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Why are the latest land developments crucial for home buyers in Portugal?

The latest land developments in Portugal are crucial for home buyers, particularly those within the middle class, as they improve access to affordable housing solutions. Recent policy changes empower local councils to allocate rustic land for housing, facilitating the creation of new residential areas. These new regulations stipulate that a minimum of 70% of homes built must be priced within the financial reach of the median income, directly tackling the affordability crisis.

The government's initiative reflects a significant shift in focus, aiming to increase the housing supply and improve social equity across the nation. As new homes become available, families will have a better chance of finding quality living spaces that fit their budgets. This progress is essential in a market long affected by land scarcity and rising housing costs.

With the authority to bypass lengthy approval procedures, municipalities can now respond rapidly to the demand for homes, helping aspiring buyers secure properties in prime locations. This means buyers can expect new developments not only in established urban areas but also in up-and-coming neighbourhoods, offering diverse options for every lifestyle.

Investors will also find these developments appealing, as the commitment to creating affordable housing fosters a stable investment environment with potential rental opportunities. The anticipated growth in housing availability is likely to attract a variety of demographic groups, enriching communities and stimulating local economies.

As municipalities undertake these developments, understanding the advantages they offer can help home buyers make informed decisions. Key factors such as proximity to essential services and future community planning will play an important role in choosing the right property. Now is an excellent time for buyers to explore these developments and secure homes that cater to their needs.

Get in touch with us to discover how you can benefit from these new housing initiatives in Portugal!

Tuesday, 03 December 2024 - News
Why are the latest land developments crucial for home 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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