Portuguese Government to Sell Nine State Buildings, Concede 14 Land Plots for Housing
The Portuguese government has approved the sale of nine state-owned buildings and the concession of fourteen plots of public land for the development of affordable housing through public-private partnerships (PPPs). This decision was announced following a Council of Ministers meeting dedicated to housing, where the government also formalized a €1.34 billion financing agreement with the European Investment Bank (EIB) to support the construction and renovation of 12,000 affordable homes.
The government's strategy involves two distinct approaches to leveraging state assets. The first is the direct sale, via public auction, of nine properties deemed non-essential for public use. Minister Miguel Pinto Luz stated, “There is heritage that makes no sense for us to have in the state's sphere, due to its geographical location or its potential for revenue maximization.” Among the properties slated for sale are several prominent buildings in Lisbon, including the former headquarters of the Presidency of the Council of Ministers in Campo de Ourique, the building of the General Secretariat of the Economy on Avenida da República, and the former Ministry of Education building on Avenida 24 de Julho.
The second part of the initiative involves the creation of a new PPP instrument for managing public property. Under this model, fourteen state-owned land plots will be made available to private partners through long-term concessions for the development of affordable housing. These properties will remain under state ownership. The public tenders for these concessions will be managed by Estamo, the state's real estate management company, while the affordable rental schemes will be overseen by the Institute for Housing and Urban Rehabilitation (IHRU).
The list of the fourteen land plots designated for PPPs includes seven locations in Lisbon (Quinta da Alfarrobeira, Estrada da Luz, former Campo das Salésias, Hospital Miguel Bombarda, Av. Elias Garcia, Travessa das Zebras, and the former Northern Military Maintenance complex). Additional plots are located in Amadora (Quinta da Falagueira, Casal do Louro), Porto (Viso), Almada (Quartel da Trafaria), Oeiras (Quinta da Cartuxa), Albufeira, and Faro. This geographic distribution indicates a nationwide scope with a strong focus on the Lisbon metropolitan area.
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This asset mobilization plan is a core component of the government's broader housing strategy, which aims to address the national housing shortage by actively involving the private sector. The government has stated that it is pursuing these partnerships “because it cannot do it alone,” signaling a clear intention to attract private capital and expertise to accelerate the delivery of housing.
The combination of direct asset sales and the launch of a large-scale PPP program for development represents a significant opportunity for real estate investors and developers. The initiative is expected to unlock a substantial number of new projects in key markets across Portugal, including Lisbon, Porto, and the Algarve, directly addressing the supply-side constraints of the housing market.
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