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What are the implications of the new land laws for building homes in rural areas?

The new land laws in Portugal allow builders to construct homes on rural land, marking a significant shift in housing development. This change is set to provide greater opportunities for affordable housing, although local mayors express concerns about potential challenges that these new regulations might bring. Key among these concerns is that while the new law requires 70% of land to be dedicated to public housing or affordable rental units, it could also lead to unwanted development of other types of construction on rustic land, complicating urban management. Furthermore, extra infrastructure costs associated with developing this land must be factored in, presenting financial challenges for builders. This potential for diverse interpretations of the law warns of significant pressures on existing urban planning systems. Property investors should consider the implications of these new developments when assessing their next investment. Moreover, the law's coexistence with other land regulations may lead to complicating factors for builders. It's important for prospective buyers and developers to stay informed about how these changes will affect land availability and pricing. As the law comes into effect, continued dialogue between the municipalities and the government will be essential to navigate these new waters. Interested parties should keep an eye on how local governments adapt their plans in response to these regulations. For those eager to explore land or housing options under the new laws, contacting a local real estate expert could provide valuable insights and guidance on available opportunities.

Monday, 06 January 2025 - News
What are the implications of the new land laws for building homes in rural areas?

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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