Real estate in Portugal: needed housing in short supply, warn developers

The real estate market in Portugal has a problem that everyone knows and that has become a top priority for the government. The next step will be to speed up licensing processes, increase the supply of housing, including for the middle class, and boost the rental market. These were some of the measures demanded by real estate players in Portugal in recent years to remedy a situation that nevertheless continues to deteriorate.

What has already been done and what more needs to be done in real estate development? Idealista News provides market analysis and a voice for those who invest in and are responsible for developing residential projects that, although becoming reality with delays, are becoming increasingly expensive - both for builders and real estate developers and for those wishing to buy homes. Here are the results.

Housing is therefore an increasingly important topic for the government, which has already announced a new law in this area - it will be presented at the Council of Ministers meeting on February 16 - and created a ministry dedicated to the subject. The Prime Minister has even tentatively stated that the new document provides for more land to build homes and tax breaks for developers, with the main goal being for the government to start working with the private sector to offer more housing on the market.

Ideas to remember:

• There is a need to increase supply in all segments of the housing market, especially for the middle class;
• licensing - need to speed up processes;
• rental market development - a long-standing and relevant goal;
affordable housing.

Hugo Santos Ferreira, one of the industry's most active representatives, is convinced that "Portugal's main problem is housing". He notes that this problem "has continued to worsen in recent years due to a lack of concrete measures." "There are not enough concrete measures," warns the chairman of the Portuguese Real Estate and Investors Association (APPII), noting that the problems have been identified. "Licensing processes need to be expedited, high tax burdens and, in some cases, double taxation need to be addressed, but above all, mechanisms need to be put in place to develop affordable housing and the rental market." According to the specialist, only through the joint efforts of all stakeholders will it be possible to "offer more housing on the market" in the near future, which probably won't happen this year. "The industry's efforts should focus on providing affordable housing for the middle class and also on sustainability, we cannot wait any longer," he added.