Government to Sell 16 Public Properties to Finance Housing Policies
The Portuguese Government has officially mandated the sale of 16 state-owned buildings and land parcels, currently classified as vacant or underutilized, to generate funds for public housing programs. The resolution, published in the Diário da República this Thursday, specifies that the assets are located in Lisbon, Porto, Póvoa de Varzim, Felgueiras, Marco de Canaveses, and Matosinhos. This action follows a preliminary announcement made in September during a council of ministers session dedicated to the national housing strategy, which initially detailed nine properties exclusively in Lisbon. The complete list now confirms the inclusion of properties within the Porto district, expanding the initiative's geographic footprint.
The policy's objective is to divest assets no longer needed by the State or its real estate management entity, ESTAMO – Participações Imobiliárias. The diploma explicitly states that the proceeds from these sales must be allocated to financing public housing policies, whether the properties are repurposed for residential or non-residential use. This move is part of a broader strategy to tackle housing shortages and could present interesting scenarios for those following market intelligence and analysis.
The government has set a clear timeline for this initiative. All sale procedures are required to be initiated by the conclusion of the first quarter of 2026, with the overarching goal of finalizing all transactions by the end of that year. To ensure fair market value, the base price for each asset will be established by a joint order from the ministers of Finance and Housing, based on valuations from a minimum of two independent and reputable assessment entities. This process is crucial for anyone considering the investment risks associated with public tenders.
For properties still in use by public administration services, the resolution includes a transitional clause allowing for their continued, cost-free occupation until the end of 2027. This provision is designed to facilitate an orderly relocation of government functions. A significant portion of the Lisbon properties became available following the consolidation of various ministries and public entities into the new Campus XXI complex.
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The portfolio of assets in Lisbon is extensive, including the prominent former headquarters of the Council of Ministers. It also features buildings previously occupied by the Directorate-General for Higher Education, the Directorate-General for Economic Activities, and the General Secretariat of the Ministry of Health. Furthermore, a substantial plot of land in Quinta das Conchinhas is on the list, where the Institute for Housing and Urban Rehabilitation (IHRU) has already planned an urbanization project comprising 168 residential units and over 4,000 square meters of commercial space.
Outside of Lisbon, the assets include three land lots in Fraião (Beiriz), Póvoa de Varzim; the Quinta de Sergude property in Sendim, Felgueiras; and the “Bouça das Cruzes” land in Valdecidos, Marco de Canaveses. In the municipality of Porto, properties on Rua do Cerco and Rua de Tirares in the Campanhã parish are slated for sale. Finally, in Matosinhos, buildings on Rua de Carlos de Carvalho and Rua de Roberto Ivens will also be placed on the market.
This strategic divestment by the state represents a significant event in Portugal's real estate sector, directly linking public asset management to the pressing need for housing solutions. Understand policy impacts on your Portugal property plans at realestate-lisbon.com.