Shantytowns Resurge in Greater Lisbon as Housing Crisis Deepens
A recent journalistic investigation has brought renewed attention to the proliferation of shantytowns, known locally as 'barracas', in the Greater Lisbon Area. A report from the newspaper PÚBLICO reveals that the housing crisis has forced a growing number of people to live in precarious, illegally constructed dwellings made of materials like zinc sheets and wood. This development indicates a severe shortage of affordable housing options in and around the Portuguese capital.
The issue captured public and media attention following the demolition of more than 50 such homes in the Talude Militar neighborhood in Amadora in July, which resulted in the displacement of dozens of residents. This event challenged the widespread perception that the problem of shantytowns had been resolved by the government's Special Relocation Program (PER), a major housing initiative from the 1990s. The report argues that this belief created a false sense of security, masking the underlying issues.
According to the investigation, which included visits to seven different informal settlements, the years following the PER have been characterized by a significant decrease in the public housing supply. This decline has coincided with a booming private real estate market that has seen property values and rental prices grow at a pace far exceeding that of local wages. The report explicitly links the resurgence of shantytowns to this market dynamic.
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“The shantytowns in the Lisbon Metropolitan Area never disappeared,” the report asserts. “On the contrary, they have been multiplying with the increase in rental prices, which have been unstoppable since covid-19.” This statement points to a direct causal relationship between the escalating cost of living in the formal housing market and the expansion of informal, precarious housing solutions on the city's margins.
The phenomenon reflects the intense pressure on the housing market in one of Europe's most popular destinations for tourism and investment. The lack of sufficient housing supply, particularly at affordable price points, has created a two-tiered market where a significant portion of the local population is unable to secure adequate housing. The social and economic consequences of this trend are now at the forefront of a national debate on housing policy, with policymakers under pressure to find effective solutions to increase supply and control costs. Stay informed on Lisbon property market developments at realestate-lisbon.com.