European Commission and EIB Announce Plan for 1.3 Million New and Renovated Homes Across EU
The European Commission is collaborating with the European Investment Bank (EIB) on a large-scale plan to facilitate the provision of 1.3 million new or renovated homes throughout the European Union. The announcement was made on Thursday by the President of the European Commission, Ursula von der Leyen, who characterized the ongoing housing crisis as a significant "source of anxiety" for many Europeans. The policy is designed to address the widespread challenges of housing affordability and availability that have intensified in recent years.
Speaking at the EU Covenant of Mayors 2025 ceremony in Brussels, President von der Leyen detailed the scope of the initiative. "We are working with the European Investment Bank to support local efforts to provide 1.3 million new or renovated homes across Europe," she stated. The policy objective is to alleviate the pressures on citizens for whom housing has become a primary cause of financial and personal distress. "For too many Europeans today, home has become a source of anxiety [as] it can mean debt or uncertainty," von der Leyen remarked, citing examples of students abandoning studies due to a lack of accommodation and essential public service workers being unable to afford housing in the communities they serve.
The implementation strategy for this initiative, titled the European Plan for Affordable Housing, will be anchored in local realities while being driven by a unified European effort. A central element of the plan involves adjusting the EU's state aid regulations to provide member states and municipalities with greater latitude to support affordable housing projects. "We will allow more room for affordable housing under our state aid rules, giving communities the flexibility they need to build more affordable homes," the President concluded. This adjustment is a critical component, as it directly addresses the legal and financial barriers that often hinder public investment in housing. Stakeholders can find more information on the regulatory and legal frameworks that govern such projects.
Need Expert Guidance?
Get personalized insights from verified real estate professionals, lawyers, architects, and more.
The European Commission has specifically recognized the acute challenges within Portugal's housing market and expects this new plan to provide a structured response. The framework will encompass dedicated financing mechanisms, the aforementioned state aid flexibility, and guidance on regulating the short-term rental market, often cited as a contributing factor to housing shortages. Although housing policy is formally a competence of the individual Member States, the cross-border nature of the crisis has necessitated a coordinated EU-level response. The housing crisis is particularly severe in countries like Portugal, where significant increases in property prices and rental costs have made affordable housing inaccessible for a growing segment of the population, especially young people and families with lower incomes.
This initiative builds upon previous actions. In March of the preceding year, the EIB Group and the European Commission launched a related EIB Action Plan to support housing. That plan introduced a new, centralized portal for housing advisory services and financing, and it projected investments totaling approximately ten billion euros over the subsequent two years. The new plan for 1.3 million homes represents a significant scaling-up of these efforts, reflecting the increasing urgency of the situation. The focus on both new construction and renovation also aligns with the EU's broader goals related to energy efficiency and urban regeneration, which are relevant for firms specializing in green building.
The political and economic implications of this plan are substantial. By directly intervening in the housing market, the EU aims to mitigate social inequality and support economic stability. The success of the plan will depend on effective collaboration between EU institutions, national governments, and local authorities. The allocation of funds and the practical implementation of projects will be closely monitored by market observers and the public. Understand policy impacts on your Portugal property plans at realestate-lisbon.com.