Promoters and builders argue that this measure has been needed for a long time and can help boost the build-to-rent sector, as well as incentivize those who are more risk averse at the investment and construction stage. “This reduction should also be reflected in the final price of the house,” says the person in charge of the Quintela e Penalva real estate agency.
The government's proposal to reduce VAT to 6% included in the 2025 state budget is seen as positive and necessary by the developers and builders interviewed by Jornal Económico (JE). It will also have the potential to provide affordable housing, but also a more stable and confident market.
“If implemented, it will be a welcome measure for the sector, that is, promoting the construction and promotion of housing and creating conditions so that there is a greater appetite for investment by property developers in this promotion to try to alleviate the problem that exists today in housing. I think the government wants to act from this Basically the corner,” Carlos Mota Santos, CEO of construction company Mota-Engil, told JE.
This proposal is part of the “Build Portugal” program and the Executive intends for it to enter into force by the end of 2025, until the end of 2025. “It is a positive measure and from what we can see it creates differentiation for this sector of the housing group that needs more access, such as Young people,” says Antonio Carlos Rodriguez, CEO of Casais Group, highlighting that you do not need to align all Owners To avoid any setbacks in affordable housing, such as a small difference in capital cost or delays in licensing. “It is enough for one of these factors to occur for the project not to come to fruition, and that is why, above all, we need major measures from the government and solutions that allow us to bring building systems to the market that allow us to generate income and gain scale in terms of industrial relations,” he explains.
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