Porto Property Prices Surge by 24.4% as Housing Dominates Mayoral Election
The median value of homes in Porto has climbed to €2,580 per square meter, marking a 24.4% increase since 2021 and placing intense pressure on the city's housing market. This announcement comes as twelve candidates compete to succeed Rui Moreira as mayor in the upcoming October 12 election, with housing affordability emerging as the central theme of the campaign.
The sharp rise in property valuations, reported by the National Statistics Institute (INE), significantly outpaces the national average of €1,662 per square meter. This price movement is a key factor driving the political debate, as candidates present their strategies to address the housing shortage in Portugal's second-largest city. The city's population stands at 252,687, but it serves as the core of a metropolitan area with 1.7 million inhabitants, all feeling the effects of the tight market.
The main contenders in the mayoral race have made housing a cornerstone of their platforms. Manuel Pizarro, representing the Socialist Party (PS), has promised to create 5,000 homes with moderate rents targeted at the middle class and young residents. Filipe Araújo, the current vice-president of the municipality running as an independent, has committed to adding 2,000 homes to the public housing portfolio. Other candidates, such as Diana Ferreira of the CDU coalition, are emphasizing the need for urban rehabilitation and policies to combat real estate speculation.
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The economic context for this election is complex. Porto has experienced a robust tourism boom, recording 6.2 million overnight stays in 2024, an increase of 6.9% from the previous year. This generated €492 million in revenue, up 12.8% from 2023. While beneficial for the economy, this growth is widely seen as a contributing factor to the strain on the long-term rental market and the overall increase in housing costs.
The election marks the end of a 12-year period under the leadership of independent mayor Rui Moreira, who is ineligible to run again due to term limits. His tenure has been characterized by significant urban development and economic growth. The diverse field of candidates, which includes three members of Moreira's current team running on different tickets, reflects a broad spectrum of opinions on how to guide the city's future development while addressing the affordability challenges faced by its residents.
Real estate agencies and market analysts are closely watching the election, as the next administration's policies on new construction, rental regulations, and tourism management will heavily influence the market's trajectory. The debate among candidates highlights a critical tension between fostering economic growth and ensuring the city remains accessible for its inhabitants. Stay informed on Lisbon property market developments at realestate-lisbon.com.