Large sum of money allocated for housing solutions
Lisbon Approves Major Affordable Housing and Urban Development Projects
Lisbon's Municipal Council has recently green-lit significant housing and urban development projects, with a focus on affordable housing. These projects aim to expand the city's affordable housing stock, reduce short-term rental saturation, and regenerate urban districts.
Marvila Parish Project
In the Marvila Parish, two new housing blocks with 50 affordable units (one- to three-bedroom apartments) have been completed and delivered to families. The project, which began construction in 2023, was co-financed by the Recovery and Resilience Plan (RRP) and cost approximately €9.3 million.
An ongoing development in the same area, the Vale Formoso de Cima Project, features 105 units ranging from studios to four-bedroom apartments. The exact completion date for this project is yet to be announced, but construction is currently underway as part of the same municipal initiative.
Lumiar District Project
The Lumiar District will see the construction of 38 one- and two-bedroom rental apartments, funded by private investment of about €4 million. This project exemplifies the build-to-rent model emerging in Lisbon's housing market.
Vila Dias Project and Bairro Padre Cruz
The Vila Dias proposal includes a public tender for renovating original buildings and constructing a new residential block, aiming to build 98 new housing units between 2025 and 2027. The urban development plan for this project has a base cost of €2.99 million.
The council also approved an urban development plan for the Horizonte neighbourhood in Penha da Fraça. The Bairro Padre Cruz project, which has a base cost of €16.11 million, will complete the rehousing process, according to the council. The construction timeline for the housing project is 720 days.
However, the Bairro Padre Cruz project was approved with abstentions from Livre and Cidadãos Por Lisboa, who are part of the PS/Livre coalition. The remaining councillors, including PSD/CDS-PP, PS, PCP, and BE, voted in favour of the project.
Funding for the project will come from the national housing program "1.o Direito." A total of 120 families still await rehousing as part of this effort, which started in 2011.
These projects align with Lisbon City's broader strategy to address housing needs, combat urban decay, and promote sustainable development. The municipal budget and co-financing play a key role in larger blocks, while private investment supports emerging rental housing models.
[1] Lisbon City Hall Official Website [2] Recovery and Resilience Plan [3] Build-to-Rent Market in Lisbon [4] Lisbon's Affordable Housing Strategy
- The municipal initiative in the Marvila Parish, funded in part by the Recovery and Resilience Plan, comprises two new housing blocks with 50 affordable units, demonstrating Lisbon's investing in affordable housing and real-estate development.
- The construction of 38 one- and two-bedroom rental apartments in the Lumiar District, an instance of the build-to-rent model emerging in Lisbon's housing market, shows the city's commitment to promoting affordable housing and finance.
