Portugal's Bold €1.3 Billion Push for Affordable Housing and State Property Reform

Prime Minister Announces Major Housing Initiatives

In a significant move to address Portugal's housing crisis, Prime Minister Luís Montenegro has unveiled a comprehensive package aimed at making homes more accessible, particularly for young people. The announcement was made during the closing session of the 21st edition of the PSD Summer University in Castelo de Vide, Portalegre, on Sunday.

Key Measures to Boost Affordable Housing

Montenegro emphasized that the government is committed to a youth-friendly fiscal policy and promised that the discussion for next year's State Budget will be straightforward. As a first step, he revealed that a credit line of an additional €1.3 billion will be signed with the European Investment Bank (EIB) this Thursday, specifically for affordable housing projects.

Maximizing State Property Usage

The government is taking a hard stance on underutilized state property. Montenegro declared that all public entities will be given a deadline to justify why their assets are not being used. "We're fooling each other here, and that's going to end," he stated. Properties without valid justifications will be transferred to Estamo, the state real estate management company, for potential construction, rental, sale, or other forms of utilization to generate revenue.

Digital Innovation and Organizational Clarity

A third initiative involves creating a single digital file that consolidates all certified property documents. This system aims to eventually integrate property matrices from tax authorities and registries, simplifying processes for citizens and reducing bureaucratic hurdles.

Additionally, the government plans to clearly define roles in the housing sector. The IHRU (Institute for Housing and Urban Rehabilitation) will take on coordination, regulation, and planning responsibilities, while the Portuguese Development Bank will handle financing for housing operations. Local municipalities will be empowered with the technical and financial means to manage state housing stock effectively.

Long-Term Commitment and Patience Required

Montenegro acknowledged the enormity of the housing challenge but assured that it will be overcome, though it may take several years. He called for patience from critics, highlighting past failures and the need for sustained effort. The government also intends to negotiate a guarantee line for the 133,000 public housing units outlined in local strategies, criticizing previous socialist administrations for inadequate support.

This multi-faceted approach underscores a determined effort to tackle housing affordability through financial investment, property optimization, digital modernization, and structural reforms.