Mello RDC Announces €10 Million 'Freedom' Residential Project in Lisbon's Arroios
The family office Mello RDC, led by CEO António Ribeiro da Cunha, has officially announced the launch of 'Freedom,' a new residential development in the Arroios district of Lisbon. The project represents a €10 million investment focused on the conversion of a former 1940s garage into a modern residential building.
The investment thesis centers on the high demand for well-located, modern housing in Lisbon's city center. Arroios is a multicultural and rapidly gentrifying neighborhood, making it a strategic location for a project that combines historical character with contemporary design. The developer aims to capitalize on the area's appeal to young professionals and families with an urban lifestyle.
The 'Freedom' project will offer 23 apartments, with a mix of typologies including studios (T0), one-bedroom (T1), and two-bedroom (T2) units. The apartments will range in size from 56.6 to 158.7 square meters. This variety is intended to attract a diverse pool of buyers, from single occupants to small families, maximizing the investment's market reach.
The projected returns for investors are underpinned by strong market fundamentals in Lisbon. The development is being launched with prices starting at €375,000. The investment timeline sees the project's completion scheduled for 2027, allowing investors to potentially benefit from capital appreciation in the Lisbon market over the construction period.
Key risk factors for a project of this nature include potential construction delays and shifts in market demand. However, Mello RDC is mitigating these risks by partnering with reputable sales agencies JLL and Dills and by focusing on a high-demand location. The project's unique 'industrial-chic' design and modern amenities are also expected to make it resilient to market fluctuations.
Current market conditions in Lisbon remain favorable for residential development. Despite rising interest rates, demand for quality housing in central locations continues to outstrip supply. The 'Freedom' project, with its unique character and amenities like private parking with EV chargers, a pet station, and communal gardens, is well-positioned to capture this demand.
Comparable investments in renovated properties in Arroios and neighboring areas have shown strong performance in recent years. The combination of architectural preservation and modern upgrades has proven to be a successful formula, commanding premium prices and attracting both domestic and international buyers. 'Freedom' is benchmarked against these successful projects.
Professional due diligence for the project has been conducted by Mello RDC, and the co-exclusive sales agreement with JLL and Dills ensures a robust marketing and sales process. These agencies bring extensive market knowledge and a global client network, enhancing the project's visibility and sales prospects.
Financing options for prospective buyers will be available through major Portuguese and international banks. The project's clear legal structure and the developer's track record are expected to facilitate a smooth financing process for qualified buyers. Investors may also explore various mortgage products tailored to new construction.
Exit strategies for investors are flexible. The properties can be sold upon completion to capture capital gains, or they can be placed on the long-term or medium-term rental market, where demand in Arroios is consistently high. The project's features and location make it highly attractive to quality tenants.
The regulatory and tax implications for foreign investors are in line with Portuguese law. Buyers will be subject to IMT (Property Transfer Tax) and Stamp Duty upon purchase. Investors should seek professional tax advice to understand the full implications, including potential liabilities for capital gains or rental income. The project's sales teams can provide referrals to qualified legal and tax advisors.
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