Refurbished Buildings
• Government want urban renewal
• 4,500 buildings in the city require renovation
• Old rental contracts fixed for 50 years
• Landlords could not increase the rents
• Buildings became run down
• Last year laws changed for old rental contracts
• It is now possible to increase rents provided that the landlord renovates the building


Renovation of City Buildings
• Most buildings are 100 years old
• Any tenant living in these buildings are a minimum of 70 years old
• Example:
• Old rent can be approx €25 for an apartment of 170m2
• Value of a new apartment 170m2 = €3,000m2 x 170 = €510,000
• The legal municipal value on rental is 4% of price - €20,400 per year or €1,700 per month
• From 4,500 buildings: 300 belong to council and 350 are currently awaiting planning approval to reconstruct in council.


What is happening in the market now?
• Buildings are coming onto the market for sale.
• Landlords are selling to investors and developers from Portugal, Spain, Italy and France are buying up.
• Investors are buying blocks and once planning permission is through putting it back on the market at a profit.
• Other investors go through with construction and sell apartments to the local market.
• Prices have risen approx 20% within the last year in this sector
• Locals are buying up these new built or renovated apartments
• Portuguese have one of the highest rates of owner occupiers in Europe
• Population of Lisbon is 4 million, only 500,000 live in the City now
• There is enough accommodation in Lisbon to house 2 million people
• New International Airport under construction in Lisbon.
• Due to fixed rents no money was being invested in maintenance of the buildings and the standards dropped so residents moved out of the City
• New modern apartments are in high demand in Lisbon City
• Trends are changing and Portuguese are moving back into the City from suburbs as renewal is taking place
• There is not enough supply to meet the demand
• At the moment the price of property in Lisbon is only 1/3 of the average price of property in all European capital cities
• The real estate market in Portugal has been increasing steadily for the last 50 year (currently 5-8% per year)
• This is the beginning of an excellent investment opportunity

This Commercial building is well located on a corner block in down town Lisbon. It is situated on the Rassio Sq in Baxia.
The building was headquarters for Diario da Noticias newspaper.
Some units are occupied with tenants.
There is a total of 11 units, 8 residential with 2 occupied and 3 commercial all of which are occupied.

Sales after works 5,842,000.00 €
Total cost inc works 4,314,960.00 €

Profit 1,527,040.00 €
35.39%

Return on Investment 179.00%
(40% Initial Investment)