The housing market is facing growing challenges throughout the country — and the Autonomous Region of Madeira is no exception. With house prices constantly rising and demand far exceeding supply, access to housing has become increasingly difficult for residents, especially young people, families, and workers with average incomes.

Over the years, cooperatives have emerged both in Portugal and abroad as an alternative for affordable housing. It was in this context that Atlantidomus – Atlantic Affordable Housing Cooperative – was created in Madeira.

Founded in 2024 and currently with 83 registered members, this cooperative is based on the principles of social and solidarity economy, with members playing an active role in creating housing solutions through a transparent and community-based model, as Pedro Paixão explained to idealista/news.

“The cooperative always seeks to align itself with public policies because we don’t want to swim against the tide. We are part of the solution, not the problem,” he emphasized.

The head of Atlantidomus’ management, who details the cooperative’s mission in this interview, also speaks about housing challenges and the opportunities that arise for those seeking alternatives to the traditional market.

What is the objective of Atlantidomus? Why did you think it was important for the Madeira region?

Two years before founding the cooperative, we had already identified a growing difficulty in accessing housing — something that happens not only in our region but across the country.

We realized that the most affected group was the middle class, although today it’s not even easy to define what “middle class” means. Incomes have stagnated, purchasing power has fallen, and at the same time, there’s external competition from visitors and investors, which drives house prices up. Therefore, alternatives are necessary.

Is the cooperative aimed at local residents?

Yes, the goal is to create housing solutions for residents of the Autonomous Region of Madeira, on a non-profit basis. The homes are exclusively for permanent residence. A foreign investor, for instance, cannot buy to rent, as the cooperative’s rules and statutes do not allow it.

Furthermore, the deed includes a clause stating that the member cannot sell or give another use to the property for a minimum of 10 years. The cooperative has the right of first refusal, and the purchase price is calculated using a legal formula. Therefore, there is no room to distort the cooperative’s objectives.

What are your main challenges in implementing the projects?

There are two main challenges: first, finding the land; second, moving forward with construction. With the current high cost of land, affordable housing projects often become unfeasible. The more accessible the land, the easier it is to make the homes affordable.

We have been looking for land through public and private entities, often with reversion rights, and we are in dialogue with municipal councils. One example is Porto Santo, where the local authority is acquiring an 11,000-square-meter plot for cooperative housing.

Our goal is to create housing solutions for Madeira residents, without profit, and only for permanent residence. A foreign investor, for example, cannot buy to rent, as the cooperative’s rules and statutes prohibit it.

In the past, land was granted under surface rights, but that made it difficult to obtain credit. Now, the cooperative model solves that issue. Porto Santo, in fact, faces greater challenges than Madeira due to its “double insularity”: construction is more expensive, local companies are scarce, and materials must be transported. Even so, we want to establish a presence because Porto Santo residents deserve the same housing opportunities as those in Madeira.

Do you already have concrete numbers for how many homes you’ll deliver by the end of this year?

Not yet this year, but we have a strategic plan until 2028/2029. At the public presentation of that plan, around 250 to 260 people applied to become cooperative members. The room was full — even people were standing outside. On the one hand, it was rewarding to see our work recognized; on the other, it was disheartening, as we realized the housing need is greater than we imagined.

And how do you define your goals within this plan?

We define them realistically and concretely. By the end of 2027, we aim to complete two hubs — Hub A and Hub B — representing around 70 homes. However, we don’t have magical solutions and don’t promise the impossible. We prefer transparency: 70 homes in two years is a serious, achievable, and realistic goal. The process is long — it involves architectural design, engineering specialties, municipal licensing, construction, certifications, and condominium regulation.

In addition, if we win the public land tenders launched by the Madeira Housing Institute (IHM), we could create another hub — Hub AB+ — with around 50 homes. By 2028, we also plan to develop Hub C and Hub D, adding another 60 homes.

How are the homes allocated? Are there priority criteria?

We don’t assign homes based on someone’s “eye color” or age. There are objective criteria — namely, membership seniority, family size, current housing conditions, socioeconomic situation, financial capacity, degree of disability, young couples (up to 35 years old), and academic qualifications.

The last point is important. We believe young people who invest many years in higher education should receive a small advantage because their knowledge benefits society as a whole. These are people who enter the labor market later but contribute significant value to the social contract. We want them to feel that their investment in education was worth it.

And what kind of support do you receive from the Regional Government?

The cooperative always seeks to align with public policies because we don’t want to swim against the tide. We are part of the solution, not the problem. We recognize there has been a huge disinvestment in housing over the last 25 to 30 years — not only in Madeira but throughout Portugal. Now, the government is trying to recover through structural measures, but it’s difficult to solve in a short time problems that have accumulated over decades.

The IHM has done important work: housing programs, public land tenders, and home distribution. It doesn’t solve everything, but it helps. Cooperatives are not the complete solution, but they are part of it — provided they work together with the government and municipalities.

And what is your relationship with the municipalities of Madeira?

From the municipal side, the process is more complicated. Urban planning, licensing, and bureaucracy are slow. We would need a “green lane” for cooperative projects because these are homes for people in difficult situations. We are not asking for illegalities — just clarity, objectivity, and speed.

Unfortunately, we sometimes wait months for a license approval. That delays everything. We believe there should be specific regulations for cooperative processes, with defined deadlines. Atlantidomus will align itself with public policies whenever it benefits its members.

How can cooperatives accelerate housing projects without depending on these public processes?

It’s important to remember that cooperatives, associations, and charitable organizations (IPSS) are part of the social sector. In our cooperative, we work voluntarily to address a problem that affects everyone. Municipalities and the Government must acknowledge that.

We want to be part of the solution, but we also need respect and clear rules. Municipalities should create specific licensing regulations for cooperatives. It’s not about “glancing quickly” at a project but about avoiding absurd bureaucracy: repeatedly requesting more documents, in different formats, sending registered letters, and asking for the same information again — delaying everything for months or even years.

How do you ensure that cooperative housing prices remain affordable for the middle class in the long term?

Defining “middle class” today is not easy, but our goal is for cooperative homes to cost 30% to 40% less than market prices. We don’t yet have final numbers, as they depend on the projects and construction costs, but based on our simulations, a three-bedroom apartment (T3) should not exceed €250,000–€280,000, and a two-bedroom (T2) should range between €240,000–€250,000.

The price includes land costs. If the land is provided for free, the price decreases by about 10% to 15%, but not by half — because land does not represent 50% of the investment. These are indicative calculations, but they show that we are working with realistic and sustainable figures.

What advice would you give to those looking for affordable housing?

There are people who want to live independently but can’t because they have no housing alternative; young people who, at 35, still live with their parents, without privacy or independence. This has emotional, psychological, and social impacts.

Our first piece of advice is to register with the cooperative. If we have 400 applicants, we can’t promise a home for everyone. But for those who meet the criteria and are truly in need, this is a concrete solution.

Another recommendation is to try to improve one’s quality of life and income, although we recognize that the market is limited and average salaries are increasingly low. The middle class is disappearing, and our members reflect that reality: they are engineers, doctors, lawyers, economists, teachers, managers, nurses — people with higher education who were traditionally considered stable middle class. Today, many can no longer afford to buy a home in the market. That clearly illustrates the scale of the problem.