Photo: Adobe Stock Author: Redaction APPII remains on the Municipal Housing Council The Portuguese Association of Real Estate Developers and Investors (APPII) will continue to participate in Lisbon’s Municipal Housing Council (CMH), where it has been represented since 2012. The association intends to maintain the real estate sector’s contribution to the debate on housing and the challenges facing the municipality. Over the past 14 years, APPII has followed different terms and administrations of Lisbon City Council, bringing the experience of real estate developers and investors to the advisory body. This participation provides an opportunity to share knowledge about urban development and the challenges related to housing supply. The association considers the CMH an important forum for bringing together different entities involved in housing and promoting dialogue between the various stakeholders in the sector. New term brings together eight entities APPII’s position comes after Lisbon City Council approved the new composition of the CMH’s permanent members for the 2025-2029 term. The Council now includes eight entities linked to housing: FAMALIS, FENACHE, AIL, ALP, APPII, WIRE, AICCOPN and APEMIP. WIRE and AICCOPN are the new members of the body. The Municipal Housing Council is an advisory body of the local authority dedicated to housing-related issues. It includes the Mayor, or the councillor responsible for the area, representatives of associations and other social partners, as well as representatives of political groups with seats on the Municipal Assembly. Affordable housing among priorities APPII intends to continue bringing to the Council the accumulated knowledge of professionals involved in real estate development and investment. The aim is to contribute to an analysis of the main challenges affecting housing in Lisbon. Among the association’s priorities is promoting greater housing supply and affordable solutions for city residents. Participation in the CMH also allows APPII to follow the development of municipal policies and share its members’ experience of urban development and the housing market. APPII strengthens participation in the debate With the Council’s new composition, APPII maintains the representation of the real estate development and investment sector in this municipal forum for dialogue. The association intends to continue working with the other entities represented on the CMH, contributing sector knowledge and experience to the discussion on housing in Lisbon. The aim is to bring together different perspectives and help find responses to challenges related to housing supply, urban development and access to more affordable housing.
Photo: Adobe Stock Author: Redaction Residential construction continues to grow The number of homes licensed in Portugal increased by 4.5% between January and July 2026, reaching 25,854 homes, according to AICCOPN. This increase came despite a 7.7% reduction in licensed residential projects, which totalled 11,441 during the period. The Housing Statistical Summary therefore shows a different trend between the number of authorised homes and the total number of licensed projects. Mortgage lending follows the trend Demand for financing to buy a home also increased in the first seven months of the year. New mortgage lending, excluding renegotiations, reached €14.509 billion, 11.3% more than in the same period of 2025. Bank valuations of homes also increased. The median value rose by 15.2% year-on-year, with flats recording an increase of 16.5% and houses 13.6%. Lisbon increases number of new homes In the Lisbon Metropolitan Area, 5,727 homes in new-build developments were licensed in the 12 months to July. This represents a 6% increase compared with the 5,394 homes licensed in the same period. The region therefore accounts for a significant share of the newly licensed housing supply, amid positive growth in the number of homes authorised nationwide. Two- and three-bedroom homes lead new projects In terms of the size of licensed homes, two-bedroom properties account for 35% of all homes licensed in the Lisbon Metropolitan Area. Three-bedroom homes represent 32%, while studio and one-bedroom properties account for 17%. Four-bedroom and larger homes make up the remaining 16% of licensed homes. The data point to a predominance of two- and three-bedroom homes among new residential projects in the region.
Photo: Adobe Stock Author: Redaction The new Investment Contracts for Residential Letting (CIA) and the Simplified Affordable Letting Scheme (RSAA) came into force on 1 September 2026, but are still awaiting regulations setting out the procedures and requirements needed for their implementation. The two housing programmes were created by the Government to encourage the supply of properties for rent through tax benefits and simplified rules. In the case of the CIA, contracts can run for up to 25 years and involve investors and the Institute for Housing and Urban Rehabilitation (IHRU). The RSAA, meanwhile, establishes conditions for affordable rental agreements, including minimum terms of three years for permanent residence and three months for temporary residence. Housing programmes await regulations The two housing programmes have been in force since September, but some of the rules required for their operation still depend on further regulation. Decree-Law No. 97/2026 established that the respective regulations should be approved within 30 days of its publication, a period that ended on 19 June. The regulations are expected to define, among other aspects, the procedures and requirements for submitting and approving CIA contracts, as well as other conditions set out in the new legal framework. What changes with CIA contracts The Investment Contracts for Residential Letting allow agreements to be established with the State, through the IHRU, for periods of up to 25 years. The scheme provides tax benefits for investments intended for residential letting. The projects covered must allocate at least 70% of their construction area to residential letting. Rents are subject to the limits established under the scheme, with the concept of moderate rent serving as a reference. The incentives include exemptions from Property Transfer Tax (IMT) and Stamp Duty , as well as benefits in terms of Municipal Property Tax (IMI), in accordance with the legislation. RSAA simplifies affordable letting The Simplified Affordable Letting Scheme aims to make it easier to provide properties for rent at affordable prices. To benefit from the scheme, contracts must comply with maximum rent limits based on 80% of the median rent per square metre published by the National Statistics Institute (INE). One of the changes concerns minimum contract terms. For permanent residence, the minimum term is three years, while contracts for temporary residence have a minimum term of three months. The scheme also provides tax benefits on rental income that meets the established conditions. When will the new rules be known? The practical implementation of the housing programmes depends on the publication of the regulations provided for in the decree-law. So far, the available information indicates that these regulations are still pending, despite the schemes already being in force since 1 September 2026. Until the regulations are published, investors and property owners interested in participating will have to wait for the additional rules needed to implement the procedures provided for under the CIA and RSAA.
Photo: Adobe Stock Author: Redaction €40 million for housing Funchal City Council has approved the Local Housing Strategy, which provides for an investment of around €40 million by 2029. The aim is to increase the housing supply in the municipality through the construction of new homes and the renovation of existing buildings. The plan sets a target of reaching close to 300 housing units by the end of the period, through several projects across the municipality. Two projects are already underway Among the developments already in progress are Bairro da Ponte and Quinta das Freiras, both located in the parish of Santo António. The Bairro da Ponte project includes 23 homes, while the Quinta das Freiras development provides for the construction of 71 homes. Together, the two projects represent 94 new homes. These works are part of a broader set of interventions aimed at increasing the housing supply and improving the condition of the municipal housing stock. Strategy combines construction and renovation The Local Housing Strategy provides not only for the construction of new homes, but also for the renovation of existing buildings. In this way, the municipality intends to use different solutions to increase housing availability. The planned investment may also be supplemented by EU funding, allowing applications to be submitted to support housing projects. Securing external funding is therefore one of the tools planned to implement the interventions scheduled until 2029. See SUPERCASAs analysis of house price trends in Funchal here . Housing supply could increase by 2029 With the projects already underway and the remaining planned interventions, the strategy points to a significant increase in the municipal housing supply in Funchal. The completion of around 300 homes will depend on the development of the different projects and their respective funding processes. By 2029, the planned investment is expected to cover both new construction and renovation work on existing housing.
Photo: Adobe Stock Author: Redaction Government seeks to accelerate housing supply Real estate investment in Portugal was in the spotlight at the 10th edition of the Portugal Real Estate Summit, which brought together more than 400 national and international professionals. The Government presented the measures currently underway to increase housing supply and create more predictable conditions for investors. Among the priorities is the implementation of the Construir Portugal programme and the expansion of public housing. The announced target is to deliver around 40,000 homes by the end of 2026 and a further 30,000 in 2027. The strategy also includes measures to support households and tax incentives aimed at property owners and investors. Changes to urban planning and rental legislation also seek to facilitate new projects. Residential developments may create room for new projects Housing needs are not limited to buying and traditional renting. Student and senior living developments face significant supply shortages, creating opportunities for real estate investment in Portugal. Estimates presented at the event point to a need for tens of thousands of additional beds in these segments over the coming years. Affordable rental housing and Build to Rent projects are also emerging as areas with room for growth. The development of these models could help diversify the available supply. For investors, the consolidation of the first projects will be important to assess results and reduce uncertainty around new formats. Limited supply continues to put pressure on the market A lack of suitable stock remains one of the main features of the Portuguese property market. This situation affects not only housing, but also different segments of commercial real estate. Offices, logistics, hospitality and retail have limited supply in several locations, contributing to rising rents. Lisbon stands out particularly in the office segment, where forecasts point to continued pressure on prices. Investors are also showing interest in areas such as data centres, at a time when financing and capital allocation strategies are becoming increasingly important. Predictability will be key for investment For real estate investment in Portugal to continue attracting capital, regulatory predictability and the implementation of the announced measures will be important factors. The sector recognises the existing potential but is closely monitoring how the incentives are put into practice. The evolution of housing supply will also be crucial in assessing the impact of public policies and the ability of developers to respond to demand. With different segments looking for new projects, the Portuguese market continues to offer opportunities, but investment decisions will depend on regulatory, financial and economic conditions over the coming years.
Photo: Adobe Stock Author: Redaction More space for housing and services The Municipal Council of Santa Maria da Feira unanimously approved the final proposal for the second revision of the Municipal Master Plan (PDM) of Santa Maria da Feira. The document will now be submitted to the Municipal Assembly for consideration. The revision aims to adapt spatial planning to the municipality’s demographic and economic development, increasing building capacity for housing, retail and services. The changes also include the identification of urban areas that can be consolidated, making better use of areas already integrated into the urban fabric and limiting dispersed expansion. New areas for business activity The PDM of Santa Maria da Feira also provides for increased capacity for the establishment and expansion of companies. The proposal includes 15 new Economic Activity Areas, increasing the available area for this purpose by around 11%. The aim is to create conditions that can keep pace with the municipality’s business activity by making suitable land available for new facilities and the expansion of existing activities. The revision also provides for the provision of infrastructure in 233 areas, including works involving roads and their respective networks. Areas for social, educational, sports and recreational facilities are also planned. Urban planning rules are updated In terms of housing, the PDM of Santa Maria da Feira introduces changes to building ratios and development criteria, allowing greater construction capacity in certain urban areas. The document also establishes rules for consolidating so-called urban voids and safeguards municipal land included in the Municipal Housing Strategy. These changes aim to promote more organised urban development, aligning housing construction with the need for facilities and infrastructure. Revision moves to the Municipal Assembly The final proposal follows a period of public consultation held between 13 February and 27 March. During this process, 1,184 submissions were received, 62% of which received a fully or partially favourable decision. The process also included information sessions and technical support at municipal services and in the parishes. Following approval by the municipal executive, the revision of the PDM of Santa Maria da Feira will now be submitted to the Municipal Assembly. The new spatial planning instrument will only enter into force once the remaining stages of the process have been completed.
Photo: Adobe Stock Author: Redaction More families can access support Guimarães City Council has approved changes to the rental support regulations, allowing a larger number of households to benefit from this incentive. Under the new rules, families with gross monthly household incomes of up to around €2,100 will now be eligible. The previous limit was set at €650, which restricted access to households with significantly lower incomes. The change aims to adapt rental support to families’ current economic circumstances and address the growing difficulties associated with paying rent. Subsidy could reach 400 more families The expansion of rental support is expected to benefit around 400 families currently on the waiting list. The measure aims to strengthen the municipal response for households struggling to cover housing-related costs. The review of the rental support rules also comes amid pressure on the housing market, where rental costs can account for a significant share of household budgets. With the new income threshold, more households will meet the requirements to apply for rental support, increasing the pool of potential beneficiaries. Municipality strengthens public housing supply In addition to expanding rental support, Guimarães City Council is developing measures to increase the supply of public housing in the municipality. According to information released by the municipality, 75 new housing units are planned for next year. The measure complements rental support, aiming to increase housing availability for families. The strengthening of public housing supply and the expansion of rental support are therefore part of a broader municipal strategy to respond to the population’s housing needs.
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