The Land Law: housing on rustic land — what the rules allow
Since 29 January 2025, Decree-Law n.º 117/2024 — the «Land Law» (Lei dos Solos) — allows rustic land to be reclassified as urban for housing purposes, by municipal decision. The regime is, however, narrower than the headline suggests: it rests on demanding cumulative requirements and on absolute exclusions. It is worth separating what it allows from what it forbids.
1. What the special regime allows
Reclassification can now be approved by the municipal bodies, without higher-level oversight, when the destination is housing. The process requires technical justification, public consultation and the delimitation of an execution unit — it is not an administrative shortcut, it is a full procedure with rules of its own.
At least 700/1000 of the above-ground building area must be allocated to public housing or moderate-value housing — and the operation must guarantee infrastructure, facilities and coherence with the existing urban area.
Source: Decreto-Lei n.º 117/2024, of 30 December — Diário da República
2. What is possible — and what is not
ELIGIBLE
· contiguous and coherent with the existing urban fabric
· ≥70% public or moderate-value housing
· delimited execution unit
· infrastructure and facilities guaranteed
· consistent with the local housing strategy
EXCLUDED
· REN and protected areas
· risk zones (floods, fire, instability)
· RAN of classes A, A1 and B — absolute bar
· hydro-agricultural schemes
· land without aptitude or viable infrastructure
The exclusion of RAN classes A, A1 and B deserves emphasis: it is an absolute bar, which also closes the alternative routes of non-agricultural use. On land with these soil classes, the regime offers no path — we have verified this in real cases, with confirmation from DGADR itself.
3. Moderate-value housing: the caps
The regime’s key concept has price limits indexed to INE medians: the sale value cannot exceed certain multiples of the national and municipal median. In expensive markets — Lisbon, Cascais, Porto — this means selling below current open-market values, which strongly constrains the business model and explains why the regime did not trigger the rush some expected.
“The Land Law did not turn rustic land into urban plots: it created an affordable-housing instrument with a municipal entry door — and that is how investors should read it.”
Tiago R. Correia
Architect
Before buying a rustic plot «with potential», read the 10 verification steps — and ask for the technical reading of LANDSCOPE.
Frequently asked questions
Can any municipality reclassify?
It can start the procedure, meeting the decree’s cumulative requirements — including public consultation and an execution unit. It is a planning decision, not a standalone order.
My land is in the REN. Is there hope?
For this regime, no — the REN is an express exclusion. What remains are the compatible uses provided for in the REN regime itself, which are limited.
Is it worthwhile for private development?
Only with the right model: ≥70% of the buildable area in moderate-value housing caps the margins from the outset. It works for those who design the product for that framework — not for those expecting the open market.
Do you own rustic land and want to know what is possible?
We analyse the soil class, the exclusions and the viable path — before any purchase commitment.
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