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How will recent changes in land legislation affect property prices in the Algarve?

The recently enacted land legislation is poised to influence property prices in the Algarve significantly. With the new law enabling construction on rural land, we might see a rise in available housing, which could lead to more competitive pricing. While this initiative aims to alleviate the housing shortage, experts, including the mayors, project potential price fluctuations depending on how developments are implemented. Buyers can expect a variety of new properties becoming available, with a focus on affordable rentals and moderately priced homes. This may help meet the demands of middle-class families seeking residency in this beautiful region. However, it’s crucial for buyers to keep current with market changes, as new developments might initially drive prices up due to demand. Furthermore, the law specifies that a significant portion of constructed homes must remain affordable. Balancing the appeal of lower home prices with the associated costs of new infrastructure is essential for potential investors. It’s also helpful for buyers to understand the implications of these developments on long-term property values, especially in popular areas of the Algarve. By actively engaging with local property experts, buyers can navigate this evolving landscape effectively. Ready to find your Algarve dream home? Let’s discuss your options today!

Monday, 06 January 2025 - News
How will recent changes in land legislation affect property prices in the Algarve?

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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