Portuguese Government Launches Comprehensive Housing Strategy

A new housing policy unites public, private, and cooperative sectors to expand rental supply and simplify licensing.

On July 3, 2025, the Portuguese government unveiled a sweeping national housing strategy aimed at tackling the country’s rapidly escalating housing crisis. Spearheaded by Prime Minister Luís Montenegro, the new policy introduces a multi-pronged approach that mobilizes public authorities, private developers, and housing cooperatives to increase Portugal’s rental housing stock and improve market accessibility.

Central to the strategy is the commitment to deliver approximately 59,000 homes through construction, rehabilitation, and targeted acquisitions by the year 2030. These homes will serve a wide range of income levels, with a focus on providing affordable rental options in high-demand areas. The program includes the release of publicly owned land for development, and financial incentives will be available to developers who prioritize affordability and long-term rental commitments.

In an effort to remove bureaucratic hurdles, the government is implementing streamlined licensing and permitting procedures, particularly for build-to-rent developments. Fast-track approvals and simplified planning frameworks will be introduced to eliminate the delays that have historically slowed housing delivery across the country. The plan also introduces regulatory reforms to increase transparency in lease contracts, improve legal protections for both landlords and tenants, and create a more stable investment environment in the residential rental market.

Rising property values—up 16.3% year-over-year as of early 2025—have made it increasingly difficult for young professionals, working-class families, and even middle-income earners to access adequate housing. By aligning public investment with private development, and increasing cooperation with local governments, the Portuguese state hopes to balance urban growth with affordability. The policy also reflects an effort to decentralize housing solutions, empowering municipalities to partner in land-use decisions while maintaining national oversight for consistency and equity.

https://www.idealista.pt/en/news/property-for-sale-in-portugal/2025/07/03/70370-portuguese-government-launches-new-housing-policy-to-tackle-rising-prices/