"What does the Real Estate Sector expect from the new government measures presented for housing?", an opinion from our COO for "Vida Imobiliária"

2023 is proving to be a year of uncertainty for the real estate sector, namely due to inflation and rising interest rates. In addition to the factors mentioned above, there are the measures of the Mais Habitação (More Housing) program, most of which do not solve the largest problem we are facing: a lack of housing production. At a time when the Government should be promoting incentives to increase production and attract foreign investment, it presents a package that undermines investor confidence and increases production costs, resulting in a decrease in the production of housing for sale and a reduction of supply for the rental market.

One positive measure is the package to simplify licensing processes, but which is not yet known in enough detail to assess its real impact.

Alternatively, investment incentives should be created to increase the housing stock in Portugal by reducing and/or eliminating tax costs and licensing timelines, as well as building legal and fiscal confidence to drive the rental market.