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There are tons (like, really many) of empty, closed rotting buildings in Lisbon. My assumption is the owners are waiting for prices to increase or simply demand

There are tons (like, really many) of empty, closed rotting buildings in Lisbon. My assumption is the owners are waiting for prices to increase or simply demanding unreasonably inflated prices until they find a buyer. I'd like to know the reasons for it. Anyway, whole blocks are empty. Heck, there is a large empty building directly next to the German embassy (and, ironically, part of the German embassy is also abandoned and empty even though it belongs to it). There is also a substantial number of new luxury apartment buildings in my area with apartments that appear to be empty. Whether they are owned yet or to be sold is hard to determine but you can see when nobody lives there.

stainforth 4y ago
Exactly. There should be a tax on vacancy. We've made the 1) mistake of turning a very special need like shelter into a commodity or security vehicle, and 2) this commodity the owner can "hold-out" on in that makes it violate the principles of economics that we all supposedly agreed upon from above that the market is the most fair and best solution for people.
- ginja 4y ago
  We already tax vacant property up to 12 times the regular tax when located in high demand areas[1] which includes all of Lisbon municipality. It's definitely had some effect as you see a lot less vacant property, but it unfortunately doesn't fix everything. [1]: https://dre.pt/dre/detalhe/decreto-lei/67-2019-122349221 https://dre.pt/dre/detalhe/decreto-lei/67-2019-122349221
jhugo 4y ago
Hard to understand why anyone thinks gentrification or foreign buyers/renters are the problem if this is the case. Put people in the houses you already have, and build some more if needed, and you will likely find the price drops. But perhaps the people with decision-making power are hoping the price continues to rise.
quonn 4y ago
Even more building were rotting before Portugal liberalized the market, because nobody would or could pay for renovations. The truth is that real estate is merely a reflection of wealth. Some of that wealth is earned by hard work that others are not willing to put in while other wealth is just inherited and some people work hard and smart and still stay relatively poor. Therefore we shouldn‘t judge so easily based on what someone has and go back to asking how it came about.

stainforth 4y ago

Exactly. There should be a tax on vacancy. We've made the 1) mistake of turning a very special need like shelter into a commodity or security vehicle, and 2) this commodity the owner can "hold-out" on in that makes it violate the principles of economics that we all supposedly agreed upon from above that the market is the most fair and best solution for people.

ginja 4y ago
We already tax vacant property up to 12 times the regular tax when located in high demand areas[1] which includes all of Lisbon municipality. It's definitely had some effect as you see a lot less vacant property, but it unfortunately doesn't fix everything. [1]: https://dre.pt/dre/detalhe/decreto-lei/67-2019-122349221 https://dre.pt/dre/detalhe/decreto-lei/67-2019-122349221

jhugo 4y ago

Hard to understand why anyone thinks gentrification or foreign buyers/renters are the problem if this is the case. Put people in the houses you already have, and build some more if needed, and you will likely find the price drops. But perhaps the people with decision-making power are hoping the price continues to rise.

quonn 4y ago

Even more building were rotting before Portugal liberalized the market, because nobody would or could pay for renovations. The truth is that real estate is merely a reflection of wealth. Some of that wealth is earned by hard work that others are not willing to put in while other wealth is just inherited and some people work hard and smart and still stay relatively poor. Therefore we shouldn‘t judge so easily based on what someone has and go back to asking how it came about.