The President of the Portuguese Association of Property Developers and Investors (APPII), Hugo Santos Ferreira, has emphasized that increasing the housing supply is crucial to addressing the current access crisis in the market. He notes that between 2015 and 2024, Portugal licensed 21.9 dwellings per 1,000 inhabitants, significantly lower than the European average of 49.4 during the same period. This shortage has exacerbated the situation, making it challenging for potential buyers to access the market.
According to Hugo Santos Ferreira, there are three primary obstacles hindering the launch of new housing supply: cost, time, and risk. To address these challenges, he proposes eliminating outdated requirements, such as minimum area stipulations in the Portuguese Urban Planning Regulation (RGEU). These requirements, he argues, impose unnecessary costs and inflexibility, as they do not account for the evolving needs of families. By replacing these requirements with a maximum usable area per floor, developers can create more flexible and adaptable housing.
Hugo Santos Ferreira also advocates for the abolition of mandatory parking requirements per dwelling, as defined in municipal master plans. He believes that this requirement is no longer necessary, given the emphasis on reducing car usage in urban areas. Instead, he suggests that municipalities could opt for traffic and mobility studies to determine parking needs. Additionally, he recommends eliminating obsolete technical requirements, such as the installation of coaxial cables and copper wiring for telecommunications.
In the long term, Hugo Santos Ferreira proposes the implementation of a national land bank program, which would provide land ready for development, reducing the risk of licensing and accelerating the construction process. He cites Madrid's successful experience with this approach, which has led to the delivery of hundreds of thousands of homes. This program would enable investors to develop housing projects more efficiently, addressing the shortage of available land.
The APPII president also suggests that a transparency platform, monitoring the benefits and competitiveness of each municipality for investment, would be beneficial for real estate developers. This platform would provide a ranking of municipalities based on their efficiency and friendliness towards investment, helping developers make informed decisions. Furthermore, he emphasizes the need to promote modular and industrialized construction to reduce costs.
Industrialized construction can significantly lower costs, making housing more affordable for the middle class. Hugo Santos Ferreira notes that current construction costs in Portugal, ranging from 2,000 to 2,500 euros per square meter, make it challenging to sell homes below 4,000 euros per square meter. By reducing costs to around 1,000 euros per square meter, developers can offer more affordable housing options.
In conclusion, Hugo Santos Ferreira stresses that simplifying requirements, defining minimum quality standards, and promoting large-scale construction are essential to addressing Portugal's housing crisis. He believes that industrialized construction should become the norm, rather than the exception, to increase the housing supply and make it more affordable for potential buyers.
Key points
- Eliminating obsolete requirements can help reduce housing costs and increase the supply of available homes.
- A national land bank program can provide land ready for development, reducing the risk of licensing and accelerating the construction process.
- Promoting industrialized construction can lower costs and make housing more affordable for the middle class.
