Portugal Eases Urbanization of Rural Land: Impacts and Opportunities in the Algarve and Beyond

Recently, the Portuguese government approved measures to make construction on rural land easier, aiming to increase the availability of housing. These changes are part of the "More Housing" program, which includes the possibility of converting rural land, even areas within the National Agricultural Reserve (RAN), into urbanizable land, provided they are classified by municipalities as suitable for construction.

This change seeks to reverse the devaluation of rural land that occurred after the elimination of the urbanizable land category in 2014. Now, property owners may see a revaluation of these lands, especially if they are located in urban perimeters or adjacent areas. However, the legislation requires that municipalities approve these conversions on a case-by-case basis.

Moreover, the recent reform of rural property includes efforts to consolidate and enhance rural land, which is often fragmented due to inheritances. This measure is crucial to address problems such as inadequate forest management and the risk of wildfires.

These changes are seen as a boost for the real estate market in rural areas, offering new opportunities for landowners and investors (RTP, Agroportal, Twinkloo).

Currently, approval has already been confirmed in municipalities such as Lisbon, Porto, Setúbal, and some areas of the Algarve, among others. Implementation is being done through a simplified process, eliminating the need for lengthy consultations and other bureaucratic procedures. Additionally, the ownership of reclassified lands will belong to the State, with priority given to areas near existing urban zones (MdME Forward Thinking Law, ECO).

In the Algarve, the recent reclassification of rural lands to urbanizable will impact various areas, including regions such as Albufeira, Lagoa, Tavira, and Portimão. These municipalities are adapting their urbanization and development policies to attract investment and accommodate population and tourism growth.

For example, areas in Albufeira and Tavira, known for their tourism importance, are being prepared for new urban development projects. This reclassification could influence both the increase in housing construction and the expansion of commercial and tourist enterprises.

However, there are concerns about the environmental impact, especially regarding protected areas and natural reserves. The urbanization of previously rural lands could put additional pressure on local ecosystems, such as the Ria Formosa, and increase the consumption of natural resources like water in a region already vulnerable to prolonged droughts.

Steps Required for the Reclassification of Rural Land to Urban in Portugal:

For the reclassification of rural land to urban to proceed, several steps still need to be followed:

1. Municipal Approval: Each municipality needs to evaluate and approve land reclassification proposals, considering local guidelines and compatibility with municipal land-use plans. Municipal decisions are crucial, as they determine which areas are prioritized for urban development (MdME Forward Thinking Law).

2. Simplified Licensing Procedure: Local authorities must follow the new simplified licensing procedure, which includes using electronic platforms for submitting and tracking applications, with shorter deadlines and less bureaucracy, as established by Decree-Law No. 135/99 (MdME Forward Thinking Law).

3. Public Consultation (if applicable): Although reclassification follows simplified procedures, some cases may require a public consultation period, especially if the reclassified area is significant or has relevant environmental impact.

4. Execution of Works: Once reclassifications are approved, developers can start construction projects under the new rules that allow for more flexibility, such as the possibility of using modular constructions. These projects must comply with established legal and regulatory standards (MMC).

5. Monitoring and Supervision: Finally, it is essential for local authorities to monitor the execution of projects, ensuring compliance with the approvals granted and existing urban and environmental regulations (ECO).

These steps are crucial to ensure that the reclassification process effectively contributes to increasing housing availability in Portugal without compromising urban and environmental sustainability.

Environmental Impact Considerations

The reclassification of rural land to urban in Portugal could have significant impacts on environmental reserves, especially in areas such as the National Agricultural Reserve (RAN) and the National Ecological Reserve (REN).

1. Impact on the National Agricultural Reserve (RAN): Converting rural land, including those within the RAN, to urbanizable land could reduce the area available for agriculture, impacting agricultural production and food security. This change may lead to the loss of fertile soils and compromise sustainable agricultural ecosystems, which concerns environmentalists and farmers (MMC).

2. Impact on the National Ecological Reserve (REN): The REN is intended for the protection of sensitive areas, such as flood zones, coastal areas, and protection forests. Urbanization of these areas could increase the risk of natural disasters, such as floods and landslides, and affect local biodiversity. Transforming land within the REN could compromise the integrity of protected ecosystems and cause environmental imbalances (MMC).

3. Environmental Pressures and Sustainability: Urban expansion into areas previously protected or used for agricultural purposes can increase pressure on natural resources, such as water and soil, and contribute to habitat fragmentation. This process can hinder the maintenance of ecological corridors essential for local fauna and flora, compromising the ecological connectivity necessary for the survival of various species (ECO).

To mitigate these impacts, it is crucial that reclassifications are carried out with strict criteria and that environmental compensation measures are adopted, such as the creation of new protected areas or the restoration of degraded ecosystems. Moreover, sustainable urban planning and supervision are fundamental to ensure that housing development does not compromise essential environmental reserves for the country’s ecological balance.