Braga

Braga's city administration is actively addressing affordable and sustainable housing challenges through a multifaceted strategy. As part of its Local Housing Strategy (ELH), Braga has committed €123 million, the largest housing investment in its history, to increase housing supply and improve affordability by 2026. This strategy includes purchasing and rehabilitating properties for low-income families and expanding Urban Rehabilitation Areas (ARUs) to nearly double their size, encouraging the regeneration of degraded areas and fostering sustainable urban development.

Concrete activities under this approach include acquiring 15 housing units with rehabilitation needs and launching a public offering for land acquisition to construct more affordable housing. Tax incentives such as reduced VAT, income tax benefits, and exemptions on urban rehabilitation activities aim to motivate property owners to provide affordable housing. The city also emphasizes sustainable practices, revising its Municipal Master Plan to unlock land for housing and streamline building processes. Additionally, Braga's ARU investments focus on integrating energy-efficient solutions and environmentally friendly urban spaces to promote sustainability in housing development.

These measures highlight Braga's commitment to tackling its housing crisis. The phased, long-term strategy blends social housing solutions with urban sustainability, targeting vulnerable groups while fostering investment and economic growth. Through these initiatives, Braga seeks to balance affordability and sustainability, ensuring better housing for its growing population.

In Braga, the housing market is experiencing notable shifts. As of early 2025, the median property price for purchasing an apartment is approximately €1,520 per square meter, significantly lower than the national average of €2,742. Rental prices have also seen increases, with the average rent reaching €9 per square meter. A strong rental yield, averaging 5.37%, makes Braga attractive for investors, although this is slightly below the national average. Homeownership is more common than renting in Braga, reflecting a broader Portuguese trend where homeownership rates are high compared to other European nations.

Public housing in Braga is managed mainly through BragaHabit, the municipal housing entity. Public housing includes programs like supported rentals, shared residences, and subleased housing, aimed at low-income families or individuals in financial vulnerability. BragaHabit also provides subsidies for private rents and mortgage support for owner-occupied housing. Public housing in Braga often integrates social housing but extends beyond it, with broader programs addressing diverse housing needs, such as energy poverty improvements for private homeowners.

In summary, Braga is a growing housing market with affordable purchase prices and competitive rental yields. Public housing initiatives, distinct yet overlapping with social housing, play a crucial role in addressing housing affordability challenges, particularly for young families and low-income groups. However, rising costs for both renting and purchasing signal mounting pressures in the city's housing sector.