The guarantee was given by the government at the opening session of the IV Semana da Reabilitação Urbana in Lisbon, an incentive organised by Vida Imobiliária with the support of Iberian.Property, which runs until Sunday in the Portuguese capital.
António Costa explained that, at the moment “the creation of vehicles similar to REIT’s are already being worked on at the Ministry of Finance and the Commission for the Real Estate Values Market, which we know to be an important instrument for the mobilisation of private investment for the real estate sector, and that is especially attractive for foreign capital”.
Without giving a date for this legal initiative to come into force, the Prime Minister underlined that this is a decisive step to multiply the volume of investment aimed at the national real estate market “renewal included”, recognising, nevertheless, that “its success is dependant on private investment”.
5,000 million to invest in urban renewal
The creation of a regime of REIT’s (equivalent to the Spanish socimi) is one of the measures that the Executive, led by Costa, has up its sleeve to dynamise activity in the construction and real estate sector. At the same time, the Government leader presented, in general terms, the measures included in their ‘National Plan for Reforms’ which aims to boost city regeneration and add value to national territory.
In this context, the Prime Minister highlighted the six sub programmes which, together, “will allow nearly 5,000 million euros for investment in urban renewal up to 2023”. This amount will become available on the market in phases by means of the six sub programmes, including the IFRRU – Instrumento Financeiro para a Reabilitação e Regeneração Urbana (‘Financial Instrument for Urban Renovation and Renewal’), with a funding of 1,400 million euros, the Fundo Nacional de Reabilitação do Edificado (‘National Fund for the Renovation of Property’), for which investment could be up to a further 1,400 million euros, and the programme Casa Eficiente (‘Efficient Home’), which will free up a minimum of 235 million euros. These programmes are in addition to the existing PEDUR e PARUR, with 980 million euros, with funds from Portugal 2020, ao Reabilitar para Arrendar (‘Renovation for Rental’) – a line of renewable financing of 50 million euros – and, to the programme for the renovation of social housing areas and to the programme for the renovation of public administration.