Government Passes Law to Unblock Nearly Half a Million Frozen Inherited Homes

The Portuguese Government approved a legislative decree today designed to unlock hundreds of thousands of vacant properties trapped in undivided estates (heranças indivisas). The reform removes the unanimous consent requirement among heirs, preventing a single holdout family member from freezing residential assets indefinitely.

Under previous civil code provisions, any single heir could block the renovation, leasing, or sale of inherited real estate, leaving an estimated 500,000 homes decaying across Portugal.

The new mechanism allows majority stakeholding heirs to proceed with transactions through streamlined administrative arbitration, while minority shares are safeguarded via certified independent appraisals.

Urban planners and real estate associations welcomed the reform, noting that thousands of vacant apartments in central Lisbon and Porto could rapidly re-enter the active housing stock.

The government expects the measure to revitalize historic neighborhoods without waiting years for greenfield construction permits.