The government of Portugal is addressing a nationwide housing shortage by allocating $2.2 billion to construct approximately 33,000 homes by 2030.
According a Reuters report, Portugal’s Infrastructure Minister Miguel Pinto Luz said 10,000 of the new homes will have 100% non-refundable financing while the remaining residences will receive public grants equivalent to 60% of the cost of each home. The new endeavor adds to a previously announced plan to build 26,000 homes by 2026.
“There will be around 59,000 new homes by 2030,” said Pinto Luz. “It is the largest public investment in housing in recent decades to guarantee a decent home to those who need it most.”
Portugal’s housing shortage is based on a low inventory of affordable housing coupled with the influx of wealthy foreigners lured by residency rights that feature property investment and tax breaks. The problems are most evident in the capital of Lisbon, where rents spiked by 94% since 2015 and house prices soared by 186%.
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