Government to Concession State Properties to Create 10,000 Affordable Homes by 2035
The Portuguese Government has formalized a plan to make up to 10,000 housing units available for the affordable rental market by the end of 2035. The measure, part of a broader strategy to address the housing crisis, relies on conceding public properties to private entities. The rules for this new program of Public-Private Partnerships (PPP) were established in a Council of Ministers resolution published in the Diário da República on Friday, October 24, 2025.
The executive branch, led by Luís Montenegro, aims to place the “patrimony of the State at the service of housing.” As part of this initiative, 16 state-owned properties are slated for public auction, nine of which had already been announced in September. These properties may be acquired by private parties for either residential or non-residential purposes. In a parallel effort, the government will concession 14 public land plots, creating partnerships with private companies or public bodies like municipalities to develop them.
The official diploma specifies that the Strategic Program for the Development of Partnerships for Affordable Rent (Parcerias PAA) has the primary goal of increasing the supply of affordable housing throughout the country. This program is central to the government's housing policy, which has been a topic of significant political debate. For investors tracking policy changes, our blog on legal frameworks offers continuous updates.
To ensure the financial feasibility of these projects, the government announced it will “adopt the necessary diligences” to make the PAA Partnerships eligible for financing from the European Investment Bank (EIB). The government is also seeking support from other entities that provide favorable long-term financing conditions. The stated preference is for a model of direct financing to the private partner chosen through the public tender process, a mechanism intended to accelerate development.
This policy marks a significant step in mobilizing public assets to address market shortages. The involvement of private developers is seen as critical to executing these projects efficiently. Developers and construction firms interested in these opportunities can find relevant professional contacts on our constructors page.
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The list of properties to be concessioned includes assets across the country, with a significant concentration in areas with high housing demand. The success of the program will be measured by its ability to deliver the promised 10,000 homes and its impact on rental price stabilization. The long-term vision for this policy extends to 2035, indicating a sustained commitment to the housing sector.
This initiative follows several other government announcements aimed at the real estate sector, including changes to tax incentives for landlords and tenants. The combination of selling state assets and forming development partnerships reflects a multi-pronged approach to a complex issue. Further analysis of market trends can be found on our market insights page.
The government has not yet released the full list of the 14 land plots designated for concession, but official sources indicate that details will be made public in the coming weeks as the tender processes are prepared. The initial 16 properties for auction are expected to generate significant interest from the private sector, with proceeds potentially being reinvested into other public housing initiatives.
Understand policy impacts on your Portugal property plans at realestate-lisbon.com.