Recent government measures to make it easier for young people to buy a home have drawn intense criticism, often being compared to futile attempts to solve a deep-rooted problem with superficial solutions. Portugal is facing an unprecedented housing crisis, and proposed tax exemptions, such as IMT and Stamp Duty, are seen by many as an insufficient attempt to address a systemic problem.
The Silent Exodus of Young People Significant youth emigration has marked Portugal in recent years, with almost one in three young people now living outside the country. The lack of affordable housing is a major cause of this brain drain, and high housing prices in major cities such as Lisbon and Porto have made it untenable for young people to settle in their own country.
Empty Homes and the Housing Paradox Meanwhile, there is a glaring paradox in the real estate market: more than 154,000 homes are empty in Portugal, despite the high demand for housing. Many owners avoid renting out their properties due to bureaucracy, maintenance costs and fear of facing legal problems with tenants. The expectation of real estate appreciation also leads many to keep their properties vacant, further aggravating the housing deficit.
A Solution That Doesn’t Solve Problems Government measures, such as tax exemptions for young people when buying their first home, are not seen as an adequate solution for most people. For many young people with modest incomes, buying a home is still a distant goal, and the exemptions offered only apply to properties below 316,772 euros, a price that, in practice, excludes most young people with middle or low incomes.
The Danger of Promoting Homeownership Over Renting Beyond financial concerns, critics warn that focusing on encouraging homeownership rather than strengthening the rental market could create a generation of young people trapped in long-term mortgages. This reduces their mobility and flexibility, especially in a job market where moving to another city or country is essential for career advancement.
Real Estate Speculation and Inequality Following the announcement of the government’s measures, house prices continued to rise, fuelled by real estate speculation. As a result, the beneficiaries of the policies themselves find themselves increasingly pushed back from their dream of owning their own home. At the same time, the cultural obsession with property in Portugal continues to favour speculation, to the detriment of a more balanced and sustainable solution for the housing market.
Need for a Mindset Change Rather than continuing to promote ownership, many experts argue that Portugal should look to countries like Germany, where renting is more common and socially accepted. A strong and affordable rental market could provide more security and flexibility for young people, without the pressure of making long-term financial commitments.
The Future of Housing in Portugal If policies are not changed, the country risks seeing a continued rise in housing prices, with young people burdened by debt and the housing market becoming increasingly unaffordable. The solution requires not only fiscal and regulatory adjustments, but also a cultural shift that values renting and promotes greater mobility and flexibility. The future of a generation is at stake, and policy actions need to match the severity of the housing crisis.
Comentarios