Rehabilitation and Construction of Houses Across the Country Portugal invests in house rehabilitation and construction to meet rising housing demand nationwide. 07 Jul 2025 min de leitura The need to ensure decent and affordable housing has led Portugal to intensify efforts in both urban and rural contexts. The country is undergoing a phase of transformation marked by multiple public and private initiatives aimed at addressing supply shortages, boosting the real estate market, and revitalising urban centres and inland areas. This dynamic is evident in flagship projects, the use of European funds, and the increase in support for the population. The Central Role of Urban Rehabilitation Rehabilitation of houses has become one of the main strategies to increase housing supply in Portugal. With more than half of the country's homes being over 30 years old, renewing the housing stock has become essential. In recent years, the number of licensed rehabilitation projects has grown, reflecting many families' preference for renovating existing properties rather than buying new homes. This trend is driven by market appreciation, energy efficiency demands, and the need to adapt spaces to contemporary lifestyles. City centres such as Porto and Lisbon have seen historic buildings transformed into modern apartments, preserving architectural identity and revitalising entire neighbourhoods. Rehabilitation not only improves the comfort and efficiency of homes but also contributes to urban regeneration and the dynamisation of local commerce. At the same time, it faces challenges such as skilled labour shortages and rising material costs, which put pressure on the entire construction sector. Construction of New Houses: Responding to Growing Demand Alongside rehabilitation, the construction of new houses gained new momentum in 2025. Thousands of new family homes were completed in the first quarter of the year, with the North and Centre regions accounting for more than half of the new homes delivered. The licensing of new housing increased significantly, reflecting the sector’s response to rising demand and the need to renew the national housing stock. This focus on new house construction is crucial to balancing the market, especially in urban areas under pressure from population growth and demand for affordable housing. Large-scale projects promoted by private groups and municipalities help diversify supply, ranging from compact city-centre apartments to expanding residential developments on urban outskirts. Public Support and European Funds: Drivers of Transformation The Portuguese State, in coordination with European funds such as the Recovery and Resilience Plan (PRR), has been increasing investment in housing rehabilitation and construction. Programmes like 1.º Direito and Vale Eficiência support families and municipalities in restoring dilapidated properties, promoting energy efficiency, and creating affordable housing solutions. These supports are particularly relevant for revitalising the country’s inland areas, where rehabilitating rural houses aids repopulation and preserves local heritage. Incentives cover everything from restoring abandoned buildings to constructing new homes, promoting territorial cohesion and sustainable development. Applying for these programmes requires meeting strict criteria, such as completing works by 2026 and guaranteeing affordable rents. Funding covers both rehabilitation and new construction, allowing municipalities and promoters to respond flexibly to population needs. Private Initiatives and Innovation in the Sector The private sector plays a key role in energising the housing market with innovative projects that combine rehabilitation and new house construction. Companies and real estate groups invest in large-scale residential developments, often integrated into urban plans that include green spaces, supporting infrastructure, and sustainable mobility solutions. Innovation also extends to industrialised construction and converting commercial spaces into housing,strategies that speed up responses to demand and optimise resources. These solutions are complemented by tax incentives and administrative simplification measures aimed at attracting investment and facilitating access to housing. Challenges and Future Perspectives Despite progress, Portugal still faces significant housing challenges. Energy poverty, labour shortages, and rising construction costs are obstacles that require coordinated responses from the State, private sector, and civil society. The goal to renovate nearly half of residential buildings by 2030 demands accelerating rehabilitation efforts and innovating construction solutions. The future of housing in Portugal depends on an integrated approach that values both rehabilitating existing buildings and constructing new houses, ensuring quality, sustainability, and accessibility for all. The commitment to urban regeneration, repopulating inland areas, and promoting decent housing is now a national priority, reflected in the many efforts across the territory. Rehabilitation and construction of houses are essential pillars of Portugal’s response to the housing crisis, resulting in concrete projects, financial support, and a renewed vision for the future of cities and communities. Source: SUPERCASA Artikel empfehlen FacebookXPinterestWhatsAppCopy link Link copiado