As the supply of new housing units remains limited, the demand continues to drive up prices, impacting affordability for many potential buyers. Addressing this imbalance between supply and demand is crucial for stabilizing the market and making housing more accessible.

Understanding these dynamics is essential for stakeholders in the real estate sector and for anyone considering investment opportunities in Portugal.

Government Initiatives to Boost Housing Supply

In response to the housing supply challenges, the Portuguese government has introduced several measures under the “Mais Habitação” (More Housing) package. This comprehensive plan includes 30 measures aimed at increasing new housing supply and improving affordability.

Key initiatives within this package include the reduction of VAT on residential projects, which lowers the overall cost of construction and incentivizes developers to undertake new projects. Additionally, there is an exemption from property taxes (IMT) for first-time buyers up to the age of 35, making it easier for young families and individuals to enter the housing market.

The package also emphasizes the simplification of construction and development processes, reducing bureaucratic hurdles and speeding up project approvals. Furthermore, the government is enhancing incentives for long-term rentals to increase the availability of rental properties and provide more stable housing options for residents.

Significant steps are being taken to address the housing supply issues in Portugal. These initiatives aim to balance the market and provide a more optimistic outlook for future developments in the real estate sector.

Upcoming GRI Portugal Event: Addressing Housing Market Challenges

Further enhancing these efforts, experts are set to gather for the annual GRI Portugal event in the next few days. The GRI (Global Real Estate Institute) is renowned for facilitating high-level discussions and networking opportunities within the real estate industry.

This event will reunite investors, developers, and municipalities to openly discuss potential solutions to address the housing shortage and challenges. EQTY is proud to have been invited to be part of this panel and will contribute to these relevant discussions.

We look forward to sharing the insights from the event, raising awareness, and fostering discussions to create a more sustainable and accessible housing market in Portugal.

For more detailed insights and updates on these initiatives, subscribe to our LinkedIn newsletter HERE.