Government Announces Four-Point Plan to Stimulate Portugal's Housing Sector
The Portuguese government has announced a strategic four-part initiative aimed at addressing the country's housing challenges, Prime Minister Luís Montenegro confirmed this past Sunday. The policy package, set to be formally launched this week, includes measures to finance affordable housing, mobilize public assets, digitize property documentation, and reorganize state housing agencies. The announcement signals a determined effort to increase the housing supply and streamline market operations.
A central component of the plan is a new financing agreement with the European Investment Bank (EIB). On Thursday, September 4th, the government will sign a credit line for €1.3 billion specifically to increase the stock of affordable homes. This capital injection is intended to underwrite the development of 133,000 public housing units that are already part of municipal housing strategies across the country. Luís Montenegro stated that the state-owned development bank, Banco Português de Fomento, will be a key financial partner in these operations.
The government also intends to address the issue of vacant or underutilized state-owned properties. A new directive will compel all public bodies to report on the status of their real estate assets and provide justification for any properties not in use. According to the Prime Minister, assets without a clear purpose or project will be transferred to the state real estate company, Estamo, for development, rental, or sale. “When there is no justification for the abandonment or disuse of the patrimony, it has to be made available to be taken advantage of, whether in the public or private sphere,” Montenegro remarked during the announcement in Castelo de Vide.
In a move towards modernization and efficiency, a unified digital property file will be introduced. This digital “identity card” will consolidate all certified documents for a property, including the energy performance certificate, maintenance plans, and building permits. The government's long-term vision is to integrate the financial and land registry records into this single file, thereby reducing the administrative burden on citizens and businesses when transacting property.
The final measure involves a clear redefinition of responsibilities within the state's housing administration. The Institute for Housing and Urban Rehabilitation (IHRU) will be designated as the primary body for national coordination, regulation, and planning. The execution and management of public housing stock will be decentralized to local municipalities. The Prime Minister assured that these municipalities will receive the necessary technical and financial support to manage these assets effectively.
This comprehensive policy initiative is a direct response to the growing public pressure for solutions to housing affordability and availability. The measures reflect a dual approach of increasing the supply of accessible housing while also improving the structural efficiency of the real estate market. The involvement of the EIB and the focus on activating dormant state assets are seen by market analysts as significant steps with the potential to impact construction and development activity nationwide.
The plan has been presented as a core part of the new government's agenda to reform the state and remove bureaucratic obstacles. Officials from the Ministry of Housing stated that these policies are designed to create a more dynamic and responsive housing market that can better serve the needs of the population. The real estate sector is expected to react positively to the measures aimed at streamlining processes and creating new development opportunities.
The formal rollout of these measures is anticipated in the coming weeks, with the government expected to provide further details on the implementation timelines and specific operational guidelines for each of the four points. The success of this “new impetus” will be closely monitored by all stakeholders in the Portuguese property market, from developers and investors to families seeking housing.
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