Porto Launches €3 Million Tender for Controlled-Cost Housing in Historic Center
The Porto City Council, operating through its municipal enterprise Domus Social, has officially announced a public tender valued at €3 million for a new construction project. The developer and city-led initiative, launched on Tuesday, 9 September 2025, is designated for the construction of 'controlled-cost' housing units. This new development will expand the existing residential complex on Rua das Carvalheiras, located in the heart of Porto's UNESCO World Heritage Historic Center. The project underscores the municipality's ongoing strategy to address housing pressures and increase the availability of affordable living options within the city's core. The public tender invites construction firms to bid on the project, with a submission deadline of 9 October 2025.
The project specifications, outlined in the official procedure documents accessed by the Lusa news agency, detail the construction of two new buildings. These structures will be three stories high and will collectively house twelve new residential units. The larger of the two buildings is planned for the highest elevation of the site and will contain six two-bedroom (T2) apartments on its upper floors, with the ground floor allocated for resident parking. The second building, situated in the central part of the complex, will feature a mix of four one-bedroom (T1) and two two-bedroom (T2) apartments. Its ground floor is designed to include twelve individual storage units, a shared laundry facility, and a dedicated area for bicycle parking, promoting modern urban living standards. The total estimated value for the construction contract is precisely €3,000,315.00, with a mandated completion period of 480 days from the start of the works.
This construction tender is a key component of a much larger, multi-faceted housing strategy being implemented by the Porto municipality. The city is actively pursuing public-private partnerships and direct investments to bolster its housing stock. In a related move on Monday, 8 September, the City Council approved a promissory contract with a private entity to develop 195 new housing units near the Mercado Abastecedor in the eastern parish of Campanhã. These homes are specifically earmarked for the city's affordable rental program. Furthermore, the upscale Boavista district is set to receive 100 new homes as part of the major urban requalification of former railway lands, a project that also includes the construction of a new El Corte Inglés department store. These initiatives reflect a comprehensive approach to urban development across different parts of the city.
The financing for these projects is diverse, involving municipal funds, state support, and private investment. The build-to-rent project with the Ageas Group, for instance, will deliver 124 affordable homes, demonstrating a collaborative model to tackle the housing shortage. Separately, a massive €21.2 million public tender was launched by Domus Social for the rehabilitation of vacant municipal properties across numerous city neighborhoods, aiming to bring derelict units back into the housing supply. This focus on both new construction and renovation highlights a dual strategy to maximize available housing resources. The investment in the Historic Center, in particular, is crucial for maintaining a vibrant residential community in an area facing significant tourism pressure.
The regulatory framework is also a focus of the city's administration. The Porto City Council recently passed a motion to request an 'urgent review' of the national 'Zero Licensing' regime from the central government. The city's leadership is seeking to regain more municipal control over property use designations, a move aimed at better managing the balance between residential housing and other uses, such as tourism accommodation. This political dimension shows the city's determination to use all available tools, from construction to regulation, to shape a more sustainable and accessible urban environment. These concerted efforts are poised to have a lasting impact on the city's development and its real estate market dynamics in the years to come. Monitor new development opportunities at realestate-lisbon.com.
