Recent changes in Portuguese law (Decreto-Lei n.º 117/2024) have sparked discussions about the reclassification of rural land for urban housing development. To provide clarity for our international clients interested in the Lagos and Western Algarve region, we’ve summarized the key points:
The Goal: Addressing Housing Needs
The primary aim of this legislative update is to increase housing availability in Portugal. However, it’s essential to understand that this initiative is not about individual, scattered housing projects. Instead, it focuses on promoting larger-scale, planned urban development.
Key Conditions for Reclassification
The reclassification of rural land for housing purposes is subject to strict conditions:
- Contiguity: The land must be adjacent to existing urban areas.
- Infrastructure: Necessary infrastructure (roads, utilities, etc.) and community facilities (schools, parks) must either exist or be developed as part of the project.
- Local Strategy: The project must align with the municipality’s housing strategy and plans.
- Affordable Housing: 70% of the total construction area must be designated for public or moderate-value housing.
Restrictions
Certain types of land are excluded from this reclassification process, including:
- National Agricultural Reserve: High-quality agricultural land (Class A and B).
- National Ecological Reserve: Environmentally sensitive areas like coastlines, wetlands, and protected areas.
- Protected Areas: Land within national parks and other protected zones.
- Specific Programs: Areas subject to special coastal or watercourse management plans.
What This Means for Buyers and Sellers
- For Buyers: This may lead to new, larger-scale residential developments in the region, potentially offering more housing options. However, it’s crucial to work with a knowledgeable agent to navigate the complexities of these projects.
- For Sellers: If you own rural land that meets the criteria and you’re interested in potential development opportunities, it’s advisable to seek expert advice to understand the process and requirements.
How We Can Help
At stevemarque.co, we stay informed about all regulatory changes that may impact the real estate market in Lagos and the Western Algarve. Whether you’re a buyer or seller, we can provide:
- Up-to-date information on land reclassification and development plans.
- Guidance on navigating the legal and administrative processes.
- Expert advice on property valuation and market trends.
Contact Us
If you have any questions or would like to discuss your real estate needs in light of these changes, please don’t hesitate to contact us.
Important Note: This information is for general guidance only. It’s essential to consult with legal and technical professionals for specific advice related to land reclassification and development projects.
