Housing in 2026: how the State Budget and public programs respond to the crisis.
- Redação Mudei e Agora
- 1 day ago
- 2 min read
The State Budget for 2026 explicitly acknowledges that Portugal faces a “serious housing crisis,” an expression that appears in the document itself submitted to Parliament. This political recognition translates into a reinforcement of public housing programs, rent support, and financing instruments to accelerate the supply of affordable housing, especially for families with middle and low incomes.
One of the central pillars is investment in public and subsidized housing, managed by the Institute of Housing and Urban Rehabilitation (IHRU). Approximately €1.2 billion is earmarked for housing promotion and rehabilitation programs, aiming to house around 22,000 people by 2026. This funding covers both new construction and the rehabilitation of existing buildings, seeking to address situations of severe housing shortage.
Another key area is Rental Guarantees and Rent Support, with approximately €336 million allocated in 2026. This support is intended for families struggling to cope with rising rents, with mechanisms that may include direct contributions or guarantees that reduce risk for landlords and encourage formal and stable contracts. The logic is twofold: to protect tenants and, at the same time, provide greater security for those placing properties on the rental market.
The Recovery and Resilience Plan (PRR) continues to play a crucial role, with approximately €9,367.1 million allocated to housing, energy, environment, and business innovation projects. Within this framework, a significant portion is dedicated to affordable housing, reinforcing the pipeline of municipal projects and partnerships with private entities. The articulation between European funds and national policies becomes crucial to accelerate the implementation of projects.
The question is whether this set of measures will be sufficient to reverse the crisis. On the one hand, the increased funding and the multiplication of instruments are positive signs for the sector, including construction companies, developers, and municipalities. On the other hand, challenges persist, such as slow licensing processes, difficulties in setting up rehabilitation operations in historical centers, and the need to ensure that projects actually reach those who need them most.
From the perspective of real estate professionals, understanding this ecosystem of programs is an opportunity. Knowing the funding lines, eligibility criteria, and objectives of each instrument allows for the identification of partnerships with municipalities, collaboration on applications, and the design of projects aligned with public priorities. For impact investors and socially focused funds, 2026 emerges as a key year for positioning in affordable housing and urban rehabilitation in cooperation with the public sector.
Source: 24noticias / SAPO – “Housing in 2026: the complete overview of existing programs and new measures”.
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