Portugal Greenlights Urban Expansion for Affordable Housing

Portugal's parliament has approved a bill to reclassify rural land for urban use aiming to address a growing housing crisis. With 70% designated for public or affordable housing, the move faces opposition from environmental groups, concerned about urban expansion affecting natural areas.

Portugal's parliament has voted in favor of a bill that will facilitate the reclassification of rural land for urban purposes, as part of a government initiative to tackle the escalating housing crisis.

The legislation, which grants municipalities new authority over land-use decisions, has been met with criticism from environmental organizations. These groups argue that the policy will lead to harmful urban expansion in areas valued for their natural significance.

With rising property speculation, the government commits to setting maximum pricing well below market rates. However, concerns persist amid a backdrop of soaring rents and property prices, exacerbated by foreign investment driven by favorable state residency and tax policies.

(With inputs from agencies.)