Too many seekers. Too few places.

That’s the rental market in Porto. It’s like a massive flock of seagulls are circling and for every possible nest, a hundred birds dive for it. In most of the US, if there is a shortage of buildings, we just bulldoze more land and slap up some cheap monstrosities, complete with pool and clubhouse. This is old Europe. A city almost 1,000 years old, carved and constructed from huge granite blocks. There is a finite amount of space, all of it spoken for in one way or another. You’ll see many old buildings in a state of decay, waiting their turn for reclamation. Cranes are everywhere, indicating buildings under renovation.

Tourists, immigrants, and natives are looking for accommodation. Portugal is a country of slightly over 10 million citizens. The majority are concentrated along the coastline, primarily in Lisbon and Porto. Figures indicate that in 2021 there were over 1 million immigrants. They are arriving from Brazil, Portugal’s “sister” country, Europe, Africa, Asia, and North America. It’s estimated about 93,000 are displaced by the war in Ukraine. That’s a lot of people to take in.

Another contributor to limited housing is the shortage of skilled construction workers, engineers, and architects. Many young Portuguese citizens emigrated to other countries like Saudi Arabia, Angola, and the UK during the 2008 financial crisis, because they couldn’t find employment here.

Many locals in the know advised me to wait until December or January to look for a place, as tourist activity will be slower and owners more likely to negotiate. But from what I see, that will not significantly reduce the demand for long-term housing. Short term rentals are increasingly expensive, plus it would delay the application process for the D7 visa because it requires a permanent Portuguese address. Oh, and on September 11, Portuguese university students are informed which university they will be attending. Then the race is on for student housing.

It seemed like the best option was to utilize my natural hard-headed mentality and stick to the plan to find a place in August before my Airbnb stay concluded. Days of online search ensued. Any possibilities were sent to my realtor. She would immediately check them out and return a verdict of “already taken”.

The Score

With luck, determination, and a good professional, I located an attractive place under construction in the center of the city. My realtor, Erica, took me there on Thursday afternoon. All the units were available, from the ground floor up to the 4th floor.

The spaces in these old buildings can be quirky, divided to make best use of the building while adding updates like elevators, heat, air, and double pane windows. (Traditionally, there is neither heat nor air conditioning, and single pane windows let in cold and noise.) This one featured multiple T1 units (one bedroom). A T1+ (one bedroom and sort of/almost two) apartment was on the top floor, but bedroom number two would only fit a dwarf or small child. After thinking about it overnight, on Friday morning I asked Erica to put in a bid for the top floor apartment.

There were several risk factors. First, it’s a three-year lease, and second, they wanted a Portuguese guarantor who will assume the payments if I default on them. According to real estate laws, one can exit a three-year lease at 1 year and 4 months if all legal notification rules are followed, so I was not too worried about that. The biggest question was whether they would forego the guarantor.

I had a pins and needles weekend while I waited for a response. Late Monday morning, Erica informed me that the owner had agreed to the offer, with a few modifications. Needless to say, I was doing a happy dance. He is on vacation in August, so the paperwork will come in September. By the next day, all the units in the building had been snapped up.

I’m looking forward to having a real place of my own and decorating in extreme minimalist style. : )

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September Plans

The good news: I have an apartment lined up. The bad news: it will be late September at the earliest before I can move in. Across Portugal, Airbnb rates have gone crazy. Nothing was available for less than $2,000 – if you could get one. Other booking sites had few choices. I finally found a place within my budget in central Portugal, near the coastal town of Figueira da Foz. Flixbus has a $9 ticket for the hour and half ride, complete with Wi-fi outlets, and reserved seats.

To the beach!

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