Madeira’s government has stated it aims to act as a regulator within the housing sector, promoting the construction of homes to be sold at prices as much as 30% under the market value.

“We are acting on the supply side in order to have a regulatory effect on the housing market because we will make houses available at a price around 30% below the market value”, stated the Secretary of Equipment and Infrastructure, Pedro Fino.

Fino was speaking on a visit to land in Funchal, where 55 homes are to be constructed within the Casa Própria Programme, which intends to promote housing via the construction regime at controlled costs, The Portugal News reports. 

The initiative includes a series of incentives granted to housing cooperatives and real estate developers for the construction and restoration of properties for sale at “prices adjusted to the effort rate of the middle class and young people at the beginning of their professional lives”. 

These incentives will permit the final purchase price to be as much as 30% under the market price, according to the regional executive. 

The Secretary of Equipment and Infrastructure went on to say that in regard to the 55 homes project, land will be given to a private developer for an investment of around €10 million, featuring a subsidised credit line and VAT reduction.

“We will also contribute 50% of the deposit [input value] to the buyer,” he added, signalling the average home price should be around €160,000.

Furthermore, Fino said a new project for the construction of 200 homes would shortly be unveiled by the executive within the Casa Própria initiative, also located in the Funchal municipality.