New Legislation Allows Construction on Rustic Lands

The decree-law permitting construction on previously prohibited lands was published this Monday in the Diário da República, set to take effect in a month. Following the President's approval of the law that creates an exceptional regime for construction and urbanization in restricted areas, the government has made significant changes to the Legal Regime of Territorial Management Instruments (RJIGT).

Key Provisions of the New Law

The government has emphasized that this new law will allow construction on lands classified as rustic, as well as those designated as REN (National Ecological Reserve) and RAN (National Agricultural Reserve), while ensuring that their most critical zones are protected.

The government argues that increasing the availability of land will facilitate the development of housing solutions that meet controlled cost criteria and are offered at affordable prices, ultimately promoting greater social equity and enabling Portuguese families to access dignified housing.

Special Reclassification Regime

The special reclassification regime stipulates that at least 70% of the total construction area must be allocated for public or moderately priced housing. The government clarified that this will not include housing at “controlled costs” but will focus on making homes accessible to the middle class, considering median values from local and national markets.

The law also aims to expand the 'Build Portugal' plan and enhance the state's ability to implement effective housing policies that align with the population's needs.

Restrictions and Safeguards

Construction on lands with high agricultural potential remains prohibited, and the values and essential natural functions of the National Ecological Reserve will continue to be safeguarded. Additionally, reclassification from rustic to urban land requires a decision from the municipal assembly, based on proposals from the municipal chamber.

If urban operations are not carried out within five years, the classification as urban land will automatically lapse.

Municipalities have the authority to simplify the reclassification process for housing purposes, but areas within the National Classified Areas System, hazardous zones, or those at risk of flooding are excluded from urbanization.