Understanding the New Land Law

The new decree-law amending the Regime Jurídico dos Instrumentos de Gestão Territorial (RJIGT) allows for the reclassification of rustic land to urban for housing purposes, which has raised significant concerns among experts, environmentalists, and politicians.

What Does the Law State?

The decree-law 117/2024, enacted on December 30, enables a simplified process for transforming rustic land into urban areas, provided that the land is designated for housing by municipal authorities. The government argues that this increased availability of land will facilitate the creation of housing solutions that meet controlled cost criteria, promoting social equity and ensuring access to decent housing for Portuguese families.

The law mandates that at least 70% of the total construction area on the site must be allocated for public housing or moderate-value housing. However, the government clarifies that this does not equate to housing at controlled costs, but rather homes for the middle class based on median values from local and national markets.

Key Changes in Land Use

The modification allows for construction on land with moderate agricultural suitability, as well as areas that may have high erosion risks or poor drainage. However, it prohibits reclassifying areas within the National Classified Areas System, including hazardous zones or those at risk of flooding, among others.

Criticism and Concerns

Despite its promulgation, the law has faced backlash. Critics, including parties like Bloco de Esquerda and PCP, have called for parliamentary review, arguing that the measures will exacerbate speculative real estate practices and threaten environmental protections. Over 600 experts and former officials have signed an open letter criticizing the government’s approach, asserting it will not alleviate the housing crisis and may harm essential rustic land needed for food security.

Parliamentary Review and Future Implications

In response to public protests against the law, the BE, PCP, Livre, and PAN have requested parliamentary scrutiny. If the law is revoked, it will cease to be in effect following its publication in the Diário da República. Conversely, if amendments are made, they will be discussed in detail before a final vote.

Government's Standpoint

The Minister of Infrastructure acknowledges that while the land law is not a panacea for all housing issues, it is expected to lower housing prices. He expressed readiness to adapt the law based on feedback from the PS party, which has raised concerns about establishing a reference price for properties that may inadvertently increase sale prices.

The government maintains that the law aims to empower local authorities and adjust solutions to the specific needs of each municipality, emphasizing that only land unsuitable for agriculture or without ecological risks will be utilized for urban development.