Funchal Approves Revision of 'Habitar Funchal' Program for More Affordable Housing

Municipality strengthens affordable rental response with two million euros and adaptation to new legislative framework.

Generic image of the facade of a Portuguese municipal building with traditional azulejo tiles.
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Generic image of the facade of a Portuguese municipal building with traditional azulejo tiles.

The Funchal Municipal Chamber unanimously approved the revision of the “Habitar Funchal” program, for affordable rental, adapting it to the new legislative framework for accessible renting.

The measure will allow the municipality to use the rental market to subsequently provide housing to citizens who meet the program's access conditions. According to Jorge Carvalho, the change became necessary following the recent revision of the national accessible renting scheme, which provides tax benefits for property owners and strengthens housing supply through municipalities.
The president of the Funchal Municipal Chamber indicated that the municipality has allocated two million euros for this program, with the process expected to move forward in February 2027.
In the same meeting, an amendment to the project for Praia Formosa was approved by majority. The solution includes 420 parking spaces (360 underground and 670 on the surface), 160 more than the current approximately 260, while maintaining eight access points to the beach, a garden of about 38,000 square meters, and commercial spaces.
Jorge Carvalho stated that the proposal seeks to ensure a balance between parking needs, mobility, and the environmental and sustainability requirements for the area. The president also highlighted that future parking will be paid, arguing that this solution will allow for greater turnover of spaces and facilitate access for different users to the beach, garden, and existing services.
Access to the beach will be public and free. The start of the intervention remains dependent on private developers and the resolution of a pending legal action.
Based on information from the official source: Câmara Municipal do Funchal (22/10/2026)