Portugal’s stricter immigration policies are creating labour shortages in the construction sector, raising concerns over the country’s ability to tackle its growing housing crisis. Industry leaders say migrants make up a significant portion of the workforce, and tighter rules have reduced the number of workers available for major housing and infrastructure projects.

The country faces a shortage of around 300,000 homes and aims to build 150,000 affordable houses by 2030 through an EU-backed programme. However, construction groups estimate the sector still needs tens of thousands of additional workers, warning that labour shortages could delay projects, including Lisbon’s new airport and affordable housing developments.

Many migrant workers already living in Portugal also face uncertainty over renewing their residence permits under the revised regulations. While the government says the measures are intended to control immigration and improve living conditions, industry experts argue that foreign workers remain essential to supporting Portugal’s economy and addressing its housing shortage.

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