The government led by Luís Montenegro asserts that ensuring “quality housing for everyone” is a key priority, announcing a new policy for the housing sector with multiple measures under the ‘Building Portugal’ initiative.
“Ensuring quality housing for everyone is a top government priority. To address the current crisis, the Government’s Program outlines a new housing policy focused on significantly increasing the supply — public, private, and cooperative — simplifying licenses, and restoring confidence in the rental market,” stated an official announcement.
The strategy is described as based on an integrated response involving the State, municipalities, cooperatives, and private entities, with a special focus on construction, rehabilitation, and sector activation.
The goal is to curb price increases, promote new housing projects, and facilitate access to homes for those who live and work in Portugal, according to the statement.
The Main Measures
The government outlines the following key measures:
- “Construction, Rehabilitation and Acquisition of 59,000 houses.
- Private and cooperative partnerships in vacant State properties;
- New exceptional and temporary regime accelerating private and cooperative projects, with reduced taxes and fees;
- Priority urban expansion zones with urban rehabilitation societies and rapid infrastructure execution, as planned in the Parque Cidades do Tejo project; Deep review of urban licensing, simplifying processes. Simpler and more effective;
- New rental policy to restore confidence, attract investment, and ensure legal security;
- More affordable housing through financing lines and incentives for the build-to-rent model;
- Usage of vacant or underutilized public properties to quickly increase the housing supply;
- Transfer of scattered properties to municipalities for local rehabilitation and rental projects;
- Modernization of the construction sector, focusing on innovation, industrialization, and new technologies (like BIM);
- Review of public rent support to reach those in need more quickly.”
Through these measures, the government aims to “ensure housing solutions for all generations — young people, families, and the elderly — in cities and high and low-density areas.”
Following the announcement of measures under the Government Program, the Portuguese Association of Real Estate Developers and Investors (APPII) praised the enhancement of housing supply, accessible rentals, and tax review but warned of excessive regulation and unclear implementation.
In a statement, the association noted “significant progress in proposed guidelines” but stressed the “need for an effective implementation model, shared with industry stakeholders and free from bureaucratic barriers that historically have impeded responses to the housing crisis.”
Prime Minister Luís Montenegro announced today that the regulation of the emergency housing fund, proposed by Livre in the 2024 budget, will proceed “in a few weeks,” and admitted “more restrictive” rules for online gaming advertising.
Lusa | 12:00 – 17/06/2025
