Developer Carvoeiro Branco Announces 1,600-Unit Pipeline in Algarve with Affordable Housing Focus
The development group Carvoeiro Branco, led by Dutch entrepreneur Erik de Vlieger, has announced a significant expansion of its project pipeline in the Algarve, with plans to deliver between 1,500 and 1,600 residential units over the next five years. The announcement positions the group as the largest developer in the region and signals a strategic focus on addressing the local affordable housing shortage. Mr. de Vlieger confirmed that the company, in conjunction with its sister firm Antrix, has 25 projects underway, including key affordable housing developments in Vale da Pipa, Lagoa, and Vale Lagar, Portimão.
In a statement to The Portugal News, Mr. de Vlieger criticized the current state of the Algarve's real estate market, where he says investment is disconnected from the needs of the local population. “Nobody is investing in the Algarve, for the Algarve,” he stated, pointing to the proliferation of luxury developments with high price points, such as a project in Vilamoura where the cheapest apartments are listed at €750,000. He contrasted this with his firm's commitment to producing housing for the region's residents and workforce.
However, the developer highlighted significant administrative delays as a major obstacle. He cited a four-year wait for a building permit for a 304-unit affordable housing project in Lagoa, despite the project conforming to the existing Municipal Master Plan (PDM). He lamented that local authorities often seem to prioritize projects that generate higher municipal fees rather than those that address pressing social needs. “I have challenged the presidents of all councils to start a discussion with us: we will go to any municipality and produce affordable housing,” he affirmed.
In a concurrent move, Carvoeiro Branco has acquired the historic Fábrica do Inglês property in Silves. The former cork factory, which dates back to 1895, will be redeveloped to house the group's new headquarters and a 50-room hotel. This acquisition represents a significant investment in local heritage and is expected to contribute to the economic revitalization of Silves. “We are very proud to have acquired this unique cultural property,” Mr. de Vlieger announced after finalizing the deed.
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The group's strategic ambitions extend beyond the Algarve. Mr. de Vlieger revealed that Carvoeiro Branco is actively negotiating for land in Montijo and Setúbal, two municipalities in the Lisbon metropolitan area. The company is in discussions with local councils to secure building permits for projects scheduled for the 2027-2028 timeframe, indicating a long-term plan for national growth.
Mr. de Vlieger, who has lived in Portugal for nearly 30 years, framed his business strategy as a way of giving back to the community. He called on other developers in the Algarve to join him in the effort to build affordable housing for the people who form the backbone of the region's economy. The expansion of Carvoeiro Branco's operations and its focus on the affordable segment represent a notable shift in a market often characterized by luxury and tourism-focused real estate.
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