Homes to be offered in Madeira at 30% below market value

The Government of Madeira (PSD/CDS-PP) said on Tuesday that it intends to act as a regulator in the housing sector, promoting the construction of housing that will be sold at prices up to 30% below market value.

“We are acting on the supply side to have a regulatory impact on the housing market, because we are going to provide houses at a price of about 30% below market value,” said Minister of Equipment and Infrastructure Pedro Fino.

The minister spoke during a visit to a plot of land in Funchal where 55 houses will be built under the Casa Própria program, already approved in a regional legislative ordinance, which aims to promote housing through a controlled cost construction regime.

The program provides for a series of incentives to be provided to housing cooperatives and developers to build and rehabilitate affordable housing and then sell it at “prices adapted to the level of effort of the middle class and young people starting their professional life.” “.

According to the head of the region, the combination of these benefits will make it possible to make the final purchase price up to 30% below the market price.

Pedro Fino explained that for the 55 residential project, the land will be transferred to a private developer for an investment valued at around 10 million euros, supported by a subsidized line of credit and reduced VAT.

“We will also make 50% of the down payment. [valor de entrada] buyer,” he said, pointing out that the average price of houses should be 160,000 euros.

The Regional Secretary for Equipment and Infrastructure announced that the Executive will soon present a new project for the construction of another 200 houses under the Casa Própria program, also in the municipality of Funchal.