Local Elections 2025: PSD Secures Lisbon and Porto – What’s Next for Housing?

Portugal’s 2025 municipal elections were held on 12 October 2025, with the Social Democratic Party (PSD) winning the polls in both Lisbon and Porto.

Many voters put housing policy at the top of the agenda, given ongoing and current concerns about affordability.

Incumbent Carlos Moedas was re-elected as the mayor of Lisbon, and Pedro Duarte won the election in Porto, with the PSD achieving a general victory across the country.

PSD Wins 136 City Halls across Portugal

PSD emerged as the clear winner in the elections, winning 136 city halls throughout Portugal. PS (Socialist Party) is now the second largest political force in local terms, with 126 elected mayors.

20 independent groups claimed victory, while CDU (Unitary Democratic Coalition) obtained its worst result yet, losing two district capitals and gaining only 12 city halls.

Chega, which was predicted to get better results, won three city halls, with the number of votes compared to the national elections being noticeably lower (1.4 million votes in national elections to only 600,000 in total in local elections).

What does this mean for housing in Lisbon?

Carlos Moedas, the winner of the election in Lisbon, was running with a new coalition, “Por ti, Lisboa” (For You, Lisbon). This strengthens the partnership between the PSD and CDS-PP (CDS-People’s Party) and adds the support of IL (The Liberal Initiative).

According to his official website, his proposals surrounding housing include:

• The construction of new housing neighborhoods to boost Portuguese real estate supply: 250 hectares in Vale de Chelas, Quinta do Ferro, Vale de Santo António, and Casal do Pinto. The goal is to construct 2,400 homes in Vale de Santo António and more than 1,000 new homes in other areas in Vale de Chelas.
• Implement the Municipal Housing Plan and establish partnerships with private and social sectors to promote affordable housing projects.
• Rehabilitation of municipal neighborhoods and the continuation of the “Morar Melhor” program to renovate neighborhoods, such as Bairro 2 de Maio, Casalinho da Ajuda, Bairro das Olaias, Bairro do Rego, and others. The renovation of 710 municipal homes is also planned.
• Strengthen rental programs, such as the Supported Rental Program aimed at low-income families and the Affordable Rent Program, to help make renting more accessible.
• Promote housing construction by cooperatives on municipal land at affordable prices and establish an exceptional scheme for the recovery and conversion of attics into housing spaces.
• Initiatives to boost inspections and to combat illegal occupation of municipal properties.
• Implement the new Short-Term Rental Regulation, with greater focus on inspections.

What does this mean for housing in Porto?

In Porto, PSD, CDS-PP, and IL joined forces to form the “Porto Somos Nós” (We Are Porto). According to his electoral platform, the proposals from Pedro Duarte in relation to housing are:

• To map all underutilized state and municipal land and buildings to create housing, particularly for young people, and student accommodation.
• Boost the number of affordable rental homes by four (aiming to increase affordable rental homes from the current 410 units to 1,600 by the end of the term).
• Promote built-to-rent projects based on public-private partnerships.
• Invest in modern construction methods, such as prefabricated homes in Portugal, modular homes, etc.
• Strengthen municipal incentives for affordable housing and maintain the IMI (municipal property tax) and IMT (property transfer tax) exemptions and reductions for affordable housing and Portuguese urban rehabilitation projects.
• Create the “Ficar no Porto” (Stay in Porto) program, which will focus on facilitating access to first housing by supporting rent payments for young people (18-35), through grants of up to €200.
• Strengthen the “Porto Solidário” (Solidary Porto) program to reinforce support for the most vulnerable families.
• Upgrade and renovate public spaces within municipal housing stock.
• Regulate short-term rentals (Alojamento Local) by setting proportional limits in areas that are under high tourist pressure and increasing enforcement measures.

Future of Housing Policy

PSD holds Lisbon and Porto, and the focus in both cities centers on expanding supply with new construction, making housing more accessible, promoting urban rehabilitation, and strengthening and expanding public-private partnerships.

While challenges do remain – such as to ensure accessible and affordable rental opportunities – both mayors have pledged to improve access to long-term rentals, signalling a pragmatic approach to addressing the housing issues in Portugal.