Developer Mello RDC to Invest €150M in Lisbon and Alentejo, Citing Licensing as a "Martyrdom"

Top Developer Decries Portugal's "Martyrdom" of Licensing Amid €150M Investment Push in Lisbon

In a candid interview, António Ribeiro da Cunha, CEO of developer Mello RDC, described Portugal's project licensing system as a "martyrdom," even as he announced a €120-€150 million investment plan for ten new projects in Lisbon and the Alentejo coast. His comments offer a critical insight for foreign investors into the primary operational risks and costs of developing in Portugal.

According to Ribeiro da Cunha, the biggest obstacles are not market demand, which remains strong, but structural issues. He states it's nearly impossible to build in Greater Lisbon for under €3,500-€4,000/m², with a huge portion of that cost being taxes and delays. "The time it takes to get a license is the main obstacle," he said. A financial advisor for foreign investors commented, "This is crucial intelligence. It explains why new housing supply is so constrained and why prices for existing properties remain high. For investors, it underscores the value of turnkey, newly built, or renovated properties that bypass this development risk entirely."

• Prioritize New or Renovated Properties: To avoid the severe delays and budget uncertainties of new construction, focus on purchasing newly completed or fully renovated homes where the developer has already absorbed the licensing risk.
• Understand the 'Custo de Contexto': When evaluating opportunities, recognize that the high prices of new builds reflect not just materials and labor, but significant 'context costs'—the price of bureaucracy and taxes like the 7% IMT on land purchases.
• Invest with Experienced Developers: For those interested in off-plan projects, partnering with a seasoned developer like Mello RDC, who has a proven track record of navigating the system, is essential. Their project pipeline in prime Lisbon areas like Lapa, Belém, and Campo de Ourique signals where smart money is flowing.
• Look at the Alentejo Coast: Mello RDC's €25 million hotel project in Melides confirms the high investment appeal of the Comporta region, which continues to attract luxury and tourism developments.

While Portugal's bureaucracy presents challenges, the strong market demand means that successfully completed projects are highly profitable. Explore opportunities with realestate-lisbon.com.