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Portugal will fast-track its public housing programme and now plans to build 150,000 new homes by 2030, a major increase from the earlier target of about 59,000. The EUR 9-billion initiative aims to support low-income households struggling with soaring property prices and rents. Funding will come from EU recovery funds, the national budget and European Investment Bank loans. With public housing making up only 2% of Portugal's six-million home stock-one of the lowest shares in Europe-the government is also offering incentives for private landlords, including a reduced 10% rental income tax for lower rents. The move comes amid severe shortages, especially in Lisbon, where prices have surged dramatically.
Portugal has decided to fast-track its public housing development programme, with the government confirming an expanded target of 150,000 new homes by 2030. The initiative, valued at EUR 9 billion, has been designed to support low-income households bearing the brunt of escalating property prices and rental costs. Officials said the revised figure represents a substantial scale-up from the previous target of around 59,000 homes. Advertisement
Infrastructure Minister Miguel Pinto Luz noted that funding is expected from a mix of EU recovery mechanisms, the national budget, and loans secured through the European Investment Bank. He said the expanded programme reflects the scale of the challenge and the need for stronger intervention to stabilise the housing market.
Data from the National Statistics Institute showed that public housing accounts for only 2% of Portugal's six-million-unit housing stock. This is among the lowest shares in Europe, far below levels observed in countries such as Austria, Denmark, and the Netherlands, where social housing exceeds 20% to 30%.
Alongside increasing publicly built homes, the government is advancing fiscal incentives aimed at stimulating private sector participation. Landlords will be eligible for a reduced 10% income tax on rental earnings, instead of 25%, if they offer monthly rents below EUR 2,300. The minister suggested the measure could return as many as 300,000 vacant homes to the rental market over the medium term.
Portugal's housing crisis has been driven by a long-standing shortage of affordable stock, compounded in recent years by a rise in demand from overseas investors and affluent foreign buyers. The strain is most visible in Lisbon, where house prices have tripled and rents have more than doubled over the past decade, according to property data provider Confidencial Imobiliario.
Source - Reuters
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