Portugal Crumbles as Century-Old Rent Controls Choke Investment

Isabel Palma has been trying to sell a seven-story building in Lisbon’s business district for six years. It doesn’t help that the property isn’t generating enough income to pay for maintenance and she can’t raise rents.

The six remaining tenants, including law firms and a hostel, have had their rents frozen for years or simply don’t pay anymore because they don’t fear eviction, according to the landlady, whose family has owned the 1,610 square-meter (17,330 square-foot) property since 1909. She gets a total of 1,100 euros ($1,490) a month in rent.