Rui Ribeiro Lima and Miguel Arnaud comment on the new land reclassification regime for logistics projects

In a contribution to Supply Chain Magazine, Rui Ribeiro Lima and Miguel Arnaud state that the changes introduced by the Simplex Urbanístico represent a structural shift in territorial planning, with direct implications for the development of logistics and industrial projects in Portugal. The possibility of reclassifying rural land as urban within a period of just two months — when the same process previously could take five to six years — creates entirely new conditions for the establishment of production units and logistics centres, offering greater predictability and agility to developers and investors.

Both lawyers highlight that this measure, although less publicly debated than licensing procedures, is crucial in addressing the shortage of available urban land and the difficulty in identifying locations suitable for industrial activity. The reclassification mechanism makes it possible to unlock areas that had previously remained outside the investment radar, particularly in peripheral regions where rural land has been underutilised.

Despite this legislative progress, Rui Ribeiro Lima and Miguel Arnaud warn of ongoing obstacles that continue to undermine the country’s competitiveness. Environmental impact assessments, for instance, may take up to a year, followed by urban and industrial licensing procedures, which are often lengthy and complex. This reality places Portugal at a disadvantage compared to other European countries, such as Spain, where procedures are considerably faster.

The lawyers also note that the country is experiencing a reversal of the planning paradigm seen in 2014, when the priority was to contain urban sprawl. Today, it is essential to ensure the availability of sufficient urban land to meet the growing demand for both housing and industry. In this context, the simplified reclassification process emerges as a fundamental tool of economic policy and spatial planning.

Despite the constraints, the lawyers believe that the legal framework is finally beginning to align with the pace of the market, driven by more ambitious developers, foreign investment and increasingly demanding logistics operators. It is this new dynamic, they argue, that is reshaping the rules of the game and positioning Portugal as a more attractive destination for large-scale logistics and industrial projects.

Read the full article here.