“Mais Habitação” - Portugal’s New Housing Measures
“Mais Habitação” - Portugal’s new housing measures will produce severe effects that are contrary to those desired!!!… The cities of Lisbon and Porto are no longer the drivers of housing price appreciation, because there are other areas that are obtaining a value of 30%!!!… The More Housing package, which covers tax changes and changes in the rental markets, “AL” (Local Accommodation) and vacant properties, will produce severe effects that are contrary to those desired… THE PROBLEM IS THE LACK OF SUPLLY!!!… Prices rise and rents rise due to lack of supply. Owners feel they have the ability to raise prices as a result of the lack of supply. What needs to be done is to take away this capacity from owners, promoting the offer with more investment in construction and leasing... The metropolitan areas of Lisbon and Porto “ceased to be the drivers of appreciation” in house prices, because “there are other cities appreciating at 30%”, compared to the 5-7% of the previous ones. However, I will rule out talking about a real estate bubble or market devaluation, because the level of debt remains lower than in the past, despite the rise in interest rates.
Regarding the measures announced this past Thursday by the Government, I characterize them as positive and welcome, especially the rent subsidy and interest subsidies. But also, focusing on housing credit, I don’t imagine the volume will be very significant at the end of the day... I am totally against the brake on rent increases, because I believe it prevents those outside the rental market from being able to rent a house… It could even be an effective measure that would be accepted, but the truth is that it will only protect those within the market already, limiting supply and promoting an increase in values for those outside!!!… In my opinion, it is necessary to reduce the tax burden – VAT (Value Added Tax) on construction – and to review the IMI (Property Tax) and IMT (Property Transfer Tax) tables for the young population… The housing problem is not who is a tenant or owner. It's in those who want to enter the market and will not be able to do so!!! Feel free to schedule a call at your convenience on our calendar through Calendly, and let’s see where our team and I can add value to you moving or additionally investing in Portugal. Link to schedule call on Calendly
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