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Portuguese Government Invests €800 Million in Urban Rehabilitation

11 March 2021 – Ana Custódio

The Portuguese government announced that it had signed a total of 285 contracts under the auspices of the Financial Instrument for Urban Rehabilitation and Revitalization – IFRRU 2020.

The planned investments exceed 800 million euros and go towards the complete rehabilitation of buildings and improvements to their energy performance. The IFRRU 2020 finances urban rehabilitation and was created under Portugal 2020, which has a funding capacity of 1.4 billion euros.

According to a report on Diário Imobiliário’s website, the federal government stated that, despite the knock-on economic effects of the Covid-19 pandemic, the IFRRU 2020 continued its mission to revitalise urban centres, signing 125 contracts to redevelop housing and 144 for economic activities. The other 14 will go towards buildings intended for collective use or social and cultural support, including student residences. Of the total, 48 have already been concluded.

Most of the projects, a total of 216, were submitted by companies, but there are also projects from individuals, social solidarity institutions and City Halls. The contracts are for properties located in urban rehabilitation areas as defined by the respective municipalities, ensuring their alignment with the local urban policy. Eighty-one municipalities from around the country have already received IFRRU 2020 funding.

In 2021, most public allocation was set at a fixed rate of 0%, a unique opportunity for beneficiaries of the Financial Instrument for Urban Rehabilitation and Revitalisation – 2020. The programme will remain in effect until 2023, and no restrictions have been set on the type of beneficiaries or the future use of the rehabilitated buildings.

Translation: Richard Turner