The market is doing exactly what any market would do under the same conditions. The problem is not in the behaviour of the agents. It is in the conditions in which the system works.

Portugal continues to have one of the lowest levels of construction per inhabitant in Europe. We produce about half of the houses needed to balance demand. And this happens not because of a lack of interest or capital, but because of a set of barriers that continue to hinder development.

Time-consuming licensing, complex bureaucratic processes, high construction costs, difficulties in accessing financing and inefficient territorial management are just some of the factors that limit supply. Added to all this is a housing policy that often acts more on demand than on the creation of new supply.

Encouraging buying without significantly increasing construction has a predictable effect: more demand for the same supply. And when that happens, prices go up.

Another critical point is the rental market. In Portugal, it remains underdeveloped and unattractive to institutional investors. There is a lack of stability, a lack of confidence and a lack of a tax framework that encourages the creation of a true long-term rental market, as is the case in countries such as Germany or Denmark.

At the same time, there are still solutions that have been discussed for years, but have been little implemented. The industrialisation of construction, the creation of planned urban clusters, the professionalisation of the sector and administrative simplification are clear examples of measures that could have an immediate impact.

The problem is not a lack of ideas. It is a lack of execution.

And as long as we continue to postpone structural decisions, the market will continue to function in the only way it can: with little supply and high prices.

Real estate is not just a reflection of the economy.

It is one of its engines.

And if we want sustainable growth, we have to start by addressing what we have known for a long time.