The European Investment Bank (EIB) has approved a €1.34 billion framework loan to support the construction and renovation of approximately 12,000 affordable housing units across Portugal. The first €450 million tranche of this financing was signed by the Republic of Portugal and the EIB, marking a significant step in addressing the country’s housing challenges while promoting social inclusion, territorial cohesion, and environmental sustainability. The funding will help establish a long-term housing stock with rents below market prices, aligned with energy efficiency and climate resilience goals to support Portugal’s and the EU’s environmental objectives.
The signing ceremony took place at the official residence of the Prime Minister in Lisbon, with Miguel Pinto Luz, Minister for Infrastructure and Housing, emphasizing the government’s commitment to delivering affordable homes rapidly to families in need. Minister of State and Finance Joaquim Miranda Sarmento highlighted the EIB’s longstanding role in financing key projects in Portugal over the last 40 years. Ioannis Tsakiris, Vice President of the EIB, underscored the importance of affordable housing for social cohesion, economic competitiveness, climate resilience, and sustainable urban development, and affirmed the strategic partnership with Portugal to expand housing access and promote inclusive growth.
The framework loan also benefits from funding under Portugal’s Recovery and Resilience Plan, with combined EU/RRF and EIB contributions covering approximately 90% of the total investment cost, and EIB financing accounting for 75%. This project aligns with the EIB Group’s strategic priorities, fostering socio-economic and territorial cohesion while supporting climate action as part of its 2024-2027 Strategic Roadmap.
Portugal’s national Affordable Housing Programme represents a €1.8 billion public investment through 2030, co-financed by the EIB and implemented by IHRU (Instituto da Habitação e da Reabilitação Urbana). The programme aims to support families whose incomes prevent access to market-rate rentals, establishing a cornerstone of national housing policy.
The EIB Group continues to strengthen Europe’s housing sector by working with the European Commission, national governments, cities, and promotional banks to provide financing and expertise for innovative, energy-efficient, and affordable housing. Its approach focuses on sustainable construction techniques, renovation of aging housing stock, and building new affordable homes. To accelerate progress, the EIB has launched a Housing Action Plan that provides end-to-end support, increased financing, and faster market solutions. The “More Homes. Better Homes” online portal connects local authorities, developers, and communities with advice, funding, and financing to facilitate housing projects and promote access to affordable housing across Europe.
