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

The new land laws present both opportunities and challenges for potential buyers in rural areas. Now that the law allows for the construction of houses on rustic land, buyers have expanded options for developing properties. However, mayors have expressed concerns that this change could lead to various interpretations and pressures on urban management. Buyers seeking affordable housing might benefit from lower prices with the introduction of new properties in outskirts areas. The National Association of Portuguese Municipalities warns that, while this legislation aims to address housing shortages, it opens the door to other types of real estate developments. Notably, at least 70% of space must cater to public or affordable housing, ensuring that buyers can find options that suit their needs. However, additional infrastructure costs for land development could affect overall investment. Understanding these implications is crucial for anyone looking to enter the rural property market. The law will also impact existing Municipal Master Plans, potentially reshaping the landscape in many areas. While the promise of construction is enticing, buyers should remain cautious about these new dynamics. Educating oneself on the details of such legislation can lead to better investment decisions. If you’re interested in exploring rural properties under these new regulations, contact us for tailored advice and options that align with your goals!

Monday, 06 January 2025 - News
What are the implications of the new land laws for buyers 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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