Government Sets Maximum Rents for Affordable Housing Program

Wednesday, 14 October 2026AI summary
Government Sets Maximum Rents for Affordable Housing Program
Photo: Diário de Notícias

A new government ordinance established maximum rent ceilings under the Simplified Affordable Rental Regime (Regime Simplificado do Arrendamento Acessível). The program grants landlords complete tax exemptions on rental income in exchange for charging below-market rates calculated by the National Statistics Institute (Instituto Nacional de Estatística or INE). The updated framework also removes income eligibility checks for tenants and defines minimum lease contract durations.

Context & Explainers

The INE housing price index (Índice de Preços da Habitação) tracks changes in residential property transaction prices across Portugal, published quarterly by the National Statistics Institute (INE). It covers both new and existing dwellings and breaks data down by region, property type, and buyer nationality.

The index is a key reference for policymakers debating housing affordability measures, for lenders assessing mortgage risk, and for buyers and investors tracking market trends. It has shown sustained price growth since 2015, with particularly sharp increases in Lisbon, Porto, and the Algarve driven by international demand, tourism, and housing shortages.

Related INE publications include monthly housing transaction data, rental indices, and construction statistics. Together, they provide the most comprehensive picture of Portugal's property market.