Source: Adobe Stock Author: Redaction Lisbon expands its affordable housing supply Lisbon City Council (CML) will move forward with the construction of a new affordable housing building near Jardim da Estrela. The project includes 11 municipal homes, helping to increase the supply of housing for families seeking more affordable living solutions. The building will be constructed on a currently vacant plot on Rua do Jardim à Estrela and is part of the Dispersed Building Intervention Plan, which aims to regenerate urban spaces and transform them into new housing opportunities. New building will include 11 homes The future building will have three floors and include different housing types, meeting a variety of needs. It will feature studio apartments (T0) and two-bedroom apartments (T2), distributed across the three floors, as well as technical areas, storage rooms and support facilities. The project will be awarded through a public tender, with a base investment of more than €1.4 million, plus VAT at the applicable legal rate. The expected construction period is 515 days, with completion depending on the various stages of the procurement and construction process. More housing to meet demand The construction of this new affordable housing building represents another investment in expanding municipal housing in Lisbon. Increasing the supply of homes remains one of the citys priorities in response to strong housing demand. In addition to providing new homes, the project will regenerate a previously unused site, promoting urban renewal and making better use of municipal assets. With new affordable housing projects, Lisbon aims to expand the options available to residents facing difficulties in accessing housing, while responding to the need for more affordable housing solutions adapted to current market conditions.
Source: Adobe Stock Author: Redaction Fund supports families in housing vulnerability The Housing Emergency Fund (FEH) will support households in situations of housing vulnerability, including tenants who may lose their home due to rent increases or the termination of their tenancy agreement. The measure aims to provide social support for situations involving the imminent loss of housing, regardless of the date or type of tenancy agreement. The support is part of the rental reform and the new rules applicable to contracts signed before 1990 . For tenants under the age of 65 with annual incomes of up to €64,400, contracts will transition to the New Urban Lease Regime (NRAU), with rents remaining unchanged for five years before they may be updated. New rules for older tenancy agreements For households with annual incomes above €64,400, contracts will also transition to the NRAU, allowing rents to be updated based on the propertys Taxable Asset Value. Tenants aged 65 or over, as well as people with a disability of 60% or more, will remain protected under the previous regime, regardless of their income. The Government estimates that there are currently between 30,000 and 50,000 older tenancy agreements, with the majority still having monthly rents below €200. Support begins in 2027 The Housing Emergency Fund is expected to come into force on 1 January 2027, following the publication of regulations defining the eligibility criteria. The planned support corresponds to one IAS per month, for six months, for households meeting the established conditions. According to the Government, the fund will have no maximum number of beneficiaries, ensuring support whenever eligible families are in situations of housing vulnerability. The scheme will be managed by the Institute for Housing and Urban Rehabilitation (IHRU), which will be responsible for providing a swift response to cases of greatest need.
Source: Adobe Stock Author: Redaction Capital gains exemption excludes construction for rental The capital gains tax exemption created to encourage residential letting does not apply to the purchase of land or the construction of homes intended for the rental market. The clarification was provided by the Portuguese Tax Authority (AT), which considers that the tax benefit only covers the acquisition of existing properties. The interpretation follows a request submitted by a taxpayer who intended to sell a property and reinvest the proceeds in the purchase of land and the construction of a detached house exclusively for residential letting. The AT concluded that this situation does not meet the conditions required to benefit from the capital gains tax exemption. Scheme only applies to existing properties The scheme came into force to encourage the supply of rental housing and provides for the exemption from capital gains tax on property sales carried out between 2026 and 2029, provided that the proceeds are reinvested in the purchase of another property intended for residential letting. To qualify for the measure, the reinvestment must meet several requirements, including the purchase of a property located in Portugal, intended for residential letting and with a monthly rent that complies with the legal limits currently in force. The investment may be made within the 24 months preceding or the 36 months following the sale of the property. Difference from main residence rules According to the Portuguese Tax Authority, the legislation clearly distinguishes this scheme from the one that applies to a main residence. Under the latter, the law allows reinvestment in the purchase of land and the construction of a home, a possibility that was not included in the new tax benefit for residential letting. For that reason, the tax authorities consider that the concept of acquiring property used in the law only covers existing buildings, excluding land purchases and construction costs. Tax benefit requires compliance with the rules In practice, anyone who sells a property and uses the proceeds to buy land and build a house for rental purposes will still be liable to pay capital gains tax. To benefit from the exemption provided by law, the reinvestment must be made in the purchase of an already-built property and comply with all the conditions established under the new tax scheme.
Source: Adobe Stock Author: Redaction DECO and IHRU strengthen support for beneficiaries DECO and the Institute for Housing and Urban Rehabilitation (IHRU) have established a partnership to improve the support provided to beneficiaries of the Extraordinary Rent Support. The initiative aims to make access to information easier and assist families facing difficulties related to this support by providing free guidance through several support channels. The objective is to clarify doubts, reduce uncertainty and ensure that beneficiaries understand the eligibility criteria, procedures and their rights. Clarifying the rules and how the support works The new service comes after difficulties were identified in accessing and maintaining the Extraordinary Rent Support. In some cases, interruptions to the support or processing errors may increase the burden of rent on the household budget and make it harder to manage other essential expenses. The partnership also aims to address the lack of information about the programmes rules, an issue that particularly affects the most economically vulnerable families. The service will allow beneficiaries to check their individual situations, clarify eligibility requirements, verify support calculations, understand the documentation required and the procedures to follow whenever complaints or repayment requests arise. Free support available through several channels As part of this collaboration, DECO will provide specialised support through local authorities with cooperation agreements, Housing and Energy Desks, the associations offices and its regional branches. The service is also available by telephone and email. Through this initiative, DECO and IHRU aim to make the Extraordinary Rent Support more accessible, helping beneficiaries resolve issues more quickly and providing simpler access to information and the support mechanisms available.
Source: Adobe Stock Author: Redaction Government says tenants remain protected The Government considers that the changes introduced to the New Urban Lease Regime (NRAU) do not reduce tenant security. According to the Secretary of State for Housing, the changes were limited and aimed to adjust certain rules without fundamentally altering the functioning of the rental market. The Government argues that the new measures seek to create a more balanced framework while also increasing landlords confidence to place more properties on the rental market. New rules change evictions for non-payment Among the main changes to the NRAU is the reduction of the deadline for starting eviction proceedings due to unpaid rent. The procedure can now begin after two months of non-payment, instead of the previous three. The new regime also establishes rules for repeated payment defaults. Whenever rent is paid eight or more days late on several consecutive or non-consecutive occasions within the legal timeframes, the landlord may also initiate eviction proceedings. Transition keeps contracts protected The Government stresses that the new regime continues to protect tenants considered more vulnerable. The transition of contracts to the NRAU applies only to certain tenants, taking into account criteria related to age and income. In addition, for contracts covered by the transition, rent will remain unchanged for a period of five years before the new rules are applied, allowing for a gradual adaptation to the new legal framework. Government seeks balance in the rental market The Government argues that the reform aims to reconcile the interests of landlords and tenants by promoting a more stable and predictable rental market. The objective is to encourage more homes to enter the rental market, helping to increase available supply. According to the Government, the different reactions from landlords and tenants associations show that the changes seek a balance between both parties, without exclusively favouring either side of the rental market.
Source: Adobe Stock Author: Redaction Rise in housing rents According to the National Statistics Institute (INE), housing rents increased by 5.2% in June compared with the same month last year, maintaining the same growth rate recorded in May. The data were compiled as part of the Consumer Price Index and reflect the evolution of rents paid per square metre. The increase was recorded across all regions of the country, although with varying intensities, confirming the upward trend in the rental market. Madeira records the biggest increase Among all regions, Madeira recorded the highest year-on-year increase in housing rents, with growth of 7.0%. Increases were also observed across the remaining regions, showing that rental prices continue to rise throughout Portugal. The published data show that pressure on housing costs remains evident across almost the entire country. Monthly comparison shows another increase Compared with May, housing rents rose by 0.4% in June, above the 0.3% increase recorded in the previous month. The Setúbal Peninsula recorded the largest monthly increase, with growth of 0.7%. Alentejo was the only region to record a decline in rents, with a variation of -0.2%. All other regions registered increases, reinforcing the upward trend in the rental market.
Source: Adobe Stock Author: Redaction Age and income determine rent updates The new rules for old tenancy rents introduce changes to the transition of contracts to the New Urban Lease Regime (NRAU). Rent updates will no longer depend solely on the annual inflation coefficients and will also take into account the tenants age and the households annual income. For contracts where the tenant is under 65 years old and the households annual income is below €64,400, the rent will remain unchanged during a five-year transitional period, with updates limited to the legal coefficients. For households with annual incomes above this threshold, the rent may be calculated based on 1/15 of the propertys Taxable Asset Value (VPT). New rules distinguish older tenants For tenants aged 65 or over, contracts will continue not to transition to the NRAU. When the households annual income is below €64,400, the rent will continue to be updated only according to the annual inflation coefficients, maintaining the previous regime. However, if the households income exceeds that threshold, the rent may also be updated up to the amount corresponding to 1/15 of the propertys Taxable Asset Value (VPT). As a result, income becomes a key factor in the evolution of old tenancy rents, even for tenants covered by greater legal protection. Changes may increase old tenancy rents The new framework organises contracts into four groups by combining tenants ages with household income. This division determines whether the contract transitions to the NRAU and which rent update model applies in each case. Compared with the previous regime, the new rules create a stronger link between the rent amount and the propertys Taxable Asset Value, reducing the exclusive role of inflation in updating old tenancy rents. The aim is to establish a differentiated model for each tenant profile, taking into account both their financial situation and age.
Source: Adobe Stock Author: Redaction What is the Housing Emergency Fund? The Government has approved the decree-law creating the Housing Emergency Fund (FEH), a new mechanism designed to support individuals and families who lose their home because they are unable to pay their rent or due to situations of domestic violence. The aim is to ensure a rapid housing response, preventing beneficiaries from being left without an immediate solution. The FEH is part of the package of changes to the rental framework and is intended to operate as a social safety net, ensuring that the State covers the costs associated with housing emergencies. Support can reach €2,300 per month The new fund provides direct, non-repayable financial support. For accommodation expenses, the amount may reach the value of one Social Support Index (IAS), currently set at €537.14. In cases of rehousing, support may reach €2,300 per month for a maximum period of six consecutive months. According to the Government, this mechanism will ensure rapid access to temporary or permanent accommodation, replacing the responsibility that, in many cases, previously fell on landlords. Who can benefit and how it works The Housing Emergency Fund is intended for tenants evicted due to unpaid rent and for victims of domestic violence who are forced to leave their home. It will be managed by the Institute for Housing and Urban Rehabilitation (IHRU), in cooperation with Social Security, the Tax Authority, the Treasury and Finance Agency and the Commission for Citizenship and Gender Equality. The Government expects support to be granted automatically within a maximum of ten days after the application is submitted, with the possibility of subsequent verification of the information provided. Support can be combined with other social benefits The Government has clarified that the Housing Emergency Fund can be combined with other existing social benefits, including those related to rental support. In addition, no maximum limit has been set on the number of beneficiaries or on the programmes overall budget, with the commitment to support all families that meet the eligibility criteria. With this new instrument, the Government aims to strengthen the social response to housing loss, alongside the recent changes introduced to the rental market.
Source: Adobe Stock Author: Redaction New rules for tenancy agreements The Government has approved a package of changes to the rental framework, which will now be considered by Parliament. The measures aim to make the market more dynamic by changing the rules for new tenancy agreements, older rents and eviction procedures. One of the main changes is the end of the 2% cap on rent increases for new tenancy agreements. With this change, rent levels will no longer be subject to that limit and will instead be freely agreed between landlord and tenant. There are also changes to the initial terms of tenancy agreements. Landlords will be able to request up to three months rent in advance instead of two, and security deposits will no longer have a legal maximum. In addition, landlords may refuse the automatic renewal of agreements by giving prior notice, while the minimum duration of one year and the maximum of 30 years remain unchanged. Faster evictions and support for tenants Another change to the rental market reduces the waiting period before starting eviction proceedings for unpaid rent. Instead of three months of non-payment, the process may begin after two months of overdue rent. The legislation also provides that, in cases of repeated non-payment, eviction proceedings may begin where rent is overdue by eight days or more on several occasions over a period of 12 or 18 months, under the conditions set out by law. To accompany these changes, the Government intends to create a Housing Emergency Fund to support vulnerable families. The support may be used to cover temporary accommodation or rehousing costs and will be managed by the Institute for Housing and Urban Rehabilitation (IHRU). Older rents also affected The changes to the rental framework also include new rules for tenancy agreements signed before 1990. Rent updates will depend on tenants age and household annual income. For tenants under the age of 65 whose income is below the defined threshold, rent will remain unchanged for five years. Above that threshold, rent may be updated based on the propertys Taxable Asset Value. Tenants aged 65 or over will continue to be protected from the transition to the New Urban Lease Regime, although rent may still be updated if household income exceeds the established limit. These measures aim to balance tenant protection with a more dynamic rental market.
Source: Adobe Stock Author: Redaction Gaia invests in housing for young people The Municipality of Vila Nova de Gaia is preparing to launch, by September, the first tenders for the construction of housing for young people and students living in the municipality. The aim is to increase the supply of affordable homes through a model involving private investment on municipal land. The strategy involves granting land under surface rights, allowing private developers to finance and build the projects. The properties will then be made available for rent, helping to address housing access difficulties faced by younger residents. Rents start at €460 In the initial phase, the new housing for young people projects will target young people and students living in the municipality. Planned rents start at €460 for two-bedroom apartments, rising to €560 for three-bedroom homes and €660 for four-bedroom properties. The municipality aims to deliver between 400 and 500 new homes, increasing the supply of affordable rental housing for middle-income families. Through this initiative, it intends to provide housing solutions that match the financial capacity of many households. Municipality aims to increase housing supply Alongside its commitment to housing for young people, the municipality also plans to build at least 500 social housing units by the end of the current term. The goal is to meet the housing needs of different segments of the population. By relying on private investment to develop these new projects, the municipality intends to expand housing supply without increasing municipal debt. The expectation is that this model will improve access to housing and respond to the growing demand across the municipality.
Source: Adobe Stock Author: Redaction Sines leads the rise in rents in Portugal House rents continue to increase across much of the country, making access to housing increasingly difficult. Data released by the National Statistics Institute (INE) show that only 18 of Portugals 308 municipalities recorded a fall in rents over the past year, while areas such as Sines, the Algarve and Madeira continue to experience significant increases. The most striking case is Sines, where rents have risen by 152% since 2020. Renting a 100-square-metre home now costs around €1,465, making the municipality one of the most expensive in the country, behind only Lisbon, Cascais and Oeiras. This pressure is driven by the regions strong industrial, technological and tourism sectors. The Algarve and Madeira remain among the most expensive regions The Algarve continues to be one of the countrys most expensive regions for renting a home. In 2026, more than half of the Algarves municipalities no longer allow a 100-square-metre property to be rented on the national minimum wage. In addition to Faro, Loulé, Albufeira, Lagos, Portimão, Lagoa and Vila Real de Santo António stand out. In the Autonomous Region of Madeira, Funchal and Santa Cruz also remain above the national average, reflecting the impact of tourism demand and the limited housing supply. Only 18 municipalities recorded falling rents Despite the overall upward trend, there are some exceptions. According to the INE, only 18 municipalities recorded a reduction in house rents over the past 12 months. These include Lagos, Castro Marim, São Brás de Alportel, Odemira, Alcácer do Sal, Moura, Serpa, Arganil, Santa Comba Dão, Vila Flor, Vila Nova de Foz Côa, Calheta and Horta. Even so, these decreases are isolated cases and do not alter the national trend of rising rental prices. Market remains under pressure, but growth slows in major cities Although the median value of house rents increased by 8.8% between March 2025 and March 2026, the pace of growth slowed in 17 of Portugals 24 municipalities with more than 100,000 inhabitants. Lisbon and Porto remain among the countrys most expensive rental markets, but rent pressure was lower than the average recorded over the past decade. By contrast, municipalities such as Guimarães, Gondomar, Vila Nova de Famalicão, Almada, Leiria, Coimbra and Oeiras recorded an acceleration in prices. The data show that the rental market continues to be marked by significant regional differences. While some areas are showing signs of stabilisation, regions such as the Alentejo coast, the Algarve and Madeira continue to record some of the largest increases in house rents, reflecting the growing difficulty many families face in accessing housing.
Source: Adobe Stock Author: Redaction INE resumes rental statistics The National Statistics Institute (INE) has resumed publishing local housing rental statistics after several months of suspension due to updates to the information provided by the Tax and Customs Authority (AT). The new statistical series now includes a broader range of tenancy contracts and introduces methodological changes that improve the quality of the information. Among the new features is the inclusion of all contracts with amendments recorded during the reference month, as well as new data relating to contracts and their respective landlords. During the first three months of 2026, the median rent for new tenancy agreements stood at €9.46 per square metre, up 9.1% compared with the same period a year earlier, while the number of new contracts increased by 0.7%. New methodology expands data coverage The updated methodology changes the way contracts are processed by including cases that were previously excluded, such as certain subletting agreements, and by extending the range of rents analysed to €6,000 per month. New criteria have also been introduced to exclude contracts that do not represent the standard housing market. Thanks to these changes, the number of contracts analysed has increased by around 50% nationwide. Despite this significant increase, the INE states that median rental values remain broadly consistent with the previous series, ensuring that market trends remain comparable. Data will now be published quarterly Another major change is the move to quarterly publication of the statistics, replacing the previous six-month schedule. In addition, the information now includes new indicators segmented by landlord and tenant characteristics, as well as property type, allowing for more detailed analysis down to NUTS III regions and municipalities with more than 100,000 inhabitants. The publication of these figures marks the end of the statistical interruption that began in October 2025, restoring an important set of indicators for monitoring the rental market and supporting housing policy decisions. Importance for the property market The resumption of rental statistics improves transparency in the rental market and provides valuable information for households, investors and public authorities. Access to updated data makes it possible to monitor price developments, identify market trends and support decision-making within the housing sector.
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