Porto Municipality Announces Second 'Built to Rent' Development in Campanhã
The developer and construction company Lusares – Sociedade Imobiliária, in partnership with the Porto City Council, has announced a new residential construction project in the Campanhã area of the city. This development is the second major initiative under the municipality's 'Built to Rent' scheme, which is part of the broader 'Porto com Sentido' program aimed at increasing the supply of affordable housing for middle-income families.
The project specifications detail the construction of two residential towers of 15 and 9 floors, located between Alameda de Cartes and Rua da Arada. The development will comprise a total of 195 housing units, broken down into 66 studio apartments (T0), 29 one-bedroom apartments (T1), and 100 two-bedroom apartments (T2). The scope of the project is to deliver modern, quality housing to the rental market at controlled prices.
The construction timeline for the project is estimated at three years, with a projected completion date of May 2029. The development will then enter a ten-year operational phase, during which the properties will be available for rent. The architectural design emphasizes functionality and modern aesthetics, with the two towers set to make a significant addition to the Campanhã skyline.
Financing for the project is structured as a public-private partnership. The developer, Lusares, will finance and manage the construction. Upon completion, the Porto municipality has entered into a master lease agreement, promising to rent all 195 units for a period of ten years. This agreement guarantees the developer a steady income stream, with the city estimating its total lease expenditure at approximately €16 million over the decade. This financial arrangement significantly de-risks the project for the private partner.
The project has received all necessary regulatory approvals and planning permissions from the municipal authorities. The announcement was made by Porto's Councilor for Urbanism and Housing, Pedro Baganha, who celebrated the partnership as a key step forward in the city's housing strategy. The development is expected to have a positive local economic impact, creating jobs during the construction phase.
The rental prices will be set at rates considered 'affordable,' ranging from €525 per month for a studio to €830 for a two-bedroom apartment. Tenants will also be able to apply for municipal rent subsidies, ensuring the homes are accessible to the target demographic of families with intermediate incomes. There has been considerable market interest in the first 'Built to Rent' project, and similar pre-sales activity and market interest are anticipated for this larger development.
The project will adhere to high-quality construction methodologies and standards. While not explicitly detailed in the announcement, new constructions of this scale in Portugal are typically required to meet modern environmental and sustainability features. The development will also necessitate connections to local infrastructure and utilities, which will be coordinated with municipal service providers. This project represents a significant addition to Porto's housing stock and a model for future public-private collaborations.
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