The Portuguese Association of Real Estate Developers and Investors (APPII) considers the new European Affordable Housing Plan to represent a “historic opportunity” for Portugal, but the country will only succeed if it “accelerates profound reforms” in terms of licensing, taxation, urban planning and land use.

“Portugal risks failing to absorb available resources and worsening its position as one of the most unbalanced housing markets in Europe,” despite the Brussels plan creating a “unique window of financing, political pressure and strategic alignment,” warns APPII, in a note sent to ECO.

Overvaluation

The association highlights that Portugal emerges as one of the most critical member states because it has the highest overvaluation of housing prices in the EU, which reinforces the “urgency of transforming the European plan into a true engine of internal change.”

“The European Commission estimates that the EU needs around 650,000 new homes. If in Portugal we know that at least 150,000 homes are lacking, we can understand the impact of our reality. We are talking about a large-scale response, which requires strategic planning, regulatory predictability and effective mobilization of private investment,” says APPII CEO Manuel Maria Gonçalves.

“One cannot speak of speculation in the sale of new homes.”

The European plan also includes a study on real estate speculation in Europe, which will begin in 2026. For the leader of the national association of developers, this scenario does not apply to operations involving new properties. “Today, in the sale of new homes, one cannot speak of speculation. In order for us to have more affordable housing, the State must step out of the final cost equation and become an active part of the solution,” argues Manuel Maria Gonçalves.

Emergency

Another topic highlighted by APPII is the recognition of housing as a European emergency. In the association’s view, this status validates the position it has defended for more than a decade: the housing problem is solved mainly with more supply, built more quickly and at lower costs. “It is significant that the European Commission has taken this position so clearly. In Portugal, we could and should have moved forward sooner,” says the CEO.

APPII also welcomes the emphasis on supporting young people, students, and more vulnerable populations through innovative solutions such as co-living or strengthening the supply of university residences, because it characterizes as “essential” the creation of a clear legal framework for these models, distinct from local accommodation, that guarantees legal security, urban planning compatibility, and respect for condominium regulations.

“It is urgent to implement reductions in licensing times, taxation and construction costs, as this is the only way to increase supply and thus reduce house prices. This will only be possible with a national effort and unity, with all players involved,” concludes the CEO of APPII.