Madeira promotes housing at regulated prices on the market

The Government of Madeira will build 55 new properties under the Casa Própria Programme, with prices 30% below market value.

04 Sep 2023 min de leitura

The Madeira government stated its plan to act as a housing regulator by launching the construction of homes that will be sold at prices 30% below market value. According to Pedro Fino, Secretary of Equipment and Infrastructure, the administration is "acting on the supply side to have a regulatory effect on the housing market."

In this regard, and in accordance with the governor's remarks during a visit to a parcel of land in Funchal, 55 dwellings under the Casa Própria Program will be built in the same space, the permission of which has already been decided in the regional assembly. The goal is to promote the creation of affordable homes.

The Casa Própria program includes a set of incentives for housing cooperatives and real estate developers for the construction and rehabilitation of properties, with the goal of placing properties on the market at prices "adjusted to the effort rate of the middle class and young people at the beginning of their professional lives." According to the executive, the final acquisition value will be up to 30% less under these conditions.

The site on which the 55 properties will be built will be given to a private developer for an investment of roughly 10 million euros, which will be backed up by a subsidized credit line and reduced VAT.

The person in charge stated that "we will also contribute 50% of the deposit [entry value] to the buyer," implying that the typical cost of these houses should be close to 160.000 euros.

Additionally, as part of the Casa Própria Program, approximately 200 new development projects for homes will be presented in Funchal.

Adapted from Supercasa