This new measure will allow municipalities greater flexibility in utilizing land previously restricted to non-urban uses, creating opportunities for the construction of public and moderately priced housing. The proposal, part of a broader national housing initiative, reflects a commitment to expanding housing supply while balancing environmental and agricultural concerns.

Under the proposed changes, municipalities will be empowered to authorize urban development on lands currently designated as rustic, including those classified within ecological and agricultural reserves. However, this flexibility will be exercised with clear limitations to protect the most sensitive areas. While lands within national ecological and agricultural reserves may be repurposed, critical zones within these classifications will remain safeguarded. This approach aims to strike a balance between expanding urban development and maintaining environmental sustainability.

The initiative focuses on addressing housing affordability, with specific rules to ensure that 70% of new construction on these lands will be dedicated to public housing or homes sold at moderate prices. Luxury housing will be excluded from these developments, ensuring that the new supply targets middle-income families who often face the greatest struggles in finding affordable housing. This is expected to be a significant driver of new residential projects, accelerating the availability of homes at accessible price points.

Municipalities will oversee the decision-making process, with final approvals resting with their local assemblies. This decentralized approach allows for tailored solutions that reflect the unique needs of each region. The legislation also emphasizes the preservation of agricultural lands with high potential and sensitive environmental areas, reinforcing the government’s commitment to sustainable development.

The changes come as part of a broader housing strategy introduced earlier this year, aimed at addressing the growing demand for affordable housing. By unlocking new possibilities for urban development, the government seeks to mitigate housing shortages and provide relief to families struggling with rising costs.

This legislative shift reflects a pragmatic approach to tackling one of Portugal’s most pressing social challenges. By repurposing land responsibly and prioritizing public and affordable housing, the country aims to enhance the availability of homes while respecting its commitment to environmental and agricultural preservation. The initiative represents a bold step toward building a more inclusive and sustainable future for all.

Author

Paulo Lopes is a multi-talent Portuguese citizen who made his Master of Economics in Switzerland and studied law at Lusófona in Lisbon - CEO of Casaiberia in Lisbon and Algarve.

Paulo Lopes