Government to Sell State Properties and Launch PPPs for Affordable Housing
The Government is set to approve the sale of approximately ten state-owned properties, a move aimed at channeling the resulting funds into housing policies. Among the properties slated for sale are the historic former headquarters of the Presidency of the Council of Ministers and several buildings previously used by the Ministry of Education. The decision will be formalized this Thursday during a meeting of the Council of Ministers, which will also see the approval of a new procedure for launching public-private partnerships (PPPs) for affordable rentals.
This PPP initiative will encompass around 15 state-owned properties. According to the plan reported by the newspaper Público, private entities will be invited to invest in and manage these properties, converting them into affordable rental housing under a set of rules pre-defined by the government. This strategy is designed to accelerate the availability of affordable housing by leveraging private investment and operational expertise, addressing a critical shortage in the market.
The policy objectives are clear: to increase the housing supply and provide relief to a rental market under severe pressure. The funds raised from the property sales are expected to provide a significant financial boost to the national housing budget, enabling the government to either build new public housing or subsidize other affordability programs. The selection of these initial properties for sale and for the PPP program is seen as a first step in a wider strategy to make better use of the state's extensive but often underutilized real estate portfolio.
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These measures are part of a broader legislative push by the executive, led by Luís Montenegro, to reform the housing sector. As previously reported by ECO, the government intends to introduce greater flexibility into the rental laws to stimulate the market and combat the chronic lack of supply that has driven prices to record highs. In the short term, officials are evaluating the possibility of eliminating the 2% ceiling on rent increases for new rental agreements, a measure that has been criticized for stifling investment in the rental sector.
Additionally, the government is considering reforms to streamline the eviction process. This is intended to provide landlords with greater security and confidence, encouraging them to place more properties on the long-term rental market rather than opting for short-term tourist lets or leaving them vacant. The current legal framework is often described by property owners as excessively lengthy and complex, discouraging investment.
The combination of selling state assets, launching PPPs, and reforming rental legislation represents a multi-pronged approach to tackling one of the most pressing social and economic issues in Portugal today. The government's rationale is that by intervening on both the supply and regulatory fronts, it can create a more dynamic and accessible housing market for its citizens. The impact of these policies will be closely watched by economists and industry stakeholders, as they have the potential to significantly reshape the real estate landscape in the coming years. Understand policy impacts on your Portugal property plans at realestate-lisbon.com.