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What are the new land rules for buying homes in Portugal?

The new land rules established in Portugal represent a pivotal shift for home buyers, particularly aimed at the middle class. These regulations empower municipalities to allocate rustic land for residential construction, with a focus on ensuring affordable pricing. At least 70% of developed homes will be available at prices aligned with the local and national medians, making home ownership more achievable for families across the country.

The simplification of the approval process means that buyers can expect a faster turnaround on new housing developments. City halls are now responsible for creating housing zones without the previous bureaucratic hurdles, streamlining the entire process. This initiative not only meets the growing demand for homes but also addresses the issue of high pricing stemming from a lack of available land.

Real estate investors will find these changes beneficial, as the influx of new housing options is sure to satisfy the criteria for moderate pricing, creating a competitive market landscape. Additionally, the increased availability of homes presents a robust opportunity for rental properties, significantly enhancing ROI potential.

The significance of these reforms cannot be overstated, as they foster greater access to quality housing and promote social equity. With the government prioritising the housing needs of the middle class, communities can expect enhanced infrastructure and amenities accompanying new developments.

Property seekers will benefit from living in well-planned areas with schools, parks, and essential services nearby. This blend of convenience and affordability is perfect for young families looking to settle down. Those interested in finding a home in Portugal will explore a multitude of new opportunities and neighbourhoods that were previously inaccessible.

As these new land rules take effect, now is the optimal time to delve into the growing property market in Portugal. Reach out to us today for guidance on how you can benefit from these exciting new developments!

Tuesday, 03 December 2024 - News
What are the new land rules for buying homes 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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