Against a backdrop of mounting protests over Portugal’s housing crisis, Lagoa Council has approved a planning change which could pave the way for 520 affordable homes in the municipality, as part of a development with capacity for up to 743 properties.
The proposal, approved at the council’s October 20 meeting, involves reclassifying around 12 hectares of rural land as urban land within the ‘Calvário Execution Unit’, in the parish of Estômbar and Parchal.
If the development goes ahead as planned, the homes would be built through private investment, with 520 earmarked for affordable housing and the remaining 223 available on the open market.
Crucially, at least 70% of the total above-ground construction area – around 71,374sqm – must be allocated to public housing, affordable rental housing or controlled-cost housing.
The council describes the measure as part of its attempt to increase the supply of homes within reach of families struggling with the cost of buying or renting in Lagoa.
“Access to housing is one of the greatest challenges we face as a society and requires concrete responses capable of having an impact on people’s lives,” said Lagoa Mayor Luís Encarnação.
“With this decision, we are creating the conditions to significantly increase the housing supply in Lagoa, placing particular importance on controlled-cost housing and solutions that allow families to access housing at affordable prices.”
He added that the aim was for young people to be able to build their lives in the municipality and for families to remain there, rather than allowing living in Lagoa to “become a privilege reserved for those with greater financial means”.
The land at Calvário is currently classified as rural but lies alongside an established urban area.
The proposed development would not be limited to housing. Plans also provide for green and public spaces, pedestrian and cycling links and supporting infrastructure, while a new structural road is envisaged as part of the future urban network.
The adjoining stretch of Municipal Road 125 would also be widened to accommodate the additional traffic expected from the development.
The council is using a simplified procedure under Article 72-B of Portugal’s Legal Framework for Territorial Management Instruments (RJIGT) to amend its Municipal Master Plan (PDM), it says.
The mechanism allows municipalities to reclassify land for housing through a simplified PDM amendment, provided a series of conditions are met. These include setting aside at least 70% of the above-ground construction area for public, affordable rental or controlled-cost housing, ensuring the area connects coherently with existing urban land and providing the necessary infrastructure.
Council claims Algarve first
According to the local council, this is the first initiative of its kind in the Algarve using this particular legal mechanism to make land available for housing.
The project forms part of Lagoa’s Local Housing Strategy, although the council stresses that approval of the land reclassification is only one stage in the process.
Any future development will still have to comply with the applicable planning, infrastructure and construction procedures and with the conditions attached to the reclassification.