Real Estate Revolution Needed: CBRE Director Calls for Bold Political Action Now!

"CBRE Director Urges Immediate Political Action for Real Estate Reform!"

Francisco Horta e Costa emphasizes the need for political collaboration to address Portugal's housing issues, including licensing, costs, and supply shortages.

Miguel Sousa28 January 2025Last Update : 2 days ago

“Setor da habitação precisa de uma revolução e de coragem política”, diz managing director da CBRE

jornaleconomico.sapo.pt

On January 28, 2025, Francisco Horta e Costa emphasized that the housing sector in Portugal needs a revolution and political courage to tackle ongoing challenges. With issues like licensing delays, rising home prices, and high construction costs, a unified response from all political parties is crucial. How can Portugal overcome these obstacles to ensure affordable housing for its citizens?

6 Key Takeaways

Cross-party mobilization needed for housing issues
Licensing delays hinder investment in Lisbon
Simplification of processes essential for profitability
State should collaborate with private sector
VAT reduction could boost housing supply
Public housing investment remains critically low

Fast Answer: Francisco Horta e Costa highlights the urgent need for a political overhaul in Portugal’s housing sector. He stresses the importance of simplifying licensing processes and collaborating with the private sector to increase housing supply and affordability.

Portugal’s Housing Crisis: What Needs to Change for Affordable Living?

Can Portugal’s housing crisis be resolved with effective political action? Experts believe that a collaborative approach involving all political parties is essential to address the persistent issues affecting the housing market. The challenges include lengthy licensing processes, high construction costs, and a lack of available homes. These factors contribute to the rising prices that many citizens struggle to afford.

Warning! The housing situation in Portugal is critical, and it mirrors challenges faced in the U.S. market. As demand continues to outpace supply, understanding these dynamics can help inform solutions in other regions.

Key Issues Facing Portugal’s Housing Sector and Potential Solutions

Horta e Costa identifies several key issues that need immediate attention to improve the housing landscape:

Licensing delays hinder construction and investment.
High construction costs make homes unaffordable for many.
Insufficient collaboration between the state and private developers.
Need for a reduction in VAT on housing to stimulate the market.

Understanding the Licensing Challenges in Portugal’s Housing Market

Licensing is a significant hurdle in Portugal’s housing sector. Some municipalities process applications quickly, while others, like Lisbon, face long delays. This inconsistency discourages investors and slows down the construction of much-needed homes. Horta e Costa argues that simplifying these processes is vital for improving market efficiency.

The Role of Private Sector Collaboration in Housing Development

Horta e Costa emphasizes that the government should not be the sole provider of housing. Instead, it should work alongside private developers who have the resources and motivation to build. By fostering a partnership, Portugal can increase the housing supply more rapidly and effectively.

Potential Impact of VAT Reduction on Housing Affordability

One proposed solution is reducing the VAT on housing from 23% to 6%. Horta e Costa believes this could significantly lower construction costs, making homes more affordable. He cites the government’s previous actions in other sectors, suggesting that similar initiatives could benefit the housing market.

In conclusion, addressing Portugal’s housing crisis requires a multifaceted approach involving political will, streamlined processes, and collaboration with the private sector. By taking these steps, the country can work towards a more affordable and accessible housing market for all its citizens.