RENTALS CRISIS

Portugal’s rental market is undergoing serious difficulties despite increased demand for rental housing. Luís Lima, president of the association of real estate professionals and companies, says many businesses are having to either shutdown or negotiate the monthly rent for retail space in order not to suffer losses. Retail space owners have also become more accommodating in order not to lose tenants. Meanwhile, demand for rental housing has increased due to the mortgage lending crisis, but with the rising cost of rentals, tenants are paying more than they can afford. Luís Lima says the rental market has great potential but the government is failing it by taking its time over the enforcement of the new law for the rental property market (see article below).