OE2024: Construction and real estate sector dissatisfied with response to issues.

Investing in building on a plot of land or acquiring a new home? The real estate agency Casa no Minuto and the credit intermediaries of Poupança no Minuto are services you can rely on for hassle-free processes. But first, understand what is expected from these areas in 2024.

CPCI recognizes the emphasis on income appreciation and investment promotion.

During the conference "State Budget for 2024 - Impact on the Construction Sector", organized by the Association of Construction and Public Works Entrepreneurs (AICCOPN) in Porto, the Portuguese Confederation of Construction and Real Estate (CPCI) acknowledges the emphasis on income valorization and investment promotion included in the OE2024.

"The proposal of the State Budget for 2024 has the merit of electing, as main axes of action, the valorization of the Portuguese incomes, the promotion of investment and the protection of the future," stated by Manuel Reis Campos, president of CPCI, according to publication of Notícias ao Minuto.

In addition, CPCI is also satisfied with the "tax relief in IRS, particularly regarding the reduction of rates and updating of brackets, the tax incentive for housing for relocated workers and the exemption from taxation on profit distribution of companies". It also values "the elimination of budgetary allocations", as well as "the creation of a fund in the amount of 2.1 billion euros for investment post-2026".

But fears capacity to respond to sectorial problems

However, at the same conference, the president of CPCI fears the “implementation capacity” of the investments planned by the Government, particularly within the scope of the Recovery and Resilience Plan (RRP), hoping that “the proposal would be more ambitious in responding to the main problems and challenges of the construction and real estate sector,” as stated in the news article.

Regarding public investment, due to the Government not meeting the objectives it set in previous years, Manuel Reis Campos considers the proposed increase of 600 million euros in national component and 1.200 million from European funds "unrealistic", compared to 2023, since this measure "does not eliminate fears" regarding the actual realization of the investments planned in the PRR and Portugal 2030.  

Regarding the promotion of private investment, mainly in housing, and the reduction of tax burden on real estate, Manuel Reis points out the absence of structural measures capable of supporting economic agents, due to the economic context of high uncertainty and increasing interest rates.

The president of CPCI and AICCOPN reiterates then that this State Budget should "provide strong incentives to increase the supply of houses", namely "through the application of the reduced VAT rate to all construction, rehabilitation and housing maintenance, and the elimination of AIMI (IMI that reverts to the State), among other measures advocated".

Housing problem "will not be solved only with public investment" or "conjunctural measures"

Still, according to the news published by Notícias ao Minuto, one of the most serious problems in the country is the housing supply and Manuel Reis believes that this "will not be solved only with public investment and with the use of temporary measures, such as support for tenants and mortgage holders."

Even though the responsible person confirms the need for these measures, they consider that they will not lead "to a structural resolution of the problem of the limited supply of houses in decent conditions and compatible with the income of most Portuguese people, especially the younger ones".

Note that this proposal from OE2024 is not yet approved and will be discussed and voted on in the general assembly on October 30th and 31st, with the final global vote taking place on November 29th.  

Planning to invest in construction or housing in 2024.

Is it in your plans to build or buy a house in 2024? In the current context, you may face numerous challenges.

Not only the lack of supply, but also a general increase in prices: Whether in building materials or in housing to acquire.  

To make the right decisions for your needs and your wallet, it may be important to seek help.  

In order to find the perfect land or house, a real estate agency can be the ideal service for you: The consultants from Casa no Minuto are available to help you find and acquire what you are looking for!

And if you want to resort to financing, know that you can access home construction credit, or home acquisition credit. In this process, you can also use the help of credit intermediaries, such as those from Poupança no Minuto. Our service is free and we guarantee constant, fast and personalized support.  

So, if you plan to invest in construction or housing in the next year of 2024, contact us, do not worry about bureaucracy, and ensure savings from day one!