The increase in real estate prices in Portugal is forcing families to move to the suburbs.

In Lisbon, the average cost of real estate is 490 thousand euros (R$ 2.8 million). This situation forces the Portuguese to look for housing in the suburbs and abandoned areas of the country.

Half of the capitals and other major cities have average annual incomes that are insufficient to qualify for a home loan. Much of the increase in real estate prices in Portugal is due to the arrival of foreigners, especially Brazilians. In order to attract foreign investors, the government has given them advantages when buying real estate.

The situation is becoming increasingly alarming, and experts believe it could spread to other regions of the country. To solve the problem of affordable housing, the government plans to renovate neglected buildings and create new housing complexes with lower prices. However, until the supply of housing increases, Portuguese people have to find alternative ways to live with expensive housing, such as moving to the suburbs or buying a home in the capital with the help of a bank loan.

Real estate prices are expected to rise in the coming years, but with limited interest rate increases.