Lagoa City Council has approved the reclassification of 12 hectares of land for residential use, with at least 70% of the construction area earmarked for public housing, including affordable rentals and homes built under controlled-cost schemes.
By , in News · 26 Oct 2026, 11:26 · 0 Comments
The proposal to amend the Municipal Master Plan (PDM) was approved by the municipality on 20 October. It aims to reclassify rural land as urban land for residential purposes in the Calvário Development Unit, in the Union of Parishes of Estômbar and Parchal.
Promoting access to housing
According to the municipality, the decision “represents an important step in the municipal strategy to promote access to housing” and aims to create the conditions needed to increase the supply of affordable homes for local residents.
In a statement, the municipality revealed that the proposal covers approximately 12 hectares, with the potential for 743 homes to be built through private investment. Of these, 520 would be affordable homes, while the remaining 223 would be intended for the open market.
In other words, 70% of the total area, equivalent to approximately 71,374 square metres, is expected to be allocated to public housing, affordable rentals or housing under controlled-cost schemes. The municipality said this requirement “constitutes a central element of the procedure and reflects the priority given to creating housing solutions that can reach a greater number of families”.
Quoted in the press release, Lagoa Mayor Luís Encarnação said: “Access to housing is one of the greatest challenges facing society and requires concrete solutions capable of making a difference to people's lives.
“With this decision, we are creating the conditions to significantly increase the housing supply in Lagoa, with particular emphasis on controlled-cost housing and solutions that make housing more affordable for families.
“We want a municipality where young people can build their future, where families can find the conditions to settle down, and where living in Lagoa does not become a privilege reserved for those with greater financial means.
“This is an important step in that direction, which must be accompanied by compliance with the established conditions and the delivery of the proposed housing solutions.”
Adjacent infrastructure works
The development will take place in the Calvário Development Unit, which is currently classified as rural land, although it is already served by Municipal Road 125.
The proposal aims to “ensure development that is consistent with the surrounding urban area”, providing not only affordable housing but also public green spaces and improved pedestrian and cycling access.
The project also includes plans to develop the urban road network by widening the adjacent section of Municipal Road 125, taking into account the traffic requirements associated with the future development.
Pioneering project
Lagoa City Council also revealed that it is the first municipality in the Algarve to take this type of initiative, placing it “at the forefront of using this legal mechanism to make land available for housing”.
As a very talkative child, Bruno knew from an early age that communication was his path. When a teacher suggested he should become a journalist, everything clicked. In 2018, aged just 17, he moved to Coimbra to study Journalism and Communication. Bruno has been working at The Portugal News since 2022 and is currently the Editor, and is happy to be part of a media company based where he lived until moving permanently to Coimbra in 2023. His interests include national politics, Portuguese culture and society, and a broad range of current affairs. Outside of work, Bruno loves to travel and considers himself a theatre kid at heart. He is also passionate about music and, at gatherings, will happily take on the role of resident DJ, doing his best to play the greatest 90s R&B hits — with Mariah Carey being a particular favourite. Classic Portuguese literature is another guilty pleasure, with Eça de Queiroz holding a special place among his favourite authors.
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