Proposal Calls for a Nationwide Housing Construction Plan Leveraging Public-Private Partnerships

In a recent editorial, the writer outlines a comprehensive national housing strategy aimed at reversing Portugal’s chronic shortage of new homes. Citing decades of falling construction output and heightened demand from young people, immigrants and seniors, he recommends four pillars: (1) public-private partnerships that lease state-owned land for 50-75 years, allowing private builders to deliver affordable units with price caps and eventual tenant purchase options; (2) co-investment funds where the state holds a minority stake and shares risk with long-term institutional investors; (3) stable fiscal incentives, including the existing 6 % reduced VAT rate for qualifying housing projects and long-term lease contracts to lower financing costs; and (4) “housing free zones” that streamline licensing to cut delays. He highlights that foreign direct investment in Portugal hit €2.1 billion in the first quarter of 2026, of which €800 million was in real estate, underscoring the country’s capacity to attract capital for such initiatives.