Thousands of people gathered outside Portugal's parliament in Lisbon on Tuesday to protest against a housing crisis that has left many young people struggling to afford a home, while lawmakers inside debated the government's draft budget for 2027.

A crisis years in the making

Portugal now faces one of Europe's sharpest affordability squeezes. House prices have more than doubled since 2017, and rents on new leases have nearly doubled, while wages have not kept pace. Young people have been hit hardest, but protesters stressed that older generations are feeling the pressure too.

Actress Erica Rodrigues, 39, told reporters the crisis affects young and old alike because, in her words, the cost of living is very high for what people earn, adding: “It is unbearable.”

Protest and police action

Tuesday's rally followed police operations on Sunday to dismantle tent camps set up by housing activists in Lisbon and Porto. Officers used batons in those operations, prompting allegations of excessive force. Organisers said several thousand people attended Tuesday's demonstration; police gave no crowd estimate.

Demonstrators demanded that the minority centre-right government drop a bill that would speed up evictions and end rent caps on new leases. The bill passed its first reading with the far-right Chega party abstaining. They also said they were defending the right to protest itself, which they believe has been threatened in recent days. Portugal's internal affairs watchdog has opened an inquiry into the police operations, and prosecutors have launched a separate investigation into officers' conduct. Sources: Reuters and BusinessToday Malaysia.