Silves has slammed the new law, which it says was approved without a public debate and could encourage real estate speculation
The municipal council of Silves has issued a statement on Portugal’s controversial new land law, which allows rural land to be reclassified so that affordable housing can be built on it.
The new law, published on December 30, 2024, and which came into effect on Wednesday, January 29, has sparked widespread debate, with Silves council condemning the “misinformation” about it “from countless entities and agents, especially from the media”.
In order to ‘set the record straight’, the council has clarified that this law does not mean landowners can simply start building wherever they want. In fact, the council points out the process is still bound by strict legal conditions, including:
- Amendment to the current Municipal Master Plan (PDM);
- Re-classification to urban land can only happen if it is in harmony with existing urban land, meaning isolated rural plots can only be developed if urbanised areas exist nearby;
- At least 70% of new buildings must be designated as affordable or moderately priced housing;
- The PDM must be formally amended to define a “unit of execution” (unidade de execução) – a specific area within the reclassified land where urbanization projects will take place;
- Proper urban infrastructure, including green spaces and other vital equipment for collective use, must be in place or planned before construction begins;
- Certain types of land, such as those with public use restrictions, cannot be reclassified – however, Silves council is concerned that some exceptions may allow development in environmentally sensitive areas, potentially “jeopardising the quality and safety of our future cities, and at the same time putting our families, resources and heritage at risk”.
Silves critical of new law
Despite helping clarify some aspects of the law, Silves council remains highly critical of it and how it was approved by the government.
Says the council, the law was approved without public input or debate and was even described by Portugal’s President Marcelo Rebelo de Sousa as a “significant distortion” of national and local planning laws.
In fact, the council says it wasn’t even invited to give its opinion by the Portuguese Municipalities Association (ANMP) until after the law was passed.
Meanwhile, Silves officials have raised serious concerns, warning that the law could encourage real estate speculation rather than genuinely increase affordable housing. They also argue that urban expansion should only happen after existing urban land is fully utilised, ensuring that current infrastructure investments are maximised before pushing into rural areas.
Another concern is that developers must complete urbanisation projects within five years, a deadline that may soon be shortened, increasing pressure on those trying to comply with the law.
Instead of approaching the issue of housing as this government has, Silves council believes the crisis should be targeted following four main measures:
- Stronger government investment in affordable housing and rent control, following its “constitutional right to build and provide more accessible housing to the population,” as well as regulate property and rental prices.
- More incentives for urban rehabilitation to bring abandoned buildings back into use;
- Fiscal policies that discourage property owners from abandoning land suitable for building, including higher IMI (property rates) penalties for abandoned urban land and derelict buildings;
- The repeal of the eviction law known as ‘Cristas Law’ (named after former minister Assunção Cristas) in order to protect existing rental contracts;
“In light of the serious housing crisis, the State must, now more than ever, stop being a hostage of the real estate market and begin being an entity that regulates it, to avoid reaching the state we are at, with most of the Portuguese population unable to enjoy their right to housing,” the council states.
The local authority adds that the new law is not the answer, criticising it for “creating false expectations” and being aimed mostly at “big investors”.
The council adds that it is monitoring and evaluating the implementation of its Municipal Master Plan (PDM) by preparing a Territorial Planning Status Report (REOT) to assess whether the PDM needs to be revised. The council’s goal is to ensure that urban planning policies stay up to date with current trends and can adapt to future needs in the short and medium term.
On a closing note, the council urges citizens to “remain alert and critical in light of the misinformation” that it says has been circulating about this subject, urging the population to use “safe and reliable sources of information”.
