The proposals, put forth by Councillor for Housing and Municipal Works, Filipa Roseta (PSD), were endorsed in a closed council meeting and will now move to Lisbon’s Municipal Assembly for further approval regarding budget allocation and multi-year financial commitments.

Unanimously approved, the Vila Dias proposal includes a public tender for the renovation of the original buildings in this former workers’ district, as well as the construction of a new residential block. In total, 72 housing units will be created.

The project also involves upgrading the existing road network, urban infrastructure, and surrounding public spaces. The base cost is set at €13.46 million (VAT included), to be spent between 2026 and 2027. Funding support will come from the national housing programme “1.º Direito,” and the works are scheduled to last 720 days.

The council also approved, with abstentions from Livre and Cidadãos Por Lisboa (elected via the PS/Livre coalition), a €16.11 million (VAT included) project for the redevelopment of the masonry zone in Bairro Padre Cruz. The remaining councillors, including PSD/CDS-PP, PS, PCP, and BE, voted in favour.

This project, also to be contracted through public tender, aims to build 98 new housing units between 2025 and 2027, with a 720-day construction timeline. It marks the final stage in a broader rehousing effort started in 2011, which has already relocated 352 families and demolished 381 masonry homes.

Currently, 120 families still await rehousing. The new homes will complete this process, according to the council.

The council also greenlit a €2.99 million urban development plan for the Horizonte neighbourhood in Penha da Fraça, to be carried out from 2026 to 2029.