[DEMO] Cost of promoting affordable housing has been updated

Demonstration content. Text adapted from the Gaia Urban Observatory, with place names swapped. It does not describe real facts or data about the municipality of Loures.

With a view to strengthening the supply of real estate by mobilizing the private, public and cooperative sectors, the government considers it “urgent to immediately adjust some parameters of the calculation formula applicable to the cost of promoting HCC”, reads the preamble to Order no. 265/2025/1, of July 11, which amends Order no. 65/2019, of February 19, on the HCC regime.

This is because, justifies the Executive, the parameters currently provided for are “out of step with reality, taking into account factors such as the increase in construction costs, especially in urban rehabilitation areas, the increase in the cost of land and infrastructure, and the increase in costs associated with the new energy requirements of buildings”.

The new ordinance safeguards public works contracts for the construction of HCC, in which all bids have been excluded because they have presented contract prices higher than the base price, and which have been exceptionally awarded, in which case the development cost may be increased by up to 20%.

The new rules apply to controlled-cost housing certification procedures submitted after their date of entry into force (12-07-2025), as well as to previously certified procedures whose contract has been or will be exceptionally awarded, under Article 70(6) of the Public Contracts Code.

Image credits: © James Sullivan | Unsplash

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