OE2027: Government announces 2,003 million for public and affordable housing

A budget proposal for 2027 provides for an investment of eur 2.003 million in increasing affordable housing supply and strengthening the public housing park, according to the document delivered to parliament today.

“The government continues with the strengthening of the public park, the dynamization of accessible leases and the modernisation of urban licensing processes, betting on a scale response that combines public investment, mobilization of return assets and administrative simplification”, reads the proposal.

The largest share of EUR 1,071 million is earmarked for programmes to increase the supply of public housing and rehabilitation of the public heritage of the Institute for Housing and Urban Rehabilitation (IHRU).

Support for rental through programs such as Porta 65+, Porta 65 Young and PAER – Pergram of Income Support, Investment Contracts for Rent (CIA) and the tax benefits for affordable rental has a budget of EUR 917 million next year.

The budget proposal also provides EUR 15 million to simplify and digitise the urban licensing process.

In the OE2027, the government attributes the housing crisis to a “cumulative shortage of supply which has resulted in a much higher price change than family incomes, aggravating difficulties in access to housing, particularly for young people, middle class and vulnerable families”.

According to the document, budgetary priorities are based on the provision of housing by public, private and cooperative entities for social leasing, accessible or at moderate costs, as well as permanent housing of controlled or moderate costs.

The government also wants to “mobilize private investment through public-private partnerships with state real estate, and implement the financing program of the 45,000 households excluded from the Recovery and Resilience Plan”.

Within the framework of the PTRR, the executive wants to implement the National Emergency Housing System, “sit in a national emergency housing and complementary social response network, in the mobilization of public buildings for temporary reception and modular solutions and strategic reserves”.

The proposal also points to the correction of the structural supply deficit, the reduction of the burden of housing costs in the household budget and access to housing with high quality and sustainability standards.