The Portuguese property market is entering 2025 with an exciting new development for investors, developers and homeowners: the possibility of building on rustic land.
This change, introduced by a recently published decree, will redefine the limits of real estate possibilities and create new opportunities for growth and innovation.
What does the new law allow?
The decree, published in December 2024, allows construction on rustic land under specific conditions.
Traditionally, rustic land was reserved for agricultural, forestry or ecological purposes, and building on these plots was heavily restricted.
However, the new legislation introduces flexibility, opening the door to certain types of construction projects.
Here's what you need to know:
- Residential housingThe law allows primary residences to be built on rustic land, as long as the project is in line with the ecological and sustainable use of the area.
- Tourism developmentInvestors can also explore opportunities for ecotourism projects, such as rural lodges and sustainable retreats, which are gaining popularity in Portugal.
- Infrastructures for agriculture and sustainabilityConstruction related to agricultural operations, renewable energies or sustainable development is also permitted.
Main requirements and guidelines
Although the law offers new opportunities, it is not without its restrictions. To build on rustic land:
- Projects must respect the ecological value of the land and seek to minimise environmental impact.
- Municipal authorities must approve all plans, ensuring that they are aligned with local land-use regulations and sustainability objectives.
- Certain areas, such as those protected for ecological or cultural reasons, remain off-limits.
What does this mean for investors?
This legislative change creates interesting possibilities for investors and developers:
- New development opportunitiesWith a wider range of land available, developers can exploit previously unexplored areas, often at lower acquisition costs than urban land.
- Rural tourism boom: The increase in demand for ecological and rural tourism experiences makes rustic land a prime choice for developing unique hospitality projects.
- Diversified investmentFor investors looking to diversify their portfolios, rural land offers an opportunity to combine the property sector with agriculture, sustainability or tourism.
Challenges to consider
Despite the opportunities, there are challenges to consider:
- The approval process for municipalities can be complex and time-consuming.
- Sustainable and ecological requirements can increase construction costs.
- Investors should carefully assess the potential of each lot to ensure alignment with market demand and local regulations.
Why is this important?
This change in policy is in line with Portugal's focus on sustainable development, rural revitalisation and solving the housing shortage. By allowing construction on rustic land, the government aims to
- Attracting investment to rural areas.
- Promoting balanced development throughout the country.
- Increasing the supply of housing in a market with growing demand.
How can Invest351 help?
At Invest351, we are committed to guiding our clients through the complexities of the Portuguese property market.
Whether you're an investor exploring opportunities in rural tourism, a developer looking for affordable land, or an owner looking to build your dream property, our team can provide expert advice and support.
From identifying the right land to guidance on the legal and regulatory framework, we are here to ensure the success of your project.
Contact us to find out how this legislative change can be utilised to achieve your investment goals.