Developer Carvoeiro Branco Announces 1,600 Affordable Homes for Algarve
The Dutch-led development group Carvoeiro Branco, a major player in the Algarve real estate market for nearly two decades, has announced a significant expansion of its portfolio focused on tackling the region's housing affordability crisis. The company, helmed by entrepreneur Erik de Vlieger, plans to develop between 1,500 and 1,600 new housing units over the next five years, with a strong emphasis on creating accessible options for the local population. This move positions Carvoeiro Branco as the largest developer in the Algarve and signals a strategic shift towards addressing the stark imbalance between soaring property prices and local wages.
The project announcement comes as the region grapples with a housing market where, as de Vlieger noted, a single room can cost half of a typical resident's monthly salary. The developer's plans include several key projects, such as the affordable housing developments in Vale da Pipa, Lagoa, and Vale Lagar, Portimão. These initiatives are being advanced through Carvoeiro Branco and its sister company, Antrix. The developer's stated goal is to build homes in the €180,000 to €280,000 price range, a segment he claims most developers avoid due to lower profit margins compared to luxury properties.
The scope of the developer's ambition is further highlighted by the acquisition of the iconic Fábrica do Inglês in Silves. The historic former cork factory is set to be transformed into the group's new headquarters and will also feature a 50-room hotel, injecting new life and economic activity into the landmark. This restoration project underscores a commitment not only to new construction but also to the preservation and adaptive reuse of culturally significant properties. The investment is a clear indicator of the company's long-term commitment to the region's economic and social fabric.
Financing for these large-scale projects is backed by a long history of real estate development, with Erik de Vlieger's family business originating in the Netherlands in 1950. The developer's strategy involves a combination of private investment and partnerships aimed at creating a sustainable model for affordable housing. While specific financing arrangements for each project were not detailed, the scale of the five-year plan suggests a robust investment pipeline. The group's expansion plans also look beyond the Algarve, with negotiations for land in Montijo and Setúbal, near Lisbon, already in progress for potential projects slated for 2027-2028.
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Despite the ambitious plans, the developer highlighted significant regulatory hurdles. De Vlieger lamented a four-year delay in obtaining a building permit for a 304-apartment project in Lagoa, which is already zoned for construction under the municipal plan (PDM). He challenged local councils to collaborate more effectively with developers willing to build affordable housing, arguing that the current system often fast-tracks lucrative luxury projects at the expense of housing for the local workforce. 'I simply can't understand how a developer like us, who bought land to produce affordable homes for people to live in, has to wait four years for a building permit,' he stated.
The project is expected to have a substantial local economic impact, not only by increasing the housing supply but also by creating jobs during the construction phases and through the operation of new commercial ventures like the hotel in Silves. De Vlieger emphasized his personal connection to Portugal, where he has lived for 30 years, as a driving force behind his mission. 'This country has welcomed me and provided security for me, my children, and my grandchildren,' he commented. 'It is very important to do something in return.' He concluded with a call to action for other developers in the region to prioritize the needs of the local community.
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