The projects, submitted under the Algarve 2030 regional programme, cover the construction of new homes as well as the renovation and conversion of existing buildings for social housing.

Currently, Lagos, Vila do Bispo, Portimão, Tavira, São Brás de Alportel, Castro Marim and Alcoutim are the municipalities with applications submitted under the funding programme.

Supply strategy

Algarve 2030 reports that the proposed investments reflect housing needs identified in each municipality’s Local Housing Strategy and are intended to strengthen the supply of publicly owned housing, as access to affordable accommodation remains one of the main challenges facing the region.

Municipalities can still submit projects, with the current application period running until 30 March 2027, and new proposals will be considered within the limits of available funding.

The first phase of the Algarve-2026-13 call for Social Housing in the Algarve closed on 15 August, with an indicative allocation of €28 million from the European Regional Development Fund (ERDF).

A second phase is now open and will remain available until March next year.

The funding can be used to construct, renovate, or convert buildings into social housing, provided the projects are included in the municipalities’ Local Housing Strategies.

Cost coverage

Depending on the project, the programme will cover between 30 percent and 70 percent of eligible costs, but applications must also meet requirements relating to environmental sustainability and energy efficiency.

Furthermore, funding is also planned for other types of housing.

Algarve 2030 expects to make another €32 million available through future funding opportunities covering affordable housing, student accommodation and housing provided for workers whose roles require them to live in the area.

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