Portugal has already identified several solutions to increase housing supply, including renovating deteriorated properties, building in areas with urban capacity and developing new urban centres. However, the main challenge is turning these strategies into completed projects by addressing three key obstacles: lengthy planning procedures, tax uncertainty and a shortage of skilled labour. The revised Legal Framework for Urbanisation and Building (RJUE), in force since 1 October, aims to accelerate procedures by extending the use of prior notification, while increasing developers’ responsibility and strengthening subsequent inspections. At the same time, the reduced 6% VAT rate on certain residential construction and renovation works requires stable policies and clear transitional rules to ensure investment viability. Finally, the industrialisation of construction, through the off-site production of building components, could improve productivity, shorten delivery times and make costs and quality more predictable. Delivering more housing will therefore depend on coordinating faster procedures, tax predictability and greater construction capacity.
Published in Público, September 14, 2026.
Read the full article
here