Housing Policies, Land Reclassification and Construction Reality: Is Portugal on the right track?

Abstract

Portugal faces a deep housing crisis driven by structural causes such as public disinvestment, exclusive promotion of home ownership, and excessive market liberalization. In recent years, legal reforms such as rural land reclassification and urban planning simplification (Simplex Urbanístico) have been promoted as solutions to increase housing supply. However, a critical analysis shows that these measures lack articulation, cost control, and integrated strategy. Practical experience in property legalization and rehabilitation reveals that these solutions do not address real obstacles to housing construction — including escalating costs and speculative practices. By comparing international examples, the study concludes that success requires coordinated action across planning, public funding, market regulation, and local governance. This commentary advocates a systemic and cross-sector approach where housing is recognized as a social right, not a financial asset. Only then can a fair and sustainable response to the current crisis be achieved.