en 
Among the potential solutions to the growing housing shortage, especially affordable housing, is the adoption of modular and industrialized construction. This approach not only accelerates the construction process but also reduces costs, making it an attractive option for both public and private housing initiatives. In Portugal, several examples of completed projects, such as hotels and university residences, showcase the viability of this model.
However, despite its clear potential, the widespread adoption of industrialized construction in affordable housing projects has been slow. One of the main barriers is the lack of a comprehensive strategy and cultural resistance to this innovative approach. Public bodies and municipalities are often unprepared or unresponsive in public housing tenders, a situation exacerbated by the inefficiencies of the Housing and Urban Rehabilitation Institute (IHRU), the entity responsible for managing public housing. The new leadership of IHRU has acknowledged this issue, with delays in housing projects funded under the Recovery and Resilience Plan (PRR) often being attributed to the institute’s slow response times.
At the same time, the shortage of skilled labor makes traditional construction methods increasingly inadequate. According to experts, the only way to overcome these challenges is by embracing industrialized processes, which offer a faster and more scalable solution compared to conventional methods. This shift in paradigm is necessary to meet the urgent housing demands in Portugal.
Despite the potential of industrialized construction, excessive bureaucracy remains a significant hindrance. Delays in licensing, high taxes, and the lack of a consistent housing policy all contribute to the slow uptake of modular construction. These challenges must be addressed for the sector to truly benefit from industrialized solutions. For instance, public procurement processes often prevent the use of modular construction due to rigid requirements in the public contracting code. When tenders are open, the projects are often not designed with modular construction in mind, which makes it difficult to meet deadlines using this method.
Nevertheless, there are signs of progress. Some municipalities have already begun to incorporate modular construction solutions in their affordable housing tenders, where the project is delivered with complete designs, including modular construction methods. The potential is clear—if the sector were to fully embrace industrialized construction, it could dramatically increase the number of affordable housing units built each year, helping to resolve one of Portugal’s most pressing social issues. Ultimately, stronger collaboration between the public and private sectors, along with legislative adjustments, are key to unlocking the full potential of this construction model.
Paulo Lopes is a multi-talent Portuguese citizen who made his Master of Economics in Switzerland and studied law at Lusófona in Lisbon - CEO of Casaiberia in Lisbon and Algarve.
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And with cheaper houses come more non resident foreign buyers which will bring us right back to where we started. Stop non resident foreign buyers OR tax the hell out of vacant properties that are vacant more than 6 months per year.
By MC from Algarve on 13 Jan 2025, 08:19
Are modular buildings earthquake resistant as concrete frame buildings in Portugal are required to withstand up to factor 7 on the Richter scale?
By Richard Kale from Algarve on 13 Jan 2025, 09:51
There is the issue of training availability; in order to increase the number of contract and subcontract workers. Students that want to learn electrical or mechanical, for example, cannot afford to study in Lisbon (or expensive areas) where they are priced out of the rental market and cannot recuperate the associated costs of studying in Lisbon, Faro, Porto, etc. Move training classes outside of these cities or create a hybrid program for municipalities that are closer to affordable rents.
By S from Alentejo on 13 Jan 2025, 13:29
I love how everyone thinks the foreigners are the problem. Everyone forgets one thing. The government here is a stakeholder in the property prices. They get a percentage for every overinflated purchase. They have no interest in having property prices drop. I guarantee that the main reason of high property prices is induced by the local governments. They withhold building land, they make it hard to build, require absurd licenses, take forever to approve, etc. Speeding these things up is in no one's interest as #1 they earn a % on each sale and #2 most of them already own a home and it's their main and sole appreciating asset.
I myself have had the pleasure to have been stupid enough to buy a piece of urban land, just to find out the city not only demands basically an autobahn to be built on our dead-end access road, but also for me to pay for it and then to gift it to them (while paying maintenance for 10 years to come).
What do you expect foreign buyers to do? Deal with this BS? No way. I'd rather pay if I could, and not deal with this.
But hey, this is Portugal. So let's just keep saying "if you don't like it, don't live here!" and stick our heads in the sand while we blame all the foreigners.
By Richard from Lisbon on 13 Jan 2025, 14:40
I agree with "S" from Alentejo. Make the training courses available in country areas.
Also, the Govt should do "roadshows" in eastern european countries, (as well as countries where there is a desire among the population to be "European") to attract skilled construction labour. Probably these people will more easily integrate because they are of similar ideaology.
By L from Lisbon on 18 Jan 2025, 13:08