Urban licensing reform postponed to 1 October — and the single application forms are already out
Decree-Law no. 155-B/2026 of 31 July postponed to 01/10/2026 the entry into force of the RJUE reform approved by Decree-Law no. 108/2026 of 29 May, which was due to apply from 3 August — the Government cited the need to first adapt municipal IT platforms. The same Official Gazette carried Ministerial Order no. 320/2026/1, approving the single application forms (licence, prior notification, prior information request, start of works, use permit) and revoking Ministerial Orders nos. 71-A/2024 and 71-B/2024. A key point for transactions: the single form, together with proof of payment of the fees, will constitute “sufficient title” to evidence the lawfulness of the urban operation, including for real estate transactions — an express answer to the legal uncertainty created by tacit approvals. Anyone with projects in the pipeline should recalibrate their timeline for the new regime. Ref.: Decree-Law no. 155-B/2026 and Ministerial Order no. 320/2026/1, Official Gazette no. 147/2026, 1st series, 31/07/2026.
Controlled-cost housing: contracts with municipalities count as affordable rental — with retroactive effect to 2021
Ministerial Order no. 320-A/2026/1 of 31 July, the fourth amendment to Ministerial Order no. 65/2019, clarifies that dwellings qualify as intended for affordable rental, for controlled-cost housing purposes, where they are the subject of a sale, a lease for subletting, or the corresponding promissory contracts, entered into with municipalities or other public entities that undertake to rent them out under Decree-Law no. 68/2019. The developer’s notification to the IHRU may be supported either by a solemn declaration or by the contract itself. The amendments are expressly interpretative in nature and take effect from the entry into force of Ministerial Order no. 281/2021 of 3 December. Developers with controlled-cost projects should revisit rejected or doubtful classifications in light of the new wording. Ref.: Ministerial Order no. 320-A/2026/1, Official Gazette no. 147/2026, 1st series, supplement, 31/07/2026.
House prices: new record of €3,210/m2 in July, but growth slows to 8%
The idealista index put the median asking price in Portugal at €3,210/m2 at the end of July — an all-time high for the ninth consecutive month — with year-on-year growth slowing to 8% (from 8.9% in June) and quarterly growth at just 0.4%. Prices rose in all 20 district capitals and autonomous-region cities analysed, with the sharpest increases in Viseu (+20.2%), Portalegre (+19.9%) and Guarda (+18.7%) and the mildest in Lisbon (+4.1%). Lisbon remains the most expensive city (€6,260/m2), followed by Porto (€4,276/m2) and Funchal (€4,036/m2). Growth is visibly shifting to the interior and mid-sized cities — a useful signal for anyone considering buying, selling or investing outside the main hubs. Ref.: idealista/news, asking-price index — July 2026, released 03/08/2026.
Building costs up 7.2%: labour rises 8% and no material got cheaper
The New Housing Construction Cost Index recorded a year-on-year rise of 7.2% in June, accelerating 0.3 points from May: materials rose 6.5% and labour 8.0%. Statistics Portugal (INE) highlights bitumens (+35%) and bare and coated copper wire and PVC pipes (around +25%), noting that no year-on-year decrease was recorded in any of the materials observed. Labour contributed 3.7 points to the index’s variation and materials 3.5. This pressure will keep feeding through to construction budgets and final prices — and argues for well-drafted price-revision clauses in construction contracts. Ref.: INE, ICCHN — June 2026, release published 10/08/2026.
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