Construction Sites Bloom on Streets Parallel to M. de Pombal and Av. da Liberdade

2 August 2018

The supply of high-quality residences, market players told idealista/news, is becoming scarcer in Lisbon’s most desired streets. This has inevitably led to a “revival” of the focus on parallel streets. The appearance of large quantities of scaffolding and sidings beyond the Marquês de Pombal Rotunda and Avenida da Liberdade are the best example of this new trend. As a result, these areas are becoming increasingly expensive as prices rise. What follows is a summary of some of the real estate developments in those areas.

Walking through the streets of Avenida Duque de Loulé, Rua Barata Salgueiro, Rua Castilho, Rua Artilharia 1, Luciano Cordeiro and Rua de Santa Marta, to mention just a few, is to discover a series of enormous construction sites, with machines coming and going, workers carrying helmets and signs announcing future developments.

The general-director of Lince Real Estate, Vasco Pereira Coutinho, noted that “the price per square meter has risen throughout the country in recent years, especially in the centre of the city of Lisbon” and “in the last five years, in certain central areas of Lisbon, prices have risen by 70% or more.” The streets and avenues parallel to the Marquis of Pombal and Avenida da Liberdade are not an exception to this “new rule.”

In order to get a sense of this new reality, it is enough to say that, in the first quarter of 2018, in the Bairro Castilho – Rodrigues da Fonseca area, the average price for lower-end properties stood at approximately 1,916 euros per square meter (m2), lower-middle at 3,679 euros per m2, middle at 4,894 euros per m2, upper-middle at 6,221 euros per m2 and in upper-end, 7,117 euros per m2. In the neighbourhood of Santa Marta, those same categories saw prices of 1,408 euros per m2, 2,513 euros per m2, 4,591 euros per m2, 5,696 euros per m2 and 8,461 euros per m2, respectively, according to data from Confidencial Imobiliário.

Luxury Residences

Avenida Duque de Loulé was one of the first parallel arteries to awaken to the real estate boom, and several projects are underway in this part of the capital.

Habitatinvest expects to complete its new development, Duque 70, in 2019. With 52 flats, a common indoor garden, swimming pool and large common areas, the apartments range from 70m2 to 165m2 in area.  Studios start at 390,000 euros, while three-bedroom duplexes start at 1,100,000 euros.

Coporgest launched another venture in the same area: Sottomayor Residences. The building has three shops and 97 apartments, and the overwhelming majority have sold already. But it is still possible to find two-bedroom flats between 1,085,000 euros and 1,100,000 euros and four-bedroom residences 1,320,000 euros and 1,805,000 euros.

Coporgest has another development located on Luciano Cordeiro/Largo das Palmeiras/Rua de Andaluz: the Sottomayor Premium Apartments. This condominium has 43 one- to three-bedroom flats, a shop and underground parking.

ACCURE is renovating a building located at 92 Luciano Cordeiro, consisting of 12 one- to two-bedroom apartments, with areas between 108 and 165 m2.

Also worthy of mention is Rua Barata Salgueiro, which is a part of Lisbon’s high-end residential market and one of the most expensive areas in the city, with sales prices above the municipal average and values above 10,000 euros/m2. There are two major residential development underway on this street: one from the developer Barlow Retail Investment, which has a project designed by the architectural studio Atlântico – André Caiado; and the venture Freedom Terraces by the developer Lantia, under construction by Casais.

Coveted Properties

The developer AVENUE is building Mulberry Hill, a project located on Rua Artilharia 1. Out of a total of 31 flats, which range from studios to three-bedroom duplexes, there are still studios available at 280,000 euros, one-bedroom flats for 300,000 euros to 450.00 euros and three-bedroom flats for 890,000 euros to 975,000 euros.

The developer Louvre Properties is building The Nest on 11 Rodrigo da Fonseca, which it expects to be complete in 2019. The former office building is being converted into 13 apartments, including two penthouses. The flats range from one- to three-bedroom duplexes, with areas between 95 and 425 m2. Although the project is already in the pre-sale phase, the developer has yet to disclose any asking prices.

The same developer also has another venture at 41 Rua Alexandre Herculano. The building has six floors, with one and two-bedroom flats with areas between 59 m2 and 131 m2. With prices that ranged between 290,000 euros and 690,000 euros, all of the flats have already sold. Louvre will also launch two new projects located at 11 Rua Rodrigo da Fonseca and 12 Rua Rosa Araújo.

Quantico is developing 32 Santa Marta, located on the street with the same name. The building has 24 one- to four-bedroom flats costing 240,000 euros (studios), 505,000 euros (two bedrooms), 790,000 euros – (three bedrooms), 950,000 euros – (three-bedroom duplexes) or 1,250,000 euros (four-bedroom duplexes).

Further down, at 27-31 Rua do Salitre, Level Constellation is developing Off Liberdade, with 14 flats, including studios and one-bedroom apartments, and a shop. The only flat still available is a one-bedroom duplex going for 568,000 euros.

Despite their elevated prices, these properties are in high-demand. Furthermore, not only do they have willing buyers, they are usually bought while still in the construction phase and often are included in buyers short-lists before any prices are revealed.

New stars coming up

It should be noted, however, that the new developments in these areas are not just residential in nature. Investors are also developing hotels.

The Exe Duque de Loulé on Duque de Loulé is scheduled to open in 2018, according to the Lisbon Tourism Observatory. Belonging to the Hotusa Group, the 140-room hotel will have three stars. The Cerquia group is also building a 163-room hotel on the same avenue.

Two new hotels are also under construction on the Praça Alegria: the Blue Palace, a 40-room 5-star unit; and the Real Maxime Hotel, a 70-room 4-star hotel.

These hotels come at a time when, according to the same source, average prices reached new highs in May, with 3-star hotels costing 97.39 euros/night, 4-stars at 110.45 euros and 5-stars at 199.3 euros. Compared to the same month in 2017, the hotel registered increases of 24.2% (18.95 euros) for 3-star hotels, 14% (13.53 euros) for 4-stars and 9.1% (16.62 euros) for 5-star hotels.

Projects to continue

All these projects serve to demonstrate the dynamism of the real estate market in the roads adjacent to Marquês de Pombal and Avenida da Liberdade, a dynamism that is apparently here to stay.

As Mr Coutinho summed up: “These roads are highly central in Lisbon, and there are still many available investment opportunities. Lisbon is a city that still has many opportunities for rehabilitation, and these projects will continue for the next few years. Lisbon is attracting investors and citizens from all over the world!”

Original Story: Idealista – Carla Celestino

Translation: Richard Turner