The Portuguese Parliament approved earlier this year a measure that could significantly change the country's housing landscape. The new legislation allows municipalities to reclassify currently rural land as urban, provided that 70% of the area is allocated to affordable housing projects.
According to the Government, this change will unlock thousands of hectares for construction, with the aim of creating around 59,000 new homes by 2030. Priority will be given to middle-income families and young people, seeking to meet the growing demand and lack of supply in the market.
For investors, the measure represents a strategic opportunity: new developable areas will emerge in previously untouched areas, many of them close to urban centers, with high potential for appreciation. Furthermore, the diversification of supply is expected to bring more dynamism to the sector and promote sustainable long-term growth.
Industry experts consider this change an important step towards balancing the real estate market, ensuring that Portugal maintains its attractiveness for both domestic and foreign buyers.