Gentrification is "worrying" but must be seen as "normal"
The Minister of Infrastructure and Housing considered today that gentrification in Lisbon is worrisome but normal, adding that the housing problem does not have to be solved in the city center, but with efficient public transportation.
© Lusa
Economia Miguel Pinto Luz
"Lisbon today is a rejuvenated city, but this has brought about a worrying process of gentrification, but that happens all over the world, we have to look at this normally. The housing problem does not have to be solved in downtown 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 Fair.
Gentrification refers to a process of urban change and social replacement in the neighborhoods of the historic center of cities, which results from real estate appreciation, usually accompanied by the departure of residents with less economic power to other locations and the entry of residents with greater economic power, and has led to demonstrations throughout the country, promoted by organizations defending the right to housing and the city.
The minister defended today that if the country manages to develop an efficient public transport network, so that it is possible to quickly reach the city centers, it will be possible to "solve the housing problem".
Pinto Luz assumed "ideological differences" with the measures adopted by António Costa's executive in the Housing area, but guaranteed that he does not intend to "destroy everything that was done by the previous Government".
The previous socialist executive approved the Mais Habitação program, which includes measures such as controlling the increase in rents 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 construction code that clearly defines the levels of construction quality (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 invested [in local accommodation] must prevail", stressed the minister.
Miguel Pinto Luz totally rejected any initiative to control rental prices and stressed that the Government he is part of believes "that the market works".
The minister in charge of housing also said that rent support, such as Porta 65, Porta 65+ and Porta 65 Jovem, are being "reviewed" and will be reinforced.
The minister, who is part of an executive elected without an absolute majority, guaranteed that these changes will be implemented and left a warning: "Then if the parliament wants to replace the Government and govern from the parliament, that's another story".
Leia Também: Mais Habitação? "Não vamos rasgar" (Governo revela o que vai fazer) (Portuguese version)
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