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How can I find affordable homes for the middle class in Portugal?

Affordable homes for the middle class in Portugal are now more accessible thanks to new land regulations that allow municipalities to allocate rustic land for housing construction. This initiative is designed to ensure that at least 70% of new homes are sold at prices compatible with the income levels of middle-class families. These changes, initiated by the government, aim to alleviate the ongoing housing crisis by simplifying the process for constructing new dwellings, thus increasing the housing supply significantly.

The recent decree-law enables local councils to take charge of land management, empowering them to create new housing areas without the extensive approvals previously required. This means prospective buyers can look forward to a variety of housing options that meet their budgetary needs. The government has underscored its commitment to promoting social equity by enhancing the availability of decent housing.

Moreover, by focusing on regions with significant urban development potential, buyers can find properties that not only fit their financial criteria but also provide opportunities for rental income. The investment landscape appears promising, as properties developed under these new regulations are designed to attract a diverse demographic, offering potential for resale value appreciation.

Areas that will benefit from these changes include municipalities with growing infrastructure and amenities, making them ideal for family living and work-life balance. As urban areas are revitalised with new housing, buyers can enjoy convenient access to schools, parks, and public transport links. This is a wonderful opportunity for those seeking to secure a home in Portugal without breaking the bank.

In summary, the new policies are paving the way for affordable living for the middle class in Portugal. For those looking to invest in property or simply find a new home, now is the perfect time to explore these options. Contact us now to discuss your potential new home in Portugal!

Tuesday, 03 December 2024 - News
How can I find affordable homes for the middle class in Portugal?

A decree-law, approved on Thursday by the Council of Ministers, changes the Legal Regime of Territorial Management Instruments (RJIGT), exceptionally enabling councils and municipal assemblies to create new housing areas on land compatible with the urban area.

The process simplifies the availability of land, as this decision will depend solely on city halls and municipal assemblies, without the need for approval by other bodies.

However, at least 70% of these houses will have to be sold at “moderate prices”, resulting from the national median and the local median, because they are intended to increase the housing supply for the middle class, the government highlighted in a statement.

“This measure will increase housing construction in all municipalities, ensuring that homes are affordable for middle-class families and, at the same time, profitable for companies in the real estate sector. The lack of land has been one of the main causes of the high cost of housing”, considered Manuel Castro Almeida, Deputy Minister of Territorial Cohesion, cited in the statement.

City halls continue to have to respect the specificities defined for national agricultural and ecological reserves.

For example, construction remains prohibited “on units of land with high suitability for agricultural use, under the terms of the National Agricultural Reserve”.

“As for the National Ecological Reserve, the fundamental natural values ​​and functions continue to be protected, as well as the risks to people and property”, is highlighted in the approved diploma.

Also mentioned in the statement, the Minister of Infrastructure and Housing, Miguel Pinto Luz, considered that the measure “will promote greater social equity by allowing more housing construction and, consequently”, increasing the supply of affordable homes.

Pinto Luz highlighted that “solving the country’s housing problem is a national urgency” and assured that the Government “is committed to implementing the measures of the Construir Portugal program” so that everyone has “access to decent housing”.

 

Source: https://www.theportugalnews.com/news/2024-12-02/new-land-rules-to-help-middle-classes-buy-homes/93933

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