Between 2023 and 2026, the lisbon City Council invested 1.1 million euros in the preparatory phase of the 1st Habitação Lisboa (Lisbon Housing). It has already selected 11 locations, but construction has not yet begun.
The return of cooperatives to housing in Lisbon is one of the pillars of the municipal strategy to increase the supply of affordable homes in the city. In February 2024, the Lisbon City Council launched the Programa Cooperativas 1ª Habitação Lisboa (Cooperative Program 1st Lisbon Housing), a model that combines the granting of municipal land on a surface right with the construction of non-profit housing, under the management and promotion of housing cooperatives. The idea is simple: to recover a form of construction that has been practically absent from the city for decades and accelerate the launch of works, with architecture projects already approved and ready to move forward.
In 2021,the Lisbon City Council initiated prospective work with a view to defining a contractual and economic model that would encourage the construction of housing by cooperatives,with municipal support. With the elaboration of the Carta Municipal de Habitação de lisboa 2023-2032 (Lisbon Municipal Housing Charter 2023-2032), several municipal lands, mostly of small scale, with high potential for the development of this housing model were identified. The objective defined in the charter is enterprising: the construction of 500 homes within the scope of the Municipal Cooperative Program, distributed across 11 interventions already identified in parishes such as Ajuda, Arroios, Belém, Benfica, Lumiar, marvila, São Vicente and Santa Clara.
“The cooperative model flourished after April 25th, responding to a serious housing crisis with strong state mobilization, available municipal land and specific credit lines – resulting in about 160,000 homes until the 80s – but from the 90s it began to decline, due to the facilitation of credit conditions for housing and the cessation of funding and public support, a situation that worsened substantially from the 2008 crisis, with the restriction of credit to housing and the decrease in the construction buisness fabric. However, tax incentives for the promotion by housing cooperatives have been maintained and have been used, although on a smaller scale than recorded in previous decades”, explains an official source from the Ministry of Infrastructure and Housing.
Lisboa was one of the Câmaras that recup
Housing Initiatives in Lisbon: A Focus on Cooperatives
Table of Contents
The Lisbon city Council is implementing a program to promote housing cooperatives, aiming to increase affordable housing options and maintain municipal assets for future generations. This initiative seeks to bypass reliance on the open market and accelerate access to housing amidst a continuing housing crisis.
Carlos Moedas and Lisbon City Council’s Housing Policy
Lisbon City Council,under the leadership of Carlos Moedas, has prioritized housing. Moedas stated the council ”did not hesitate in electing… housing as one of our greatest priorities.” The cooperative program is presented as a revival of this model in the city after a 25-year hiatus.
Municipal Asset Management and Long-Term Leases
The program involves granting long-term leases (up to 50 years) on municipal land to cooperatives. This allows the cooperatives to develop affordable housing projects. The mechanism ensures the land remains publicly owned, available for future generations. The Câmara Municipal de Lisboa retains the ability to extend lease terms based on public interest and current housing policies.
Current Status and goals
As of January 27, 2026, the program aims to deliver 500 housing units. However, the text indicates that as of the reporting date (implied to be prior to january 27, 2026), no housing units have yet been completed. Lisbon continues to grapple with a housing crisis showing no signs of easing.
verification Status: As of january 27, 2026, a search for updates on the Lisbon City Council’s housing cooperative program reveals approval of the first tender for cooperatives to build houses in December 2023,confirming the program’s progression. Further updates regarding the completion of the initial 500 units are still pending as of this date.
