The recent review of the Land Law raises questions about its effectiveness in housing, with experts suggesting more effective solutions.
The housing crisis has been one of the biggest challenges faced in Portugal, with high prices and difficulties in accessing affordable housing. Recent changes to the Land Law aim to facilitate the construction of new developments and increase the housing supply. However, experts warn that without complementary measures, these changes may not have the desired impact. In this context, several solutions have been suggested, from the mandatory inclusion of affordable housing in new projects to the regulation of the rental market and restrictions on purchases by foreigners.
Inclusion of Affordable Housing in New Projects Ana Rodrigues, an environmental and urban planning specialist, warns that the housing crisis is complex and cannot be resolved with a single measure. One of the most effective solutions, according to the expert, would be to make it mandatory to integrate affordable and social housing into new large-scale real estate developments. This practice could ensure a more equitable distribution of housing supply.
Restriction on the Purchase of Real Estate by Foreigners Another measure advocated is the restriction on the purchase of real estate by foreigners without permanent residence. This policy has been applied in several countries, such as Canada and New Zealand, with the intention of reducing pressure on prices and avoiding international speculation. Lisbon and Porto have seen a significant increase in the volume of foreign investment, which, according to Ana Rodrigues, has contributed to the rise in housing prices and the exclusion of the local population from the real estate market.
Regulation of Short-Term Rentals Regulation of short-term rentals is also highlighted as an essential measure to increase the supply of affordable housing. The growth of platforms like Airbnb has been one of the factors reducing the availability of properties for long-term rental, worsening the housing crisis.
Tax and Financial Incentives for Construction Bento Aires, an expert in urban management, suggests that the review of the Land Law must be accompanied by effective management of urbanization processes. He advocates that municipalities implement operational plans that promote a balance between urban expansion and the maintenance of green spaces. To this end, it considers it essential to create tax and financial incentives, including the reduction of ICMS on construction and the review of municipal rates, in order to make housing production more accessible.
Reference to European Models Leonardo Costa, a housing researcher, reinforces the importance of measures that take good European practices as a reference. He points out that many European Union countries have implemented cooperative housing models and public programs for the middle class, which have helped stabilize market prices.
Another example cited is the approach taken by cities such as Barcelona, where landlords are encouraged to rent out vacant properties rather than keep them vacant. This policy seeks to ensure that the existing housing stock is fully utilized to meet the needs of the resident population.
The Soil Law may represent progress, but experts warn that, without complementary measures, its impact may be limited. Affordable housing requires an integrated approach, including market regulation, tax incentives and effective urban policies to ensure a balance between supply and demand.