Portugal requires additional properties to be constructed and renovated in order to create a true rental market, according to the president of the Portuguese Confederation of Construction and Real Estate (CPCI), Reis Campos.

"It is necessary to build and renovate more properties to create a true rental market. [Which] will only be possible through a consistent stimulus to private investment," he said during the the opening session of the 11th edition of the Lisbon Urban Rehabilitation Week (SRUL).

Campos went on to add that Portugal needs to "have construction levels in the order of 40,000, 45,000 homes per year."

This refers to prices set for sales that are within reach for the majority of Portuguese citizens, essentially meaning homes that are affordable, The Portugal News reports.

"Our country in the last decade built 15,000 homes per year and in the previous decade, that is, from 2001 to 2011, it built 68,000 homes per year. Now we are building 30,000… On the other hand, in terms of rehabilitation, from one decade to the next, we had another 250,000 buildings in need of rehabilitation," Campos continued.

The CPCI president attributed the problem to the heavy tax burden in Portugal's real estate and construction industry and stressed it still "needs 80,000 workers".

"In tax terms, VAT being 23% does not help. The new government has no choice but to apply a 6% VAT for all rehabilitation. And even construction, particularly that intended for affordable housing, should have VAT at 6% [at least] for one period. The country gained from this and the investor felt there was confidence. It would be an incentive for investors to build," he added.