Affordable Housing: Urgency, Incentives, and the Risk of Making Mistakes Again

The housing crisis in Portugal is no longer a technical issue but a daily concern for families, companies, young people and those trying to plan their future. Today there is good reason to talk about incentives for construction and rehabilitation as part of the solution. Measures such as tax cuts can help unlock projects, accelerate investments and increase supply. But this discussion cannot be stuck only in the short term.
I believe that the reduction of VAT on construction and also some relief in the IRS for landlords may be necessary paths in this context, especially when associated with affordable housing projects and long-term rental. However, we cannot look at these measures only as immediate economic benefits. We are talking about strategic decisions for the lives of people, cities and the country. And when I say strategic, I mean it in the deep sense of the word. The impact of these choices will last for decades.
There is a dilemma that must be faced seriously. Incentives alone do not solve everything. The still very closed mentality of some municipalities, the slowness of licensing, the excessive bureaucracy and the lack of territorial vision do not disappear just because a tax is lowered. And there is also a real risk that the rush to produce affordable housing will compromise the quality, durability and dignity of what is built. The real question is simple. How do we ensure that this does not happen again?
As a real estate agent and investment consultant, I fear precisely this return to old mistakes, although I believe that today we are more aware. The past teaches us a lot. It is enough to remember how, in the 70s, 80s and 90s, many neighborhoods were built en masse on the outskirts of Lisbon. Clandestine urbanizations without planning, without public spaces, without constructive quality. The result is still visible today in some of these territories.
The same happened in a large part of our coast. Areas such as Praia da Rocha, Albufeira, Armação de Pêra or Quarteira have grown at the pace of mass tourism, with quick solutions that today present enormous challenges of rehabilitation, comfort and urban integration. Yesterday's cheap has become today's expensive.
It is true that economic incentives, when well structured, have enormous transformative power. Just look at what happened with the digitalization of the country. It also allows for space for innovative construction solutions, more compact and flexible typologies, prefabrication, reuse of materials, sustainable construction and less environmental impact. All of these are real gains. But none of this can be done by sacrificing quality, comfort and architecture.
Housing is not a disposable product. Every square meter built today will shape the way we will live tomorrow. The real cost of a house is not only measured in euros. It is measured in time, dignity, social integration, quality of life and environmental impact.
The response to the housing crisis cannot wait. Incentives must move forward and quickly. But they must be applied with criteria, with urban planning, with technical requirements and with a long-term vision. It is not enough to build more. We need to build better. And perhaps it is also time for society to rethink habits, expectations and even some ideologies that, in practice, do not help to create a fairer, more dignified and friendlier country for those who live here.
Portugal needs houses. But it needs even more cities with a future.