Portugal capital falls behind on housing renovations

Lisbon has renovated only about half of the municipal homes identified for improvement, leaving thousands of properties still awaiting work as the city continues to grapple with its housing shortage.

By Kam Heskin, in News, Housing · 16 Oct 2026, 07:03 · 0 Comments

Credits: Unsplash; Author: Marina Poliukhovich;

According to figures from Lisbon City Council, 7,201 homes have been renovated out of the 14,383 originally identified as needing attention.

The completed work represents approximately €299 million in eligible investment, part of a wider €800 million housing programme running until 2028.

But securing funding has proved another challenge.

Of the homes identified, applications were submitted for 10,789 properties, around 75% of the total. That leaves approximately 3,600 homes without an application or approved funding under Portugal’s Recovery and Resilience Plan as of the end of June.

Municipal resources

The council says more than 3,500 additional homes are currently being planned or renovated, using a combination of European funding, the national 1.º Direito housing programme and municipal resources.

There has also been a slowdown in the number of homes handed over to residents.

So far in 2026, Lisbon City Council reports that 253 homes have been allocated through its various housing programmes. That compares with an annual average of 687 during Mayor Carlos Moedas’ two terms in office.

A programme aimed specifically at younger residents has also fallen short of its initial target.

Under the De Volta ao Bairro initiative, designed for people aged 35 and under, the council now expects to make 63 homes available in 2026, rather than the 120 originally planned.

While renovation work continues across the capital, the figures highlight the gap between the city’s housing ambitions and the number of homes actually being made available to residents.