Portugal Approves Housing on Rural Land to Boost Supply

The Government approved a new decree on Thursday, 28 November 2024, during a Cabinet meeting, which relaxes the land use law. This exceptional framework allows construction and urban development on previously restricted areas, including land classified as rural, subject to approval by local councils. These areas will be used for public housing or homes priced at “moderate values.”

The Minister for the Presidency, António Leitão Amaro, announced after the Cabinet meeting that the Government had introduced measures to “reduce bureaucracy,” including the creation of an “exceptional framework enabling municipal authorities to approve construction and development in areas where it is currently prohibited.”

According to the Government, 70% of this development must be designated for public housing or homes at moderate prices, explicitly excluding luxury housing, as reported by Lusa.

António Leitão Amaro clarified that the measure would protect environmentally sensitive areas, including the Natura 2000 Network (conservation zones for habitats and endangered wildlife), high-potential agricultural land, and other high-risk areas.

The Council of Ministers’ statement explains that this decree, which amends the Legal Framework of Territorial Management Instruments (RJIGT), aims to address the growing demand for affordable and dignified housing. The proposal now moves to consultations with the National Association of Portuguese Municipalities and other relevant entities.

The framework seeks to establish a special process for reclassifying land as urban, requiring the majority of such areas to be allocated to public housing or housing at moderate prices. The newly introduced concept of “moderate-value housing” intends to make housing accessible for the middle class, balancing local and national market prices to promote social equity. The exceptional framework, subject to municipal decisions, will not apply to areas of high environmental risk, nature conservation, or prime agricultural land.

Architects Welcome the Decision

The President of the Order of Architects (OA), Avelino Oliveira, expressed satisfaction with the Government’s decision, noting that it incorporated some of the organisation’s recommendations.

“With the necessary precautions that changing land use laws entails, this decree aligns with several of our goals. There will now be an interesting coordination effort between the Ministry of Infrastructure and the Ministry of Territorial Cohesion,” he said.

Oliveira added that “municipal executives and assemblies, due to their proximity and control over local territories, will have improved tools to design and shape their areas.

IN: idealista.pt

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