I am also Portuguese, have lived in 3 other European countries (all of them economically richer) and am still living abroad. If I compare the housing quality of all these countries I disagree Portugal is worse. I can easily find much worse flats listed abroad than in Portugal. I remember seeing unimaginable things like 20 sq m studio with no bathroom (just a plastic separating the rooms) in central London for the rental price of a 1 bed in Porto.
Portuguese housing market, like potentially every other market, is smaller than the richer countries, but that doesn't mean house quality is "shit". I looked at idealista a few weeks ago and there are luxury houses being sold for 1M+ in the north (probably even more in the South), mostly obviously targeted to rich foreigners.