Afonso Rodrigues

Between 2022 and 2024, 42.5% of Portuguese companies with 10 or more employees said they had done something innovative — a new product, a new process, an in-house R&D project, even an idea tried and abandoned. Taken alone, that sounds like a healthy, innovative economy. Look closer, and the number tells a different story: a pandemic-era spike that is still working its way back to earth.

Innovation surged as companies scrambled to survive lockdowns and disrupted supply chains, then began sliding back. Large companies — 250 employees or more — innovate at nearly double the national rate, and two industries, information & communication and financial & insurance services, pull the average up. Total spending reached €4,865 million in 2024, up from €3,382 million in 2022, even as the share of companies willing to take part keeps shrinking.

The median rent for a one-bedroom flat in Lisbon now stands at around €784 a month — swallowing 85% of a minimum-wage pay check. Portugal's housing market has undergone a generational transformation. Between 2016 and 2026, the median rent per square metre rose by 74% nationally — outpacing wage growth by a factor of four.

The data, drawn from INE's quarterly rent index, shows a clear divide between inland and coastal Portugal. Municipalities in the Alentejo interior remain relatively affordable — the district median sits at €4.20/m² — while Greater Lisbon has crossed the €14/m² threshold for the first time. The gap has widened every year since 2019.