Four Years Under Moedas: An Analysis of Lisbon's Transformation and Future for Investors

A Review of Four Years of Governance in Lisbon Under Carlos Moedas It has been four years since the 2021 municipal elections produced a surprise result in Li...

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A Review of Four Years of Governance in Lisbon Under Carlos Moedas

It has been four years since the 2021 municipal elections produced a surprise result in Lisbon, when Carlos Moedas and the 'Novos Tempos' coalition defeated a 14-year tenure of socialist governance. This victory, which few political analysts had predicted, ushered in a new era of leadership for the Portuguese capital. Over the past term, Mayor Moedas has implemented a series of policies that have reshaped the city's approach to housing, mobility, and economic development.

The initial reception to the new administration was marked by some skepticism, particularly from those who feared a reversal of environmental and green mobility initiatives. However, Mayor Moedas clarified that his administration's approach would be one of gradual, negotiated transition rather than abrupt prohibitions. A key policy change exemplifying this was the 50% price reduction for EMEL on-street parking and the introduction of the first 20 minutes free, a measure intended to provide greater flexibility for citizens.

The administration's performance is supported by several key metrics. Free public transport has been extended to over 105,000 young people and senior citizens. The city has also enhanced its economic profile by attracting 82 technology firms and 16 unicorn companies, which has led to the creation of more than 16,000 jobs. In the housing sector, the municipality delivered over 2,700 keys to new homes and provided rental payment support to 1,200 families. This was described as the largest housing investment in the city's history and was accompanied by the elimination of the municipal income tax (IRS), which reduced the financial burden on households.

The administration's progress was at times impeded by political opposition in the Municipal Assembly. Lacking an absolute majority, the governing coalition faced blockades that delayed certain projects. Despite these challenges, the coalition, now named 'Por Ti, Lisboa', has outlined an ambitious agenda for the future. This includes initiating the largest housing project in the city's history on 250 hectares of land in areas like Quinta do Ferro, Vale de Chelas, and Vale de Santo António, which had been undeveloped for decades.

Future plans also focus on public safety, with a commitment to reinforce the Municipal Police and bring back night watchmen. A significant and complex challenge the administration aims to tackle is the housing pressure in historic neighborhoods. While recognizing the economic benefits of tourism, the stated goal is to increase the availability of affordable housing in central areas to enable younger generations to live in the neighborhoods where they grew up. This policy could have significant implications for the local property market.

Further proposals include the restructuring of urban hygiene services, modernizing the Carris public transport fleet with cleaner vehicles and additional routes, and reducing bureaucracy in municipal services to make them more citizen-friendly. The past four years have demonstrated a different approach to municipal governance in Lisbon, and the results of these policies will continue to shape the city's development trajectory.

Understand policy impacts on your Portugal property plans at realestate-lisbon.com.

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