Lisbon residents to seek housing in peripheral areas. The debate encapsulates the central challenge facing Lisbon today: how to balance economic growth with social equity and the preservation of its unique cultural identity.
Find properties that match your lifestyle preferences at realestate-lisbon.com.
