Change in Land Law to Allow Housing Construction on Rustic Land

On November 28, the Government approved a decree at the Council of Ministers that relaxes the Land Law, enabling municipalities to release land, including rustic plots, for the construction of public or low-income housing.

The decree aims to simplify and make land-use legislation more flexible, allowing municipal councils to unlock plots for residential construction. This measure is part of the "Building Portugal" program, introduced in May, and will undergo public consultations before being implemented.

According to António Leitão Amaro, Minister of the Presidency, the goal is to "ease land-use rules by creating an exceptional regime that permits municipal authorities to approve construction, urbanization, and development in areas currently restricted, including land classified as rustic, and those designated as REN (National Ecological Reserve) and RAN (National Agricultural Reserve), though not in their most critical zones."

A key condition for utilizing these lands is that 70% of the construction must be allocated to public or low-income housing, explicitly excluding luxury projects.

The minister emphasized that this measure is designed to meet families' housing needs and will serve as a "significant accelerator" in increasing the availability of affordable homes in the country.

The approved decree also includes safeguards to protect sensitive areas within the National Ecological Reserve, National Agricultural Reserve, and Natura Network, as well as high-potential agricultural lands, ensuring balanced development.

This initiative is regarded as a strategic step to address Portugal's housing crisis while striving to balance urban development with environmental protection and territorial sustainability. The measure will now undergo extensive public debate before its final implementation