Lisbon Mayoral Candidate Reaffirms Goal of 20% Public Housing, Targeting Vacant Properties

Lisbon's Housing Shake-Up: What a 20% Public Housing Goal Means for Investors

Foreign investors in Lisbon's property market should take note of a major policy proposal from mayoral candidate Alexandra Leitão, who is advocating for a significant expansion of public housing to 20% of the city's total stock. This ambitious plan, central to her campaign, could reshape investment calculations, particularly concerning vacant properties and future development opportunities in the Portuguese capital.

The proposal directly targets the housing affordability crisis, fueled in part by what Leitão calls "predatory tourism." For investors, the most critical element is the proposed tax hike on vacant properties, a measure designed to discourage speculation and bring more homes into the rental market.

This policy shift signals a more interventionist approach from a potential future city government. "The era of passively holding vacant properties in Lisbon without consequence may be coming to an end," warns a financial analyst. "Investors must now consider the carrying costs of an empty apartment, which could increase significantly under this proposal." The plan also includes using municipal land for new construction, including modular homes, which could alter supply dynamics in certain districts.

• Re-evaluate Hold Strategies: If you own or plan to buy property with the intention of leaving it vacant, you must calculate the potential impact of a higher IMI (Property Tax) on your returns.
• Explore Rental Opportunities: The push to penalize vacant homes makes the long-term rental market a more attractive and politically stable option for investment.
• Monitor Development Zones: The focus on new construction and rehabilitation offers opportunities for developers and investors aligned with the city's goal of increasing housing supply, especially through partnerships.
• Stay Politically Informed: The outcome of the upcoming municipal election will have a direct and lasting impact on real estate regulations in Lisbon.

Explore opportunities with realestate-lisbon.com.