The main objective of this amendment is to increase the availability of land for housing, in order to meet the growing need for decent and affordable housing in Portugal.
In this context, among other changes, a special regime was created to allow the reclassification of land as urban land, provided that the majority of its area is dedicated to social housing, affordable rental housing or low-cost housing. Under the new regime, at least 70% of the total building area must be reserved for one of these categories. This percentage is intended to ensure that the majority of the built area is effectively used for affordable housing for the middle class.
Affordable housing is defined as housing where the price per square metre of gross private area does not exceed the national median sales price or, if higher, does not exceed 125% of the municipal median, with a maximum of 225% of the national median.
Under this special reclassification regime for urban land, property owners interested in initiating the process must contact the City Council, as the municipal authorities carry out the procedure. The request must be submitted to the municipality, which must carry out a simplified amendment to the Municipal Master Plan (PDM) in order to implement the reclassification of the land.
A reasoned proposal is then drawn up and submitted for public consultation for a minimum period of 20 days. After this period, the City Council can make any necessary changes. Finally, the rezoning proposal is submitted to the Municipal Assembly for approval, ensuring that the final decision is made transparently. Although the process is led by the municipality, property owners can participate in the public consultation and provide relevant information to support the proposal.
This measure is part of the "Construir Portugal" programme, which aims to make land use regulations more flexible, allowing construction and urbanisation in areas previously classified as rural or part of ecological and agricultural reserves. The creation of this special reclassification regime is intended to make the process simpler and faster. However, it remains to be seen whether the measure will effectively address the housing crisis that the country has been experiencing in recent years.
In this context, among other changes, a special regime was created to allow the reclassification of land as urban land, provided that the majority of its area is dedicated to social housing, affordable rental housing or low-cost housing. Under the new regime, at least 70% of the total building area must be reserved for one of these categories. This percentage is intended to ensure that the majority of the built area is effectively used for affordable housing for the middle class.
Affordable housing is defined as housing where the price per square metre of gross private area does not exceed the national median sales price or, if higher, does not exceed 125% of the municipal median, with a maximum of 225% of the national median.
Under this special reclassification regime for urban land, property owners interested in initiating the process must contact the City Council, as the municipal authorities carry out the procedure. The request must be submitted to the municipality, which must carry out a simplified amendment to the Municipal Master Plan (PDM) in order to implement the reclassification of the land.
A reasoned proposal is then drawn up and submitted for public consultation for a minimum period of 20 days. After this period, the City Council can make any necessary changes. Finally, the rezoning proposal is submitted to the Municipal Assembly for approval, ensuring that the final decision is made transparently. Although the process is led by the municipality, property owners can participate in the public consultation and provide relevant information to support the proposal.
This measure is part of the "Construir Portugal" programme, which aims to make land use regulations more flexible, allowing construction and urbanisation in areas previously classified as rural or part of ecological and agricultural reserves. The creation of this special reclassification regime is intended to make the process simpler and faster. However, it remains to be seen whether the measure will effectively address the housing crisis that the country has been experiencing in recent years.
Source: NFS Lawyers