Portugal and the real estate bubble

The article discusses the ongoing real estate price increases in Portugal, suggesting that while some indicators of a housing bubble exist, the situation is more accurately described as a crisis of affordability due to limited housing supply. Factors contributing to rising prices include population growth, immigration, and public policy incentives. The author argues that the construction sector has not kept pace with demand, leading to a significant housing deficit. Additionally, the dysfunctional rental market exacerbates the issue, pushing more people towards home buying. The piece concludes by emphasizing the need for effective public policies to address these challenges.