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How can I invest in properties following the new land legislation in Portugal?

Investing in properties following the new land legislation in Portugal opens a range of opportunities for buyers. The new laws facilitate higher construction possibilities on rural land, allowing for a greater supply of affordable housing options, potentially enhancing return on investment (ROI) for investors. However, it's crucial to navigate the associated challenges, such as additional infrastructure costs and the possibility of varied interpretations of the law that could influence project viability. Buyers interested in this market should consult with local experts who understand the legal landscape and its implications on property development. Moreover, the requirement that a significant percentage of constructed homes be for public and affordable access offers a unique angle for investors looking to meet community needs while generating income. Proximity to urban centres can also significantly impact investments, as areas offering access to amenities tend to rise in value. Understanding local urban planning contexts will be fundamental to making informed investments. Now is the ideal moment for savvy investors to explore the evolving landscape and seize opportunities as they arise. Keep yourself updated on local market trends and governmental responses to the new legislation. Contact a professional to help you navigate the intricacies of investing under the new regulations.

Monday, 06 January 2025 - News
How can I invest in properties following the new land legislation in Portugal?

But the mayors warn that the diploma brings doubts and challenges, opening the door to the construction of other real estate projects in addition to houses. Furthermore, this new land law is not articulated with other laws exerting pressure on urban management.

The warning was given by the National Association of Portuguese Municipalities (ANMP) which gave its opinion on this new soil law. This diploma published in the Official Gazette of the Union this Monday, December 30th, already has the contribution of the mayors. And it will come into force within a month.

Although admitting to idealista that this new law could bring more houses to the outskirts and at lower prices, the ANMP led by Luísa Salgueiro now warns that this decree-law opens the door to the construction of other types of projects on land rustic, he told Jornal de Notícias. Keep in mind that the degree only requires that the majority of the area (at least 70%) be dedicated to public housing, affordable rental, or moderately priced housing.

Furthermore, the construction of houses (and other projects) has to take into account additional infrastructure costs, as land needs to be developed. And the mayors also warn that the new land law has gaps, which could generate different interpretations, and will also bring “great pressure to urban planning and management”, as it will touch on the Municipal Master Plans already approved by various entities, the same reads publication.

The President of the Republic had also warned, when he promulgated the decree-law on Thursday (26 December), that the new land law will cause “a significant disruption” in the territorial ordering and planning regime.

Because of this the ANMP now states that it doubts that the new land law will solve the problem of the lack of affordable homes for the middle class.

 

Source: https://www.theportugalnews.com/news/2025-01-04/new-land-laws-bring-doubts-and-challenges/94637

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