Building Portugal:
New Strategy for Housing
Great news for building and investment companies!
For the first time in decades, housing is being prioritized as an essential pillar of the Portuguese welfare state, alongside health, education, and the pension system.
Little or nothing has been done in the last 20 years and the housing supply crisis has fuelled a worrying division in the Portuguese society. It has increased social differences and constantly shifts the blame in order to find those responsible; It has turned tenants against landlords; tourism against cities; banks against developers.
A frustration have arrived as housing never really has been seen as an essential pillar in the construction of the Portuguese welfare state.
This shift in policy reflects a recognition of housing’s fundamental role in ensuring social stability and economic prosperity. By fostering collaboration between sector agents and increasing construction capacity, the government is paving the way for a more equitable and sustainable housing market.
The Portuguese government has recently announced a set of measures to tackle the housing crisis. With this “New Housing Strategy” the aims are to provide an urgent response to the difficulties in buying or renting a home, while offering many incentives and measures to; Return the Flexibility and Confidence to the rental marketCreation of the investment contract for built-to-rent and available-to-let
The plan “Construir Portugal: Nova Estratégia para a Habitação” aims to encourage the supply of housing, promote public housing, encourage youth housing and ensure housing accessibility. The initiative’s key measures, such as making 25,000 homes available under the Recovery and Resilience Plan and revising the Land Law, are designed to inject much-needed flexibility and confidence into the housing market. The introduction of the investment contract for built-to-rent and available-to-let, along with incentives like the semi-automatic legal system for utilizing vacant public properties, the Building Bonus, and state guarantees on credit for building cooperatives, are poised to significantly streamline housing development processes.
These measures and incentives are a significant boost for the entire rental housing market. By addressing the cumbersome bureaucracy and time delays that have plagued Portugal, the program facilitates easier applications and creates more favorable conditions for those looking to build and invest in rental properties.
In conclusion, the Portuguese government’s new housing strategy, “Construir Portugal: Nova Estratégia para a Habitação,” represents a critical step towards addressing the nation’s housing crisis. By aiming to increase housing supply, promote public housing, encourage youth housing, and ensure accessibility, the strategy addresses several long-standing issues that have exacerbated social divisions and hindered economic growth.
