The Portuguese government has deferred the review of the land use law, which is intended to expand the availability of housing plots. Although the amendments were initially expected by July 12, the Ministry of Infrastructure and Housing has not set a new deadline. The ministry is progressing with these amendments in conjunction with other proposed measures.
Deputy Minister of Territorial Coordination, Manuel Castro Almeida, clarified on June 26 that the legislative adjustments aim to increase the number of plots available for residential construction. However, no new timeline has been established for the introduction of these changes. Concurrently, the Lisbon Municipality has opposed the relaxation of the land use law, citing concerns over potential real estate speculation and corruption.
Almeida also highlighted that the government is contemplating legislative changes to enable municipalities to expand urban boundaries where necessary. However, the left bloc argues that such changes could undermine municipal master plans and result in unjustified profits from increased land values, which contradicts international norms.
Conclusion for Investors
Investors should closely monitor the legislative developments regarding Portugal’s land use law. While the government’s proposed amendments could potentially increase the availability of housing plots and stimulate the real estate market, the opposition from the Lisbon Municipality and the left bloc indicates significant concerns about market speculation and corruption. Understanding the impact of these legislative changes and the balance between increasing housing availability and maintaining market stability will be crucial for making informed investment decisions in the Portuguese real estate sector.
Source: Expresso
