Not all rural land can be urbanised — but some now can. The new Land Law (Decree-Law No. 117/2024 of 30 December, in force since 29 January 2025) opened an exceptional regime for reclassifying rural land as urban to address the housing shortage. But under strict rules — and that is where legal analysis makes the difference.
What changed
It became possible, in a simpler and faster way, to reclassify rural land as urban through the territorial planning instruments. The stated aim is to increase the supply of land for housing — but the regime is exceptional and subject to conditions.
The essential conditions
Urban contiguity: only rural land adjacent to existing urban land can be reclassified, to avoid scattered construction and isolated “islands” in the territory.
Allocation to housing: as a rule, at least 70% of the above-ground construction area must be for public or controlled-cost housing and affordable letting, with limited margins for housing sold on the open market.
Protected areas: reclassification cannot cover the National Ecological Reserve (REN) or sensitive areas — the coastal strip, watercourses and their margins, flood- or erosion-risk zones and strategic areas for aquifer infiltration and recharge.
The 2025 amendments
Parliament adjusted the regime during 2025, reinforcing the contiguity requirement, replacing the concept of “moderate-value housing” with affordable letting and controlled-cost housing, and providing for administrative opinions (notably from the CCDR) in certain cases. The specific framework always depends on the applicable municipal plan.
What this means for those who own (or want to buy) land
The possibility of reclassifying is not automatic: it depends on location, contiguity, constraints and the municipal procedure. Before buying rural land “with an expectation of building”, it is essential to confirm the real framework — or you may pay for potential that does not exist.
Before buying rural land to build, confirm the potential
A reading of the municipal plan, the constraints and the Land Law regime gives you a realistic assessment of what can (and cannot) be built, before you commit capital.
Do you own rural land or are you considering buying to build? Paulo Silva Silva, Lawyer, focuses on Urban Planning and Spatial Planning, analysing viability and the reclassification and licensing path. Book a meeting or contact paulosilvasilva.adv@gmail.com · 916 055 901.
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The information in this article is general and institutional in nature; it does not constitute legal advice and does not create a client relationship. Decree-Law No. 117/2024 and its amendments should be confirmed in the version in force in the Diário da República (dre.pt) before any decision.