The Minister of Infrastructure and Housing said today that gentrification in Lisbon is worrying but normal, adding that the housing problem does not have to be solved in the city center, but with efficient public transport.
“Lisbon today is a rejuvenated city, but this has brought about a worrying process of gentrification, but it’s happening all over the world, and we have to take a normal view of it. The housing problem doesn’t have to be solved in the center of Lisbon”, said Miguel Pinto Luz, during a conference promoted by CNN Portugal, with the theme “Portugal Habita: Challenges and Threats”, at the Lisbon Real Estate Exhibition.
Gentrification refers to a process of urban change and social replacement in the neighbourhoods of historic city centers, which is the result of real estate appreciation, usually accompanied by the departure of residents with less economic power to other places and the entry of residents with greater economic power, and has led to demonstrations across the country, promoted by organizations defending the right to housing and the city.
The minister argued today that if the country manages to develop an efficient public transport network, so that it is possible to reach city centers quickly, it will be possible to “solve the housing problem”.
Pinto Luz assumed “ideological differences” with the measures adopted by António Costa’s government in the area of housing, but guaranteed that he doesn’t intend to “wipe out everything that was done by the previous government”.
The previous Socialist executive approved the Mais Habitação (More Housing) program, which includes measures such as controlling rent increases in new contracts, limits on local accommodation, or rent support for families with incomes up to the 6th IRS bracket.
Among the changes that the new government will implement, listed by the minister, is the creation of a new building code that clearly defines the quality levels of construction (luxury segment, middle class, etc.), greater intervention by banks, tax incentives and the reversal of limits on local accommodation.
“We believe that the predictability of those who have invested [in local accommodation] must take precedence,” said the minister.
Miguel Pinto Luz totally rejected any initiative to control rental prices and stressed that his government believes “that the market works”.
The minister responsible for housing also said that support for rents, such as Porta 65, Porta 65+ and Porta 65 Jovem, is being “revisited” and will be strengthened.
The leader, who is part of an executive elected without an absolute majority, guaranteed that these changes will be implemented and left a warning: “Then if parliament wants to replace the government and govern from parliament, that’s another matter.”
