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 €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 Interest rates rise on home loans According to data released by the National Statistics Institute (INE), the implicit interest rate across all home loan contracts rose to 3.162% in August . This represents an increase of 2.7 basis points compared with the previous month and the highest level since October 2025. For financing intended for home purchases, the implicit interest rate also increased, reaching 3.148%. The rise in interest rates comes as the average outstanding loan balance continues to grow. Outstanding capital reaches new record In August, the average outstanding capital on home loan contracts increased by €725 compared with July, reaching €80,188. According to INE, this is the highest value since the statistical series began. The combination of higher outstanding capital and rising interest rates was directly reflected in mortgage payments. In August, the average monthly payment reached €418, €4 more than in the previous month and €24 more than in the same period of 2025. Of the total payment, around half corresponds to interest, while the remaining amount goes towards repaying the principal. New contracts have higher payments For contracts signed over the previous three months, the interest rate remained at 2.910%. For loans intended for home purchases, there was a slight decrease to 2.897%. Despite stable interest rates on new contracts, the average outstanding capital increased. For loans signed over the previous three months, the average amount reached €185,812, €3,336 more than in July. This increase in the amount borrowed also affected mortgage payments on new contracts. In August, the average payment reached €744, €13 more than in the previous month and 14.3% above the figure recorded one year earlier.
Photo: Adobe Stock Author: Redaction Four homes with reduced rents BragaHabit has opened a new application process for four homes included in the Municipal Affordable Rental Programme. Applications are open until 30 September and must be submitted online through the municipal companys Digital Desk. The offer includes two two-bedroom apartments on Rua dos Barbosas, with a maximum rent of €600 each, a three-bedroom apartment on Praça do Comércio, with a rent of up to €700, and a four-bedroom apartment on Rua Nova da Estação, with a maximum rent of €800. The set rents can be reduced by up to 30%, depending on the households gross monthly income. With the maximum discount, the two-bedroom apartments are available for €420, the three-bedroom apartment for €490 and the four-bedroom apartment for €560. How affordable rental works The programme aims to provide housing at more affordable prices for families facing current market rents but who do not necessarily meet the requirements for supported rental housing. Under this model, property owners hand over their homes to BragaHabit, which then sublets them to families. In addition to setting limits on the households effort rate, the programme allows contracts with greater stability to be signed. To apply, households must meet the criteria relating to income, family composition and suitability of the property type. They must also not own, hold usufruct over or rent another suitable home in the municipality. A draw determines the selected families The four homes will be allocated through a public draw among applicants who meet the requirements. Those who are not selected will remain on a ranked waiting list, which is valid for six months. The homes can be visited before applying, by appointment. For further information or to arrange a visit, applicants can contact BragaHabit by email at arrendamentoacessivel@bragahabit.pt or by phone on 253 268 666, option 1.
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