Portuguese Government has decided to allow municipalities to allocate land for construction. This decision has been taken to increase the number of homes at an economic price. Middle-class citizens will most benefit from this decision.
New Land Rules
Municipalities are looking to help middle-class families in Portugal buy affordable homes. The Council of Ministers has approved a decree law that has changed some of the land rules in the country. The Legal Regime of Territorial Management Instruments (RJIGT) was changed last week. The new land rule states that municipalities and councils can create new housing areas on land that are compatible with the urban region.
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The overall process for any available land is much simpler after the introduction of the new land rule. Now, the decision to create new housing depends on municipal assemblies and city halls. These government bodies will not be liable to ask for approval from any other organization. It is aimed that at least 70% of the houses according to the new land rules will be sold at an affordable price. This makes it much easier for the middle-class citizens to afford a new house for their family.
These new houses will be sold at a moderate price which will change the national median and the local median for property values. The Portuguese Government aims to increase the number of houses for middle-class citizens. The Deputy Minister of Territorial Cohesion, Manuel Castro Almeida stated:
This measure will increase housing construction in all municipalities, ensuring that homes are affordable for middle-class families and, at the same time, profitable for companies in the real estate sector. The lack of land has been one of the main causes of the high cost of housing.
City Halls Will Allocate Housing Land
The government of Portugal has given the power to allotment of housing land to city halls. It is the responsibility of the city hall to ensure the national agricultural and ecological reserves are respected. City Hall has ensured not to allocate housing land in an agricultural area. A statement from the higher authorities reads:
[Construction is prohibited] on units of land with high suitability for agricultural use, under the terms of the National Agricultural Reserve. As for the National Ecological Reserve, the fundamental natural values and functions continue to be protected, as well as the risks to people and property.
Miguel Pinto Luz, the Minister of Infrastructure and Housing openly accepts this decision from the Portuguese government. He believes this will promote greater social equity if more houses are constructed within the region. The most benefit from this decision will be achieved by the middle-class citizens who will now be able to afford a house. Pinto Luz gave a statement which reads:
Solving the country’s housing problem is a national urgency. [Government] is committed to implementing the measures of the Construir Portugal program [so that everyone has] access to decent housing.
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