EIB supports Portugal's housing market with €1.3b investment

The European Investment Bank (EIB) and Portugal have reached an agreement for a €1.34 bn loan to fund affordable housing initiatives in Portugal. 

EIB-Portugal signing

The first installment of €450 mln will help build and renovate about 12,000 affordable rental homes across the country, providing long-term housing options at below-market rates.
The project is designed to tackle Portugal's housing shortages, boost social inclusion, strengthen regional unity, and promote environmental sustainability. All new and refurbished homes will meet energy efficiency and climate resilience standards, supporting both Portuguese and EU environmental objectives.
The affordable rent scheme ensures that housing costs are kept below market rates, creating a stable and long-term supply of housing. With financing from the EIB and the State Budget, municipalities have until 2030 to implement their housing projects, which is a more extended period than the RRF's June 2026 deadline. The favourable terms, including lower interest rates and longer grace periods, make this investment more sustainable.
This initiative aligns with the EIB's strategic goals of promoting socio-economic and territorial cohesion and supporting climate action. It will also receive significant funding from Portugal’s Recovery and Resilience Plan, with combined EU/RRF and EIB contributions covering roughly 90% of the total investment, and the EIB providing 75% of that financing.
Miguel Pinto Luz, minister for Infrastructure and Housing, said: “Providing a solution to housing challenges is an absolute priority for this Government, which counts on the EIB as a key partner in this area that is so important for the country. With this €1.34 bn in financing, we have another tool at our disposal for public housing in Portugal. This means approximately 12,000 more affordable homes, at below market prices, which we want to make available to families in our country as quickly as possible.” 
Ioannis Tsakiris, VP of the EIB added: “With this new financing agreement, we are strengthening our strategic partnership with the Government of Portugal to deliver thousands of homes, to expand access to affordable housing, and Portugal´s efforts to build a more inclusive economy, promote balanced territorial development and contribute to climate action through energy-efficient living.”
Portugal has launched a national program to promote affordable public housing, involving a €1.8 bn public investment through 2030. This initiative is central to the government's strategy to help families who cannot afford market-rate rents. The program is co-financed by the EIB and managed by IHRU, a public entity responsible for Portugal's housing policy.