Porto City Council Approves Second 'Built to Rent' Project for 195 Homes
The Porto City Council has approved a new contract for the construction of 195 homes under its 'Built to Rent' initiative, part of the 'Porto com Sentido' program. This marks the second such partnership with a private entity, following a project for 124 homes that was approved in July. The new development will be undertaken in partnership with the real estate company Lusares – Sociedade Imobiliária and is aimed at providing affordable rental housing for middle-income families.
The project will be located in the parish of Campanhã, between Alameda de Cartes and Rua da Arada. It will consist of two towers, one with 15 floors and the other with 9. The development will include 66 studio apartments (T0), 29 one-bedroom apartments (T1), and 100 two-bedroom apartments (T2). According to the presentation by the Councilor for Urbanism and Housing, Pedro Baganha, the monthly rents will range from €525 to €830. Tenants will also be eligible to apply for rent subsidies.
The agreement with Lusares is structured as a lease promise, wherein the municipality will lease the apartments from the developer for a ten-year period. This contract is renewable for another ten years by mutual agreement. The construction is estimated to take three years, with a projected completion date of May 2029. The municipality anticipates spending approximately €16 million on the lease agreement between 2029 and 2039.
During the council meeting, Pedro Baganha described the subleasing model as a success and a "very valid path for increasing affordable housing in the city." However, the project was met with criticism from some council members. Councilors Joana Rodrigues of the CDU and Sério Aires of the Left Bloc (BE) argued that the rental prices remain unaffordable for a large portion of the population with housing needs.
Sério Aires also raised concerns about the height of the proposed towers, making a pointed reference to a recent controversy over tall buildings on Avenida Nun’Álvares. "I hope there is already a petition against the height of those towers, as happened in other places," he stated. Despite the objections, the project was approved and represents a continued effort by the Porto municipality to increase the supply of rental housing through public-private partnerships.
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