Portugal Government Scraps Affordable Housing Requirement for Urban Development: What This Means

Government Policy Change

The Portuguese Government has made significant changes to its initial decree-law aimed at facilitating the conversion of rural land into urban areas for housing development.

Previously, affordable housing was a mandatory requirement for municipalities to approve such conversions. However, this condition has now been removed. Instead, the new stipulation requires that at least 70% of the total construction area on these lands must be allocated for public or moderately priced housing. This shift raises concerns as it opens the door to potential speculation in the housing market.

In response to criticism regarding this decision, the Government maintains that affordable housing is still encompassed within the broader category of public housing.