The Portuguese government has recently approved significant amendments to the Land Law, enabling the construction of residential properties on land classified as rustic. This initiative aims to increase the supply of public and affordable housing, particularly for middle-class families, while excluding luxury real estate projects.
The new legislation opens opportunities for landowners, municipalities, builders, and real estate developers. Rustic land can now be more easily converted into urban land, provided it is used for the construction of affordable housing for families.
However, there are exceptions to this rule. Areas with potential for agricultural use and priority zones under the National Ecological Reserve (REN), National Agricultural Reserve (RAN), and Natura 2000 Network will remain protected to ensure environmental preservation and a balance between housing development and resource conservation.
This amendment represents a significant shift in Portugal’s land-use policies, offering greater flexibility in land utilization and promoting the construction of affordable homes in areas where it was previously not possible.
It is anticipated that this measure will contribute to addressing the country’s housing crisis by creating new business opportunities and facilitating access to housing for Portugal’s middle class.
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