This building is situated in the historic part of the City, which will be next the planned luxury condominium complex.

The Architect Frederico Valssassina has applied for planning approval and the new project is in the town hall awaiting approval.

The new project consists of 17 apartments of which 3 are studio apartments, 10 one bedroom, 2 two bedrooms, 2 three bedrooms and 22 parking spaces (underground parking of 1,053 m²).

Construction area: 1,982 m²;
For sale empty.
Price per m²: 1,150 €.

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.

What is happening now in the market?
• 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

Price per m2
• 3 stages:
• Stage 1; Purchase of building = €800 to €1,100
• Stage 2;