Rehabilitating run-down neighbourhoods and ensuring affordable housing in Portugal

Many Portuguese towns are characterised by run-down central areas, after decades of housing policies that have resulted in urban sprawl, leaving city centres neglected and affecting the fabric of local economic activities and living standards.

Run-down neighborhood in PortugalAccording to a recent census, there are about two million dwellings in need of renovation, representing about one-third of the national housing stock. 

In 2014, the Portuguese government approved the “Regime Excepcional de Reabilitação Urbana” for the rehabilitation of housing units built more than 30 years ago, located in urban rehabilitation areas and predominantly intended for residential use. 

The main objective of the CEB’s € 15 million loan is to co-finance the rehabilitation of urban areas to improve living conditions and provide affordable housing via the government’s Institute for Housing and Urban Rehabilitation (Instituto da Habitação e da Reabilitação Urbana). 

The programme will benefit an estimated 1 500 households that will live in the rehabilitated buildings in better conditions as well as the inhabitants of run-down neighbourhoods who will see an improvement in their living environment and local economic conditions. 

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