Lisbon Property Owners Association Endorses EU Housing Report, Criticizes National Policies
The Lisbon Property Owners' Association (ALP) has voiced its support for a recent report from the European Parliament's Special Committee on the Housing Crisis, while simultaneously criticizing the Portuguese government's response to the issue. The association claims that while Brussels is proposing structural solutions, the national government is implementing "piecemeal measures of merely residual impact." In a public statement, the ALP commended the European Parliament's document for introducing a new framework for housing policy within the EU, one that it says reflects many of its long-held positions.
The ALP expressed concern over the Portuguese government's current strategies, citing the sale of symbolic public assets like the former headquarters of the Council of Ministers as an example of an ineffective measure. The association argues that such actions are "incapable of structurally altering the market." To support its argument, the ALP noted that the state currently owns only about 2% of the national housing stock. It calculated that increasing this share to 5%, which would require adding 180,000 homes, would necessitate an investment of over €27 billion—an amount double the country's annual health budget.
The association highlighted that the European report incorporates several proposals championed by the International Union of Property Owners (UIPI), an organization in which the ALP holds a vice-presidency. Among the most significant points, the ALP noted the report's emphasis on increasing housing supply through simplified licensing and reduced bureaucracy. It also pointed to the report's warnings about the detrimental effects of rent freezes and excessive controls, which are said to stifle investment and mobility. Furthermore, the document denounces the heavy tax burden on housing and instead advocates for incentives for rehabilitation, construction, and the rental market.
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The ALP stated that it "now sees its concerns reflected in a structuring document of the European Parliament, which places the protection of property rights and the need for market-based solutions at the center of the debate." The association, representing property owners, firmly believes that the solution to the housing crisis does not lie in "statist illusions or palliative measures." Instead, it calls for building confidence among private property owners to encourage them to bring their properties to the market without the fear of rent freezes, new taxes, or confiscatory measures. According to the ALP, "Only a stable, predictable, and investment-friendly framework will unlock the supply that the country needs."
This position underscores a significant debate within Portugal's real estate sector regarding the balance between state intervention and market-led growth as the country seeks to address its housing challenges.
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