Lagoa approves land reclassification for 520 affordable homes

Municipal Council advances PDM amendment to create public and controlled-cost housing in a 12-hectare area.

Generic image of an urban development area in Portugal, showing new constructions and green spaces.
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Generic image of an urban development area in Portugal, showing new constructions and green spaces.

The Lagoa Municipal Council has approved the reclassification of approximately 12 hectares of rural land to urban, aiming to increase the supply of affordable and controlled-cost housing in the municipality.

The decision, made at the meeting on October 20, seeks to address the difficulties families face in accessing housing. The simplified amendment proposal for the Municipal Master Plan (PDM) targets the Calvário Execution Unit, in Estômbar and Parchal.
The area covered allows for the construction of up to 743 housing units, with 520 designated for public housing, affordable rental, or controlled-cost housing. The remaining 223 units will be for the open market. At least 70% of the above-ground construction area, approximately 71,374 square meters, is to be allocated to these more accessible housing solutions.
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"Access to housing is one of the biggest challenges we face as a society and requires concrete responses capable of producing effects in people's lives. With this decision, we are creating conditions to significantly increase the housing supply in Lagoa, giving particular importance to controlled-cost housing and affordable housing solutions for families. We want a municipality where young people can build their life projects, where families find conditions to settle, and where living in Lagoa does not become a privilege reserved for those with greater financial capacity. This is a relevant step in that direction, which should be accompanied by compliance with the foreseen conditions and the realization of the proposed housing solutions."

Luís António Alves Encarnação · Mayor of Lagoa
The intervention includes the creation of green spaces, public areas, pedestrian and cycling access, and necessary infrastructure. It also incorporates a structuring road to enhance the urban road network and the widening of Estrada Municipal n.º 125.
This procedure, under Article 72.º-B of the Legal Regime for Territorial Management Instruments, is the first initiative of its kind in the Algarve region, positioning Lagoa at the forefront of using this legal mechanism to promote the availability of land for housing.
The proposal aligns with Lagoa's Local Housing Strategy and aims to strengthen housing supply, promote social cohesion, and urban development, contributing to a more balanced and inclusive municipality.
Based on information from the official source: Câmara Municipal de Lagoa (Algarve) (22/10/2026)