Tramway à Lisbonne by yannick le goff on 500px
This morning I stumbled upon a blog post by a Berlin-based venture capitalist (Ciarán O'Leary) talking about how Lisbon feels like the next Berlin. In other words, it feels like the next great European startup hub.
Here’s his reasoning:
The tech scene is organic – it happened on its own, came out of nowhere. That is much more fun and sustainable than any kind of political or targeted economic strategy.
There are a ton of constraints (funding, local talent base, etc.) so entrepreneurs need to hustle to make things happen. Hustle is good.
Berlin was an economic void, Portugal had a massive economic crisis and Lisbon sure isn’t letting that crisis go to waste.
Entrepreneurship has the real chance to be a center stage act, not a side gig. It’s everywhere.
The city is very, very cool. You just want to be here.
You can have a great life on a startup salary.
Everyone speaks english; everyone is welcoming and open. That matters a lot when you want to attract international talent and funding.
Of course, he’s not the only one calling Lisbon the next Berlin. The EU also named Lisbon “the most entrepreneurial region in Europe in 2015.” Isn’t it interesting what can grow out of economic crisis? See PIGS.
I also don’t think it’s a coincidence that Monocle held its first ever Quality of Life Conference in Lisbon. It’s a testament to O’Leary’s point above that, “You just want to be here.”
And while being “very, very cool” may not seem immediately relevant to creating a robust startup environment, it really is. It may be the most important point. It makes the city a magnet for talent.
Just the other day I was trying to explain Berlin to someone and I used a similar lexicon. I said: “It’s an unbelievably cool city. It bleeds hipness. You will love it.”
If you’re a city, that’s a great thing to be.
Monocle magazine is launching their first ever conference this spring in Lisbon and it’s dedicated to quality life in the world’s greatest cities. It’s going to take place Friday, April 17th to Saturday, April 18th, 2015.
You can click the image above for a video synopsis (there’s great urban eye candy), but if you don’t feel like doing that, here’s the text version:
MONOCLE invites you to a weekend of peerless hospitality, great debates and in-depth conversations about the forces shaping the world’s great cities. Join our editors, correspondents and key thinkers in discussing topics ranging from architecture to independent retail, city planning to national branding.
It sounds like a wonderful event and very much inline with some of the topics discussed here on Architect This City. If I had a conference budget that needed to get spent, I would be the first to sign up. If you’re interested, you can “register your interest” by clicking here. Tickets are €1,500.
I was catching up with a friend of mine over coffee this morning and he was telling me about his recent trip to Porto, Portugal. I’ve never been, but it’s fairly high up on my list of places to visit.
He was telling me about how beautiful the center of the city is and how it’s a UNESCO World Heritage Site. But he was also telling me how eerie it was to see so many abandoned and decaying buildings.
And part of the reason for this – I learned – is that up until fairly recently, Portugal had some incredibly onerous pro-tenant rent controls in place that dated back to the beginning of the 1900s.
In fact, they were so onerous that, by some estimates, roughly 150,000 households in Portugal were paying less than €50 per month in rent before the laws were changed!
Because of this, landlords in many cases could not, and cannot, actually afford to maintain their properties. Buildings were left to decay, and in some cases they were completely abandoned. That was their only option. And it led to a virtually non-existent rental housing market (according to the IMF).
Clearly, this is a problem. If you have a market distortion as serious as this one – where there’s virtually no incentive to invest – you’re on a highly unsustainable economic trajectory.
Which is why when Portugal received its bailout package from the International Monetary Fund and European Union following the 2008 financial crisis, it was asked to reform its rent control laws – which it agreed to do.
The hope was that the reforms would allow Portuguese landlords to charge more reasonable and market-oriented rents, as well as do other crazy things like evict tenants that don’t actually pay their rent. Not surprisingly, many fought the changes.
I don’t know precisely how these reforms have ultimately played out in the market over the past few years (if you do, I’d love to hear from you in the comments below), but I do believe that liberalization of the market was, and probably still is, needed.
While paying €5 a month for a 4 bedroom apartment in a desirable central neighborhood might be great for that one individual family, it’s not so great for the economy as a whole. And ultimately that comes around to impact even that household.
Image: Flickr