While the European Union (EU) does not have direct legislative authority over housing policy, it plays an important role by supporting Member States through project funding and the promotion of best practices.

In 2018, Portugal introduced the New Generation of Housing Policies (NGPH) with the aim of addressing the growing imbalance between housing demand—particularly among younger generations—and the supply of homes available for purchase or rent.

However, the figures are unequivocal: residential property prices have risen significantly over recent years. It is now evident that this is not a temporary crisis. To meet today's pressing housing needs, it is time to adopt a new housing policy based on innovative approaches and forward-looking solutions.

Expanding the supply of affordable and diverse housing has become essential. This includes not only social housing but also controlled-cost housing developments and rental policies that provide Portuguese families and young people with genuine opportunities to access decent, affordable homes.

The housing shortage is also having a negative impact on economic development. Many companies are struggling to attract and retain talent or facilitate employee mobility due to the limited availability of suitable housing.

It is therefore essential to design a new strategy capable of responding to current challenges while building a fairer and more sustainable future. Land-use planning should be reviewed to release additional land specifically designated for permanent residential housing.

To encourage private developers to invest in new residential projects, an attractive fiscal framework should be introduced, including exemptions from certain taxes and fees, alongside other investment incentives. At the same time, legislation should be updated to make the rental market a more attractive and balanced option for both landlords and tenants.

Garvetur assists you throughout the entire purchase process. Please contact 00351 289 322 488 or info@garvetur.pt