Government and EIB Announce €1.3 Billion Credit Line for 12,000 Affordable Homes in Portugal
The Portuguese government has formalized a significant financing agreement with the European Investment Bank (EIB) to fund the construction of 12,000 new homes under its national affordable rental program. The total credit line amounts to €1.3 billion, a joint effort designed to substantially increase the public housing stock and provide long-term rental stability for families across Portugal. This initiative aims to deliver rental units with prices contractually set below market rates, directly addressing the housing affordability crisis that has intensified in recent years. The financing structure provides municipalities with an extended timeline, allowing them until 2030 to complete their respective housing projects. This is a notable extension from the more aggressive June 2026 deadline previously established under the country’s Recovery and Resilience Plan (PRR), giving local governments more flexibility to plan and execute complex construction projects. The initial tranche of the funding, totaling €450 million, is set to be disbursed shortly, signaling the program's immediate launch. Miguel Pinto Luz, the Minister of Infrastructure and Housing, declared that tackling housing challenges is an "absolute priority for the Government." He further stated, "With this financing, we have another tool at the service of public housing in Portugal. These are twelve thousand more homes with affordable rents, at prices below market values, that we want to make available to families in our country as quickly as possible." Joaquim Miranda Sarmento, the Minister of State and Finance, also commented on the partnership, highlighting "the extraordinary role that, in these last 40 years, the EIB has had in the development of Portugal, financing and supporting hundreds of public and private projects, like this one we are celebrating today." The policy is expected to have a stabilizing effect on the broader rental market over the next decade by increasing supply. Understand policy impacts on your Portugal property plans at realestate-lisbon.com.