€300M Lisbon Project Signals Major Opportunity Amid Calls for Market 'Shock Therapy'
A €300 million residential project named 'Clarissas' is set to bring 700 new middle-class homes to Sacavém, just outside Lisbon, spearheaded by Belgian developer Thomas & Piron (T&P). This major foreign investment highlights the development potential in the Lisbon suburbs, even as T&P's Portugal Country Manager, David Carreira, calls for a "shock therapy" to fix the country's housing market challenges.
What Foreign Investors Need to KnowThe Clarissas project is a significant indicator of where the market is heading. "We are investing heavily because we see the demand, but the system needs a reset," Carreira stated in a recent interview. He criticized the 'Simplex' licensing simplification law as being flawed and suggested that a VAT reduction on construction from 23% to 6% would help stabilize, but not drastically lower, final property prices. For an investor, this means that while new-build opportunities are emerging, the underlying costs and regulatory hurdles remain significant factors.
Actionable Steps for Today's Buyer- Look to the Suburbs: Major investments like Clarissas are shifting the focus to well-connected suburbs like Sacavém. Investors should explore these peripheral areas for new development opportunities.
- Factor in Regulatory Risk: Carreira's comments on 'Simplex' and VAT highlight the ongoing regulatory uncertainty. Investors must factor potential delays and policy shifts into their financial models.
- Focus on Middle-Market: T&P's strategy is a clear bet on the middle-class segment. This is a potentially underserved and stable market for long-term buy-to-let investors.
- Partner with Experienced Developers: With a complex market, aligning with established international developers like T&P, who have a long-term vision for Portugal, can provide a degree of security and market insight.
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