Lisbon, Dec. 22, 2025 (Lusa) - The Portuguese Association of Real Estate Developers and Investors (APPII) warns that the resources of the European housing plan can only be used if Portugal moves forward with "structural reforms in land, licensing and taxation," according to a statement released on Monday.
Otherwise, "Portugal runs the risk of not being able to absorb the available resources and worsening its position as one of the most unbalanced housing markets in Europe".
Considering that the European plan, announced on 16 December, is a "historic opportunity" and that it "creates a unique window of financing, political pressure and strategic alignment", the APPII association advocates accelerating measures such as applying 6% VAT to affordable housing and simplifying and standardising licensing through single digital platforms and predictable deadlines, allowing developers to move forward with projects in cases where there is "tacit approval".
The association's management also calls for long-term planning through the launch of a housing strategy "independent of political cycles" and the provision of "public land for affordable housing projects".
For the APPII association, the recognition of housing as a "European emergency" means acknowledging that the problem "can be solved above all by increasing supply, building more quickly and at lower costs," the statement said.
"In Portugal, we could and should have moved forward much earlier. The European diagnosis coincides entirely with what APPII has been advocating for years: we need to build more and faster," said Manuel Maria Gonçalves, executive president (CEO) of the association, quoted in the statement.
"The European Commission estimates that the European Union needs around 650,000 new homes. If we know that Portugal is short of at least 150,000 homes, we can understand the impact of our reality," he added.
The APPII management is willing to continue working to find solutions to the housing problem, now focusing on the implementation of the European plan, through participation "in national working groups" to implement the measures and "structure public-private partnerships" with the government and local authorities.
The European Commission estimates that housing prices in Portugal are overvalued by 25%, identifying it as the most overvalued market in the European Union (EU).
House prices in the EU have risen by an average of up to 60% since 2015, with some member states recording increases of over 200%, while rents have risen by an average of 20%.
However, residential building permits have fallen by around 22% since 2011.
Added to this is the pressure exerted by short-term rental accommodation, which in some parts of the EU accounts for up to 20% of the housing stock, having grown by more than 90% in the last 10 years.
CT/AYLS // AYLS
Lusa
