Portugal secures €1.5 billion for 50,000 social homes

The Portuguese government and the European Investment Bank have agreed a new €1.5 billion credit line. The funds are intended to build or renovate around 50,000 social homes across the country that municipalities identified in their local housing strategies.

The parties signed the first €500 million tranche on 7 September. The homes will be financed through the 1.º Direito programme, managed by the Institute for Housing and Urban Rehabilitation. The programme is intended for people living in inadequate housing conditions who cannot afford suitable housing themselves.

The credit line will allow municipalities to carry out social-housing projects that were not included in the Recovery and Resilience Plan. The government says the financing offers lower interest rates, longer grace periods and more favourable conditions.

The new instrument adds to €2.8 billion already allocated through the state budget up to 2030 to expand public housing under the special regime of the 1.º Direito programme.