Police clear Lisbon protest camp as figures expose Portugal's housing crisis

Portuguese police cleared a housing protest camp in Lisbon on Sunday (25 October), as new figures reveal house prices have risen 16.5 per cent in a year, the fastest increase in the European Union.

Authorities said several arrests were made, as anger grows over a housing crisis that has left many residents saying they're struggling to afford a home. 

Dozens of officers, some accompanied by police dogs, moved into Rossio Square shortly after 2 a.m., ordering protesters to remove their tents or face having them dismantled.

Minor injuries were reported during the operation, although the number of people arrested or injured was not immediately available, Reuters reported.

The confrontation followed a march by thousands of people through Lisbon on Saturday (24 October), after which demonstrators erected more than 100 tents in the square.

Hundreds later gathered to defend the encampment, days after police had dismantled a similar protest camp at the same location.

Behind the protests is a housing market where property prices are rising far faster than the European average.

Portugal leads EU house price surge

Portugal recorded the fastest annual house-price growth in the European Union in the second quarter of 2026, with prices climbing 16.5 per cent compared with the same period last year, according to Eurostat.

That was more than three times the EU average of 4.7 per cent, placing Portugal ahead of Bulgaria, where prices rose 15.5 per cent, and Lithuania, at 14.3 per cent.

The latest figures show that Portugal's property market continues to outpace the wider European market, adding to affordability pressures for households seeking to buy a home.

The longer-term picture is equally striking. According to the International Monetary Fund's (IMF) 2026 assessment of Portugal, house prices had risen 180 per cent between 2015 and the end of 2025, compared with 56 per cent across the euro area.

The IMF identified slow housing construction, underused properties and inefficiencies in the rental market among the structural factors contributing to the country's housing pressures.

Together, the figures highlight a housing market where rapidly rising prices and limited supply have made affordability an increasingly urgent economic challenge.

• UN report warns nearly 40% of world faces worsening housing crisis

What do protesters want?

At the centre of the dispute is proposed legislation that demonstrators say would weaken protections for tenants.

Protesters oppose a bill they say would make evictions easier and remove rent caps on new leases. It has passed an initial parliamentary reading, with the far-right Chega party abstaining.

Protesters are demanding that the government abandon the proposal, arguing that the changes would leave renters more vulnerable at a time when affordable housing is already in short supply.

The police operation has also raised questions about the authorities' response to the demonstrations.

Week of confrontations

Sunday's clearance was the latest in a series of confrontations between police and housing campaigners.

On Tuesday, police dismantled protest camps in Lisbon and Porto after ordering demonstrators to leave.

In Lisbon, officers arrested 55 people and seized 228 camping structures, according to police figures.

Some demonstrators formed a human chain to resist the operation, while police used batons after objects were thrown at officers.

Protesters later gathered in another central square, demanding the release of those detained and the return of their belongings. In Porto, demonstrators left their encampment following police orders, with no clashes reported.

The movement has continued despite the earlier clearances, with campaigners returning to Lisbon's Rossio Square over the weekend.

Housing anger spreads across Europe

Portugal's protests come amid wider demonstrations over housing affordability in several European countries, including Belgium, France, Italy and Spain.

• Spain proposes eviction ban until 2030 amid housing crisis
• 135 arrested as 35,000 gather for second nationwide protests in France
• Spanish politicians trade blame after death of housing protest figure

For protesters in Lisbon, the issue extends beyond rising property prices.

They argue that housing has become increasingly inaccessible to ordinary workers and young people, while the shortage of available homes continues to drive up costs.

With demonstrators returning to the streets despite repeated police interventions, Portugal's housing crisis is becoming an increasingly visible source of political and social tension.

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Portugal lisbon Protest housing crisis Eurostat IMF