Portugal to upgrade and expand social and sustainable housing with €1.5 billion in EIB financing

• €1.5 billion loan will support more than 50 000 new and rehabilitated housing units across Portugal.
• €500 million first tranche signed to fund investments under Portugal’s Local Housing Strategies.
• Operation will improve housing conditions for vulnerable families while promoting urban regeneration and social cohesion.

Portugal will upgrade or build a total of 50,000 social housing units across the country with the support of a €1.5 billion loan from the European Investment Bank (EIB). Both sides signed an agreement for an initial €500 million tranche.

The EIB financing supports one of Portugal’s largest public investment programmes to improve the quality, safety, and accessibility of social housing. Under the Local Housing Strategies, it aims to improve living conditions for vulnerable households and make communities more inclusive, resilient, and sustainable.

“This new financing from the European Investment Bank to the Portuguese Republic is yet another decisive step toward implementing the ‘Construir Portugal’ strategy and providing a structural response to the housing crisis. Our goal is clear: to increase the housing supply, strengthen public investment in housing, and ensure that municipalities have the means to turn projects into actual homes for families. Following the historic effort undertaken through the RRP, we know that many municipalities identified needs and developed housing solutions that could not be fully funded by the RRP, as the limit of 26,000 planned responses had been reached. We do not want this work to go to waste, nor do we want these needs to go unmet. With this loan, we are creating the conditions to move forward with these applications, support the rehabilitation of the existing housing stock, and promote new public housing supply throughout the country. The partnership with the EIB allows us to provide better financing, execute projects with greater predictability, and accelerate the country’s housing response. Housing requires continuity, scale, and commitment. That is what this financing represents: greater capacity for municipalities, more public investment, and more homes for those in need,” the Minister of Infrastructure and Housing, said Portuguese Minister of Infrastructure and Housing Miguel Pinto Luz.

“Today marks another highly significant step towards one of this government’s key priorities: strengthening the construction and renovation of public housing in Portugal, with the aim of ensuring better living conditions for the most vulnerable families”, said Portuguese Minister of State and Finance Joaquim Miranda Sarmento “This initiative would not have been possible without the European Investment Bank’s strategic support for Portugal and the Portuguese economy.”

Ioannis Tsakiris, Vice President of the EIB added: “The EIB is committed to supporting investments that improve people’s daily lives. Through this loan, we are helping Portugal increasing public housing stock, expand access to decent homes and promote more inclusive and sustainable communities. This operation reflects our strong partnership with Portugal and our shared commitment to addressing one of Europe’s key social priorities.”

Investments will focus on improving the quality, safety, accessibility and energy performance of residential buildings, while contributing to urban regeneration and enhancing the resilience of local communities.

The loan forms part of the EIB’s support for social infrastructure and territorial cohesion in Portugal. The operation will help address one of the country’s most pressing social challenges while contributing to the objectives of the European Union’s social and cohesion policies.

The EIB has been a longstanding partner of Portugal in financing investments that improve citizens’ quality of life. This operation further strengthens the EIB’s support for the housing sector, complementing previous financing for affordable housing and reinforcing its commitment to sustainable urban development and social inclusion across the country.

About Portugal´s Local Housing Strategies

Portugal’s Local Housing Strategies are the cornerstone of a place-based approach to housing policy. Developed by municipalities, they identify local housing needs, define priorities and translate national objectives into concrete, tailored responses. By combining local knowledge with national funding and policy instruments, these strategies strengthen cooperation between central and local government and ensure that public investment is directed towards the households and territories where it is most needed.

About EIB Group’s commitment to strengthening Europe’s housing sector

The EIB Group is working closely with the Commission, national governments, cities, international financial institutions, national promotional banks and financial intermediaries to strengthen Europe’s housing sector by providing the finance and expertise needed to build more innovative, energy efficient and affordable homes. The EIB Group builds its affordable housing approach on three core priorities: support for innovative and sustainable housing construction techniques, renovation of Europe`s aging housing stock and building of new affordable housing.

To accelerate progress, the EIB Group has launched an Action Plan for Affordable and Sustainable Housing aimed at increasing financing across Europe to more than €4 billion in 2025 and targeting €6 billion in housing lending in 2026, end-to-end support, and faster market solutions. As part of this Action Plan, the EIB Board authorized a first-of-its-kind €400 million HousingTechEU initiative to support mid-cap and large companies in the EU housing market to accelerate industrial, technological and construction innovation. This new funding will help develop new construction materials, machinery and engineering to improve the quality and lower the costs of housing, while boosting European innovation and competitiveness.

To make it easier for local authorities, developers, and communities to access support, the Group has worked with partners to develop the “More homes. Better homes” online portal, connecting housing stakeholders with the advice, funding, and financing they need. This web portal was endorsed by the European Commission as a first step towards the Pan-European Investment Platform.

For a comprehensive view of the EIB Group initiatives to support affordable housing in Europe visit More homes. Better homes.