Property Abroad
Blog
How many vacant properties does the state have? Private individuals are watching closely.

How many vacant properties does the state have? Private individuals are watching closely.

How many vacant properties does the state have? Private individuals are watching closely.

One of the measures aimed at solving the housing problem introduced in the 'More Housing' package has generated much discussion. It concerns the compulsory rental of unoccupied private homes by the state. Many in the industry and civil society have criticized the government for wanting to force private owners to rent out their properties without leading by example.

The truth is that no one knows how much state real estate there is in Portugal. The counting of public real estate has been dragging on for more than a decade. In the meantime, several private investors have expressed interest in vacant state real estate, such as hospitals and barracks, which have the potential to be built''housing in the central districts of Lisbon and Porto.

When presenting the 'More Housing' package, which is under public consultation until March 10, Antonio Costa announced his intention to adopt 'forced renting' of empty houses, thus complementing already existing measures to tighten tax regulation for such properties.

The idea is for the state or municipality to rent a house from a private owner and then sublet it to families, thereby increasing the supply of housing on the rental market. In this case, the socialist government proposes to charge families for renting the house and pay the owner the corresponding rent (from which the cost of reconstruction, if any, would be deducted''available).

The inventory of state-owned real estate has not yet been carried out... A host of market experts and opposition parties have spoken out against the measure, saying it is an "attack on private property." Others also point the finger at the government, saying it is not setting an example in renovating state-owned real estate to provide more rental housing. A movement has emerged on social media that seeks to identify vacant government properties across the country.

An example are two buildings in Loures, which have been empty for more than 15 years and which the municipality of that city purchased for 2 million euros in 2017, reported television station SIC Notícias.

Recommended real estate
Buy in Spain for 415000€

Sale cottage in Lanzo d'Intelvi 440 151,00 $

3 Bedrooms

2 Bathrooms

130 м²

Buy in Portugal for 4500000€

Sale house in Fara with sea view 4 772 727,00 $

5 Bedrooms

306 м²

Buy in Portugal for 366250€

Sale flat in Setubal 388 446,00 $

49 м²

Buy in Portugal for 2076994£

Sale house in Albufeira 2 664 426,00 $

6 Bedrooms

6 Bathrooms

375 м²

Buy in Portugal for 2850000€

Sale house in Cascais 3 022 727,00 $

4 Bedrooms

5 Bathrooms

404 м²

Buy in Spain for 402900€

Sale flat in Cremona 427 318,00 $

3 Bedrooms

2 Bathrooms

135 м²

Only now the municipality of Loures will start work on the''renovation of these buildings to provide 45 accessible rental apartments, 5 residential units for people with disabilities and 15 beds in temporary emergency accommodation. The work will cost 15 million euros (part-funded by the PRR) and will only take two years to complete.

How many properties does the state have? And how many of them are vacant and could be redeveloped? No one knows. The counting of public real estate has been delayed for more than a decade in Portugal, even after Decree No. 280/2007 required a "complete inventory of publicly owned property". The Ministry of Finance, responsible for coordinating the inventory, does not answer the question whether it will be possible to know how many''property has the state, reports Expresso.

The Ministry of Housing, however, says the Institute of Housing and Urban Planning (IHRU) has more than three thousand residential properties in the pipeline or under construction, as well as more than a thousand vacant or affordable properties that could become new housing available for rent, reports the publication.

Private investors are interested in government propertiesWhile the exact number of state property buildings is unknown, the fact is that several properties have already been identified by ordinance as having potential for housing and affordable rental development (many are already being remodeled and restored). And a host of developers and investors''(DRM) on Frans Avenue;

  • The former headquarters of the Ultramarino National Bank on Aliyadush;
  • The Military Records Building in Massarelos.
  • It is important to note that the Liberal Initiative (IL) has recently proposed a project based on the ability of the state to provide unoccupied public property to private individuals. This property would then be adapted into housing and rented out on affordable terms for five years, if not its own permanent residence.

    Comment