APEGAC (Portuguese Association of Condominium Management and Administration Companies) considers that “it is urgent to understand the state of the national real estate assets and how this impacts the value of families’ housing patrimony,” and advocates for tax incentives for conservation and maintenance works.
In the post-election period and during the formation of a new government, APEGAC warns of the need for greater conservation and maintenance of Portuguese buildings, especially in the context of the housing crisis.
“The lack of maintenance and inadequate management put citizens’ safety and finances at risk,” warns the association, stating that “the housing crisis in Portugal is one of the major concerns for Portuguese people and one of the priorities highlighted by political parties during these legislative elections. It is urgent to assess the condition of the national real estate assets and understand how this affects the value of families’ housing patrimony.”
APEGAC therefore calls on the new government to adopt “a more effective and structured approach to the conservation of real estate assets,” warning that “building management under co-ownership has been neglected, exposing condominium owners to avoidable risks and compromising the buildings’ durability.”
It is worth noting that around 5 million people live in condominiums in Portugal. According to the 2023 census, more than a third (35.8%) of buildings in Portugal — approximately 1,278,826 buildings — are in need of repairs. Of these, 780,126 require minor repairs, 335,599 need moderate repairs, and 163,101 need major repairs. For the association, “these numbers highlight the severity of the housing crisis in the country, where poor maintenance and inadequate management endanger both the safety and financial stability of citizens.”
In this context, professionalized and regulated condominium administration is an urgent solution for horizontal property buildings to ensure proper maintenance and asset appreciation, while preventing conflicts resulting from poor management.
“Managing co-owned buildings is a complex task that requires technical, legal, and economic knowledge. The lack of proper training and regulation has allowed unqualified administrators to operate, which further exacerbates issues related to maintenance and conservation, when they could instead promote preventive maintenance,” APEGAC notes.
The association’s proposals for more professionalized condominium administration include preventive planning and maintenance, by creating structured maintenance plans with projected interventions and costs, thus reducing the need for unexpected and more expensive repairs.
It also calls for functional and financial management, including the implementation of clear and transparent financial processes, to ensure the payment of common expenses and prevent cases of embezzlement or conflict among co-owners.
Improving this management also involves hiring professionals with specialized training in maintenance, law, economics, and management, in order to enable the sector to operate in an integrated and regulated manner, preventing unprepared administrators from intervening.
APEGAC argues that the adoption of professional condominium administration is not merely a preventive measure, but a strategy to ensure that co-owned buildings are managed with the rigor and competence their complexity demands.
APEGAC has also long advocated for the implementation of tax incentives — such as VAT exemptions or the application of a reduced rate to all conservation and maintenance works, regardless of the percentage of materials versus labor — to encourage building conservation.
“This measure would have a significant impact in promoting building rehabilitation and increasing the value of real estate assets, ensuring that preventive conservation is financially accessible to condominium owners,” it concludes.
Source: Público
