Source: Freepik Author: Redaction The National Institute of Statistics (INE) advanced this Tuesday with data on the median values of bank valuation in housing, which increased in February, 10 € compared to the previous month . The value is thus fixed at 1,560 euros per square meter, with an annual rate of change of 5.5%, compared to 4.4% recorded in January. This is an increase of 0.6% , with the number of bank valuations around 28.3 thousand. Highlighted is the Autonomous Region of the Azores, with the steepest increase compared to the previous month, of 2.6% . The remaining regions also showed positive variations, however, the Autonomous Region of Madeira was the only one with zero variation and, compared to February 2023, the median value of the evaluations increased 5.5%. It was also in the Autonomous Region of Madeira that the variation was more intense, 19.1%, without any decrease. The INE bulletin also adds that in February, the median value of the bank valuation of apartments was 1,741 euros per square meter , increasing 4.8% compared to the same month last year, with the most pronounced values occurring in Greater Lisbon and the Algarve . In the Centre, on the other hand, the lowest value was recorded. Read: Less residents in Portugal bought a house in 2023 , More and more banks are partners of credit intermediaries
Source: Freepik Author: Redaction This Friday, 8 March, Eurostat revealed its estimates for economic growth in the Eurozone and the European Union, which will have grown by just 0.4% in 2023 compared to the 3.4% recorded in 2022 . This is a downward revision compared to the initial estimate, which pointed to a rise of 0.5 per cent. In quarterly terms, GDP (Gross Domestic Product) was stable in the fourth quarter of 2023, both in the Euro Zone and in the European Union, compared to the previous quarter, and Portugal was the fifth country with the highest growth in the EU (fourth in the Euro Zone), according to Eurostat. In the last quarter of the year, the Portuguese economy grew by 0.8 per cent , behind Latvia, which also grew by 0.8 per cent, Slovenia, which grew by 1.1 per cent, Croatia, which grew by +.13 per cent, and Denmark, which grew by +2 per cent. On the other hand, the countries with the biggest decreases were Ireland, with -3.4 per cent, Estonia and Finland, both with -0.7 per cent. Number of people in employment increased The European statistical office also revealed data on employment, with the number of people employed increasing by 0.3 per cent in the Eurozone and 0.2 per cent in the European Union during the fourth quarter of 2023 compared to the previous quarter. In Portugal, on the other hand, employment fell by 0.1 per cent in the last quarter of the year compared to the same period last year. Discover other topics in SUPERCASA Notícias
Source: Freepik Author: Redaction Families facing financial difficulties can bring forward the redemption of their savings in retirement savings plans (PPR), education savings plans (PPE) and education savings plans (PPR/E) to pay off housing loans. However, only the amount saved up to a certain date is exempt from penalties. The understanding on this issue is outlined in an internal document from the Tax and Customs Authority (AT), signed by the deputy director-general responsible for income tax. This document, based on a government order, aims to clarify doubts related to the exceptional refund regime, especially in relation to the eligibility period for redemptions. With this restriction, it becomes unfeasible for a taxpayer to top up a PPR in order to enjoy IRS tax benefits and then redeem the amount early without incurring penalties. Did you like this topic? Read also: More families opt for mixed rates on home loans
Source: Freepik Author: Redaction The parish of Lordelo do Ouro, in the municipality of Porto, is going to have a new urban project aimed at building 291 new homes for affordable rent , after the Porto Municipal Assembly approved the transfer of a plot of municipal land where the project will take place. With an area of more than 45,000 meters , this project involves an investment of more than 64 million euros , and the allotment process was submitted for public consultation at the beginning of December. According to the information made public by the municipality, the divestment of the municipal land will allow for the restructuring of the urban fabric and the consolidation of the relationship between the buildings and the existing public space , as there are several housing shortages in the city. Read more: Coimbra wants to attract more technological investment , Construction helped mitigate the effects of inflation
Source: Freepik Author: Redaction All parties seek to achieve the same objectives: to increase supply and make purchase and rental prices more affordable. However, it is the approach to achieving these goals that sets them apart. The main differences lie between the left-wing and right-wing spectrums, with the left-wing parties singling out the economic growth strategy based on tourism, local accommodation, gold visas and the application of the IRS minimum for residents as the causes of the housing crisis. On the other hand, right-wing parties blame the difficulties and bureaucracy in construction processes , arguing that a free market would be the best option for both tenants and owners. Here are some of the main proposals for housing from each party. Partido Socialista Aliança Democrática Chega Iniciativa Liberal Bloco de Esquerda Coligação Democrática Unitária Livre Pessoas – Animais – Natureza Partido Socialista (PS) Home ownership: - Public guarantee on bank financing for housing loans for individuals up to 40 years old without property in their name; - Possibility of keeping the house as a permanent home by paying rent to the state in the event of non-payment of the mortgage. Housing for young people: - An increase of 50 euros per year in the deductible expenditure on rent for personal income tax purposes, up to 800 euros; - Revision of the calculation formula for updating rents, including the evolution of salaries in the updating criteria in years with inflation above 2%. For construction: - Ensure the integration of cost-controlled solutions in the licensing of new projects; - Encourage a program for the state to purchase houses mortgaged to banks, with a guarantee of a lifetime lease for the owners or integration of these houses into affordable rental programs. Aliança Democrática (PSD, CDS e PPM) To solve the housing crisis, the proposals of the DA (PSD, CDS and PPM) essentially include: - Increasing the supply of housing; - Reducing taxes and bureaucracy; - Injecting public properties into the market. Housing for young people: - Freeing younger age groups from stamp duty and IMT when buying their first home; - Public guarantee to make it possible for banks to finance the entire price of the house. For construction: - Applying VAT at a minimum rate of 6% on construction and rehabilitation work; - Creation of public-private partnerships to build and rehabilitate housing on a large scale. One of the main points of ADs campaign is also the repeal of measures implemented by the previous government, such as the freezing of rents, forced renting and measures penalizing local accommodation. Chega On taxes, Chega proposes: - Repeal AIMI; - Abolish IMT and IMI when it comes to permanent housing. Housing for young people: - When it comes to buying a first home, the party proposes re-establishing subsidized youth credit with specific credit lines; - Lower interest rates for loans granted to young people up to the age of 35. For construction: - Making suitable land available for housing construction; - Encourage the construction of affordable housing using public land with a 90-year concession. Iniciativa Liberal (IL) The Liberal Initiatives proposals include eliminating rent freezes, increasing the amount of land available for housing, encouraging construction and eliminating all forms of forced renting. Housing for young people: - Reducing VAT on construction from the current 23% to the minimum rate of 6% for new buildings; - Elimination of IMT on the purchase of own permanent housing. For construction: - Creation of an incentive scheme for new construction for rent (built-to-rent); - Increasing the number of plots available for construction and maximizing the use of these plots through high-rise construction. Bloco de Esquerda (BE) For the Left Bloc, starting to solve the housing crisis involves three topics: controlling rents, lowering interest rates and increasing supply. To control rents: - Establish maximum ceilings for rents, taking into account variables such as the area of the property, the quality of the accommodation, energy certification, location and typology; - Limit the legal updating of rents based on the evolution of purchasing power. For housing loans: - Use Caixa Geral de Depósitos position to implement a low interest rate policy in the housing loan market; - Encourage a reduction in the cost of loans for own and permanent housing. For affordable housing: - Set aside part of new construction for affordable housing; - Support the public construction of new affordable rental housing. Coligação Democrática Unitária (PCP-PEV) For the CDU, one of the most urgent measures is to expand the public housing supply: - By mobilizing state assets for housing purposes and investing in the construction of public housing; - Support for the cooperative movement, the social and mutual sector to build quality housing at controlled costs, for supported or conditional rent, including cases of recovery, construction and rehabilitation. In the case of affordable and student housing: - Creation of a program of university residences with controlled-cost construction and free access for student accommodation; - Reconfiguration of the Housing and Urban Rehabilitation Institute (IHRU) as a central public body that promotes public housing and boosts construction and urban rehabilitation policies. With regard to rents, the Communist Party proposes - Repeal of the evictions law and the creation of a special tenant protection regime to limit rent increases and evictions; - Changing the supported rent regime to ensure that the rent does not exceed an effort rate of 15% of the households net income and that changes in income are automatically reflected in the rent. Livre One of Livres flagships is to reach 10% public housing, to minimize the lack of supply in the rental market, allocating funds from the State Budget for continuous investment in construction, rehabilitation and conservation, in order to reach 600,000 homes in the long term. Livre believes that public housing should not be restricted to social housing, but should be expanded to include other programs, demanding a rigorous survey of the number of public housing units. For those who want to buy their first home, the party proposes: - Financing of up to 30% of the propertys market value for first-time homebuyers, in the form of an equity loan to help with the down payment and expenses, with a guarantors guarantee in return; - To be eligible for the program, the cost of housing cannot exceed the average value per square meter measured by INE for the municipality where the property is located, and the type of housing must correspond to the households constitution. With regard to affordable and student housing: - Increase the number of vacancies in university residences and social support for housing displaced students, by creating university residences on underused state property; - Create a housing desk that functions as a single national network of specialized services, in person and via a digital platform, to deal with all aspects related to access to housing; In the field of renting: - Include the rental of a room, in a dwelling of a type appropriate to the number of people sharing the house, in the Porta 65 program, aimed at a single person regardless of age; - Establish ceilings on rents, for at least five years, for homes owned by landlords who receive funding from state-sponsored programs. Pessoas – Animais – Natureza (PAN) In the area of rents, the PAN proposes: - Significantly reduce the IRS of landlords who promote affordable rents; - Updating rent prices below inflation. For young people: - Convert vacant public properties into housing for young people, namely students, with rents in line with the value of university residences. It is proposed that they should be able to live there for a year after the end of their studies; - Approve a subsidized credit scheme for young people aged 18 to 35 for housing loans and ensure a reduction in additional expenses when buying their own home. The PAN also plans to - Create a regime of non-discrimination in access to renting for families with pets; - Reviewing territorial management instruments to include and provide for a possible limitation and suspension of authorizations in some cases and areas of the country for local accommodation. See also: Where do the politicians running for parliament live? Find out more
Source: Freepik Author: Redaction By June, Lisbon City Council intends to open the first tender for the Cooperative 1st Housing Program , for a plot of land located in the Lumiar area. According to the municipality, this project will be open to all people without a home of their own who form cooperatives and can submit their applications to build permanent housing on land provided by the Lisbon council. The winners of the tender will be responsible for the construction costs and will hold the surface rights for a period of 90 years, which can be renewed. There are currently five projects being prepared in various locations in Lisbon under the program , with the municipality assuming that around 500 homes will be built in an initiative that was approved on February 14 . With great interest on the part of the cooperatives eligible for the tender, there are already, according to the local authoritys housing councillor, several people calling and sending emails asking for information. Applications for this first project in Lumiar will be opened by the end of the first semester , according to the information shared by the councilwoman, Filipa Roseta, and t he project, already licensed by the municipality, includes the construction of 18 houses, to which 22 parking spaces will be added. In total, the work will cost 3.83 million euros, plus VAT. Several plots of land in Lisbon have building potential As Lisbons Housing Councillor, Filipa Roseta, points out, the winning cooperative will be able to start building at the end of this year , adding that this will be a test of the new partnership model , and is one of several programs that the municipality has underway to build affordable housing. [Lisbon has] had dozens of vacant or ruined lots for decades , admits Filipa Roseta, stressing the potential for building 7,000 homes: its huge. We really need to find a model on which there is a minimally stable political consensus, so that together we can put housing and land at the service of the people. People need housing and we want to provide it. Also read: Coimbra wants to attract more technological investment and Lisbon project wants to intervene in empty lots
Source: Freepik Author: Redaction The municipality of Torres Vedras is going ahead with the launch of a public housing offer for two hundred homes to meet the needs of the population, in an estimated investment of 32 million euros , making changes to the Local Housing Strategy (ELH). The municipalitys main objective is to strengthen its response capacity in the field of housing , above all by increasing the number of people and households identified as being in economic and housing need. In order to achieve this goal, Torres Vedras will expand the responses according to the number of families who, while not meeting the eligibility criteria for the supported rent scheme, may also be experiencing difficulties with their housing costs. This acquisition has funding from the Lisbon district , but it also hopes to obtain funding from the 1st Right Program - Support Program for Access to Housing , as well as from the Recovery and Resilience Plan. Local Housing Strategy undergoes changes In order to be able to respond to the shortages, the municipality has approved changes to the Local Housing Strategy , updating it to include the launch of a public takeover bid, as well as extending the implementation period by 10 years , until 2035. Investment will also be increased, from 13.8 million euros to 60.5 million euros , and there will be greater flexibility in the responses and diversification of solutions for the housing sector. After the update, the municipality carried out a needs assessment and found more people in vulnerable situations , increasing the number from 808 to around 1,505 people, now including 561 families instead of the initial 282. As he announced, the number of families and people to be covered by the municipalitys help in finding housing solutions will also increase , responding through the 1st Right Program, which will then offer rent-controlled prices. These proposals will be submitted to the Torres Vedras Municipal Assembly, which will meet until the end of February to vote on them. The public tender notice will only be published in the Diário da República after approval. Find out more: Real estate funds increase focus on residential properties , More families opt for mixed rates on home loans
Source: Freepik Author: Redaction The Affordable Rental Program has new access conditions, and the Ordinance regulating applications was published in the Diário da República this Monday, February 19. One of the new features is the name, which is now the Rental Support Program , followed by the access conditions, which now include more families. In order to make rents compatible with salaries, the maximum ceiling for gross income eligible to apply for support has been increased , from €35,000 to €38,632, as of Tuesday, February 20. What are the new eligibility criteria? First of all, with the publication of the ordinance, and with the changes coming into force from February 20, the maximum annual income established increases depending on the composition of the household , with households made up of just one person being able to apply if their gross annual income does not exceed the limit of the 6th IRS bracket, which is less than €37,632. On the other hand, in a household made up of 2 people, it is eligible if the gross annual income is up to the limit of the 6th bracket or lower, up to €38,632 plus €10,000, i.e. €48,632. In a household with more than two people, the eligible gross annual income is up to the limit of the 6th IRS bracket or lower, up to €38,632 plus €10,000, plus €5,000 for each additional person. The ordinance thus provides for an increase in the maximum income value for the purposes of eligibility of housing households, seeking to consolidate the objective of promoting a supply of private rental housing at prices compatible with family incomes , as explained in the ordinance. Types will now be adapted to the size of households One of the many new features is also the concept of typology suited to each family which, according to the ordinance, replaces the previous concept of minimum occupancy of dwellings . It also adds that the type of housing may be higher than that provided for (...) in cases where the price of the monthly rent complies with the limits provided for the type suitable for the household. When accommodation is made available in the form of part of a dwelling, the minimum occupancy is one person per room , the decree clarifies. More topics like this: Lisbon kicks off rent support applications , Rent support: Tax authorities confirm payment to all beneficiaries
Source: Freepik Author: Redaction This Wednesday, February 14, the City Council took another step towards more affordable housing, approving the proposal to carry out operations under the new Lisbon 1st Housing Cooperatives programme for non-profit housing. The aim is to make municipal property available to housing co-operatives in order to increase the supply of affordable housing. With this approval, the municipality is taking a step towards responding to the housing problems experienced in the capital, namely by making municipal assets available, such as land that can be used by housing co-operatives to build affordable homes. Housing is and will continue to be the top priority of our mandate. In the history of Lisbon City Hall, there has never been a comparable amount of investment in this area, which will reach 800 million euros by 2028. We have also done everything we can to find new ways and solutions to approve a proposal for the citys cooperative model, emphasises the Mayor of Lisbon, Carlos Moedas. He added: This is yet another path we want to take to increase the supply of affordable housing in the city. The first step has been taken and will go ahead in the parish of Lumiar, having identified empty lots with small-scale housing potential to be covered by the programme. Thus, with this model, the Lisbon municipality assumes the costs of the architectural, licensing and execution projects, removing this financial burden from the cooperatives and thus seeking to guarantee a considerable reduction in the time it takes to carry out the work, the mayor guarantees, adding that the cooperatives that are selected, through a call for tenders, will be able to immediately start realising the projects. Find out more about Housing in SUPERCASA News
Source: Freepik Author: Redaction Buying a house is no longer within everyones reach due to the difficulties in accessing housing , both because of the lack of supply of properties and because of the sharp rise in prices over the last year , which has put the dream of becoming a homeowner on hold. In large urban centers and on the coast, this is a much more significant trend, as the National Statistics Institute (INE) announced on Tuesday, February 6. According to the statistical office, the interior of the country is currently the geographical area where prices are most attractive for buying a house, offering not only great tranquillity and contact with nature, but also some benefits to encourage the placement of new inhabitants. Thus, according to the INE, the 10 cheapest municipalities in which to buy a property are roughly located in the districts of Guarda, Viseu and Castelo Branco. Between October 2022 and September 2022, according to INEs analysis, houses sold in Portugal had a median price of 1,579 euros/m2 , which is 2.5% more than in the year ending in June. However, only 46 of the countrys 304 municipalities showed higher prices, with Lisbon, Cascais and Oeiras topping the table. In the vast majority of Portugals 304 municipalities, despite the trend seen in the 49 mentioned above, prices are much lower, indicating that the highest housing costs are concentrated in large urban centers such as Lisbon, Faro and Porto, which have contributed to the increase in prices nationwide. Where are the cheapest and most expensive houses in Portugal? If youre looking for a house, SUPERCASA Notícias reveals where you can find the cheapest properties, based on INE data. You already know that inland municipalities are the most economical and attractive choice, but its in Figueira de Castelo Rodrigo , in the district of Guarda, where the median prices are cheapest compared to the other municipalities, with a value of 140 euros/m2. So, to buy a 100m2 house in this town, you only need around 14 thousand euros. Just behind Figueira de Castelo Rodrigo is the town of Mêda, also in Guarda , with a median price for houses sold of 163 euros/m2, and in third place, in the district of Viseu, Sernancelhe , where buying a house cost 197 euros/m2 in the last year ending in the third quarter of 2023. On the other hand, the most expensive municipalities, according to INE, are located in the countrys major urban centers, including Lisbon, Faro and Porto. However, it is Lisbon that stands out as the most expensive municipality of all , with the median price of houses sold standing at 4,151 euros/m2 in the last year ending in September 2023, with families paying 415,000 euros for a home in the capital, in median terms. Cascais and Oeiras follow , also in Lisbon, with prices set at 3,831 euros/m2 and 3,177 euros/m2, respectively. On the other hand, Faro has the six most expensive municipalities in the ranking: Loulé, Lagos, Vila do Bisco, Aljezur, Tavira and Albufeira. Porto comes in eighth place. Read also: DBRS analysis: housing prices are reaching the limit , Portuguese families are the most impacted by interest rates
Source: Freepik Author: Redaction The financial rating agency DBRS analyzed the latest Eurostat data and warned of the situation in Portugal: despite a slowdown in house prices, they continue to rise. This is not a real estate bubble , but rather prices reaching their limit , which is going against the trend seen in the other Eurozone countries, where house prices have fallen by an average of 2.1%. According to DBRS, prices continue to trend upwards despite the slowdown in recent quarters , after the package of laws enacted by the government to control house prices was approved, as they have become increasingly unaffordable for the Portuguese. He adds, regarding the current residential real estate market, that despite the relatively low unemployment rate and the increase in demand for homes by foreigners in the country, we dont consider that the market is facing a bubble , however, it may be approaching its peak in terms of prices , and dismisses the possibility of an abrupt drop in prices in the months ahead. The lack of supply is the main reason given by the financial rating agency for the o pposite trend in prices between Portugal and the Eurozone , with DBRS pointing out that only 16,000 houses were built in 2023, a much lower number than the average of ten years ago, which corresponded to the annual construction of 92 houses. On the other hand, the DBRS points to the countrys increasing popularity as a tourist destination, especially since the second half of the 2010s as a factor that may have driven up housing prices , as there has been growing demand from expatriates, retired foreigners and digital nomads , attracted by programs such as gold visas and tax benefits. The agency points out that foreign demand was particularly felt in large urban areas such as Porto and Lisbon and in vacation areas such as the Algarve region . Related topics to read next: Best cities in the world in 2024: Lisbon and Porto in the spotlight , House prices have risen sharply in Portugal and Lisbon: housing prices rise despite the end of the NHR
Source: Freepik Author: Redaction Portugal stands out as one of the Eurozone countries that has most reduced inequalities in the distribution of household wealth. According to data revealed by the European Central Bank (ECB), the Gini coefficient of net household wealth in Portugal has fallen by 6.3% in the last six years . This figure is around four times more than the average of the 20 countries in the single currency area. Between the second quarter of 2017 and the second quarter of 2023 , only Slovakia , the Netherlands , Ireland and Cyprus have seen a greater correction in net wealth distribution inequalities than Portugal . There has been a clear (positive) divergence between Portugal and the Eurozone average since 2017, according to data recently published by the ECB. The Portuguese Gini coefficient (measured on a scale of 0 to 1, where 0 corresponds to complete equality and 1 to complete inequality) of net wealth distribution is now lower than that of the Eurozone , something that hasnt happened for six years. Susana Peralta, Professor of Economics at Nova SBE , attributes this divergence to the valuation of houses . The economists observation is supported by the rise in house prices in Portugal during this period, where the average rate was 10% per year, double the increase in prices recorded by the Eurozone average, according to Eurostat . Only Lithuania and Estonia have seen a more significant rise in house prices than Portugal over the last 6 years. Its important to consider the strong concentration of national household wealth in real estate , which, according to ECB data, accounts for more than two thirds of household net wealth. You have to go back more than a decade, to the fourth quarter of 2012, to find such a significant weight of residential real estate in the composition of Portuguese household wealth. Follow this and other topics in SUPERCASA News .