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Why are new construction rules important for home buyers?

The new construction rules in Portugal play a vital role in making home ownership more accessible for buyers, particularly from the middle class. These regulations empower municipalities to allocate more rustic land for residential building, addressing the acute shortage of affordable housing. By ensuring that at least 70% of these new homes are sold at moderate prices, the government is directly targeting the pressing needs of everyday families. This proactive approach simplifies land development processes and promotes fairness across the housing market. The result is a diversified inventory of properties that cater to varied income levels, which is essential for community growth and social equity. Buyers can look forward to a notable rise in available homes, enhancing their chances to find a dwelling that aligns with their financial means. Additionally, the increased construction activity is expected to boost local economies and create new jobs—a win-win for everyone involved. With greater rental opportunities presented by new homes, investors can also benefit from solid returns. Embrace this unique moment to take part in the changing landscape of property buying in Portugal. Whether you're searching for your first home or considering an investment, these new regulations may provide the perfect opportunity. Don't hesitate to reach out and find out more about the properties available today!

Tuesday, 03 December 2024 - News
Why are new construction rules important for home buyers?

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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