New Developer Alecrim RE Enters Market with €330 Million Pipeline Focused on Mid-High Segment
A new real estate development company, Alecrim Real Estate (Alecrim RE), has been established under the Lince Capital umbrella, announcing a global investment plan of €330 million. The firm will focus on the residential sector, with eight projects in its pipeline located in Lisbon, Cascais, Setúbal, and Comporta. The developments are projected to deliver approximately 500 new homes over the next five to seven years.
António Velho de Palma, the CEO of Alecrim RE, stated in an interview with idealista/news that the company is strategically positioning itself in the medium-high market segment. “From a strategic point of view, we position ourselves in the medium-high segment, where the commercial risk is lower, given the greater purchasing power and a lesser dependence on bank financing,” he explained. Despite this focus, Velho de Palma emphasized that the primary target is the domestic market, stating, “Our ambition is to develop residential projects for the Portuguese, regardless of the segment.” He noted that demand from national buyers remains exceptionally high, particularly in prime locations.
The company's first project, named Metrass, is located in Lisbon's Campo de Ourique district. According to Velho de Palma, the project has been met with strong market reception since its launch in July. “Cerca de 80% do projeto encontra-se já reservado, com alguns CPCV assinados e os restantes em fase de negociação,” he revealed, adding that Portuguese buyers accounted for approximately 90% of these reservations. The project, designed by the Fragmentos architecture studio, features functional homes with garages and outdoor spaces.
The formation of Alecrim RE was driven by several factors, including the need for Lince Capital to internally manage its growing portfolio of real estate projects and to capitalize on decades of industry experience. The new entity also serves as a co-investment platform for private investors seeking direct exposure to real estate with shorter investment horizons of three to four years, as part of the Navigator II investment fund. The company aims to contribute to alleviating Portugal's housing shortage by increasing the supply of new homes.
Velho de Palma, whose background includes nearly seven years at JLL and the founding of the Future Real Estate Leaders (FREL) network, articulated a vision for the company centered on a genuinely Portuguese identity, or “portugalidade.” “We chose to create a Portuguese developer, with a genuinely national brand and identity, that values portugalidade,” he said. This is reflected in the company’s focus on quality finishes, durable construction, and designs that accommodate the Portuguese lifestyle, such as ample living areas and well-conceived kitchens. For foreign buyers interested in these authentic properties, connecting with agents specializing in international clients can be beneficial.
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The project pipeline includes a diverse range of typologies, from apartments aimed at young families and rental investors to larger homes for established families. The portfolio will also feature lofts in converted industrial zones and luxury homes in transformed country estates. Furthermore, Alecrim RE is planning to utilize modular construction in two of its upcoming projects to reduce timelines and enhance sustainability, a growing trend in the industry. For more on this, our market insights page offers further analysis.
When asked about the investment climate, Velho de Palma affirmed that Portugal continues to be on the radar of institutional investors, citing the country's consolidated market and the structural imbalance between supply and demand as strong fundamentals. “Even in a context of high interest rates, which make financing more expensive, and inflation, which increases construction costs, this mismatch between supply and demand ensures that the market continues to generate opportunities,” he commented. However, he identified legislative instability as the greatest risk to investment in the country.
Regarding the national housing crisis, Velho de Palma advocated for a series of articulated solutions between the state and private sector. He called for increased tax incentives for construction, such as a reduction of the VAT to 6%, and the streamlining of licensing processes. He also highlighted the importance of an expanded public transport network to open up peripheral areas and alleviate price pressure in central urban zones. These are topics often covered in our regulatory and legal frameworks blog.
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