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What new land rules are helping buyers in Portugal?

Recent land rules in Portugal are set to deeply benefit property buyers, particularly those from the middle class. The government's decree allows municipalities to designate more rustic land for construction, ensuring that homes are built at prices commensurate with the communities' income. A significant component of this initiative is that at least 70% of these new homes will be available at moderate prices, directly addressing the pressing need for affordable housing. This policy change simplifies the approval process, which is now solely dependent on local councils, thus expediting the building of new homes in a timely manner. The goal is to increase social equity in housing and provide more families with access to suitable living arrangements. The initiative responds to the long-standing issue of high housing costs, which have left many families struggling to find homes within their financial reach. With greater construction opportunities, buyers can look forward to a broader range of options tailored to their needs. The positive effects extend beyond families, also offering a boost to local employment and the economy. As a potential buyer, these developments present a timely chance for investment in the real estate market. Be sure to explore the variety of newly available properties stemming from these land rules. Contact us today to discover your future home!

Tuesday, 03 December 2024 - News
What new land rules are helping buyers 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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