Government ratifies partial suspension of Funchal's Master Plan to boost housing
The Regional Government has ratified the partial suspension of Funchal's Municipal Master Plan, aiming to enable the construction of affordable housing and boost investment.
Through Resolution No. 658/2026, the Regional Government ratified the partial suspension of Funchal's Municipal Master Plan (PDM), an exceptional measure approved by the Municipal Assembly to respond to the housing crisis and real estate pressure.
The suspension, valid for two years (extendable by one more), covers specific areas (A, B1, B2, B3, and B4) and aims to:
- Enable the construction of public and cooperative housing;
- Flexibilize building and parking standards that were blocking investment;
- Mitigate the shortage of affordable housing.
Preventive measures include new building parameters, such as utilization indices and maximum floor heights, adapted to each delimited zone. The measure will expire upon the entry into force of the 2nd revision of the Funchal PDM.
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