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Housing Prices Shot Up by 20% in Lisbon’s Campo de Ourique, Amoreiras and Estrela

4 August 2018

Idealista/news visited the districts of Estrela, Amoreiras and Campolide in Lisbon, easily verifying the enormous growth in the neighbourhoods, particularly in recent years and in the rehabilitation of buildings that are being converted into new housing. The growth is also being reflected in housing prices, which increased by 20%.

According to Constanza Maya, Head of Expansion & Support at the real estate agency Engel & Völkers, the increase in prices is due to “increased market demand, both domestically and internationally,” and to the “increase in tourism, which leads to the growth of services and consequently the recuperation and development of buildings.”

ERA recently opened a branch in Campo de Ourique/Amoreiras “with the goal of providing better service for the local area,” explained João Pedro Pereira, executive director at ERA Portugal. The decision was powered by their recognition of “the increased market dynamism, specifically in the parishes of Campo de Ourique and Estrela.”

ERA noted that these “areas, because of their location and quality of construction, have been increasingly sought after by foreign investors.” Moreover, their interest led to increases in the price per square meter (m2) in recent years. Regardless, João Pedro Pereira believes that “prices are in line with those in the other parishes of the county of Lisbon.”

“These areas, due to their location and quality of construction, have been increasingly sought after by foreign investors.”

João Pedro Pereira, ERA Portugal

Mr Pereira’s view is shared by Constanza Maya: “The market values ​​are based on the law of supply and demand… the centre of Lisbon has better infrastructure and, in turn, a supply of high-quality real estate.” She, therefore, believes that the greater demand inevitably leads to increases in the price per square meter.

ERA’s representative stated that their figures show a price increase per square meter “on the order of 20% compared to 2017”. Considering just the parishes of Campo de Ourique and Estrela, prices average around 3,500 euros per m2, “with average sales prices around 246,000 euros.”

According to data provided by Confidencial Imobiliário (Ci), property prices have an average value of 4,500 euros per m2 in Campo de Ourique, Amoreiras and Campolide. Estrela is the most expensive area, where houses go for an average of 5,600 euros per m2.

Secrecy is the heart of the business

Campo de Ourique, Amoreiras and Estrela are proof that the development of new buildings has returned to the fore along with flats sold off-plan, something unthinkable just a few years ago. Prices are so “selective” that, in some cases, there are not officially disclosed and only the buyers know how much they pay for them.

Amoreiras Vista, next to Jardim das Amoreiras, is a newly-erected building that, at present, has only one unit available (price on request), and the flat is expected to be ready in 2019. The same is true of a project under development by ODEON Properties called Arrábida Residences. Construction is only expected to be concluded towards the end of 2018, but there is only one unit still available for sale and prices are held private by the developer.

There are, however, other buildings for sale where sales prices are publicly available which reveal how well off these Lisbon areas are.

One such example is the Campo d’Ourique Prestige, with apartments ranging from studios to five bedrooms and with areas between 39 m2 and 235 m2. The development has a rooftop pool, parking and storage and 165.70-m2 commercial space on the ground floor. Prices reach 780,000 euros, and the last units for sale are eight triplex studios.

On the same road, Campo de Ourique 217, a building with three en-suite apartments, generous terraces, parking for residents and visitors and bicycle parking, will be completed in the summer of 2019. The price? A 168-m2 three-bedroom flat is listed for 950,000 euros and a 192-m2 four-bedroom for 1,150,000 euros.

New projects on the horizon

On Rua Saraiva de Carvalho, in Campo de Ourique, it seems like developers are rehabilitating almost every other building.

The building at 95-97 was originally a 19th-century manor, known as the Quinta da Saudade, is one. Under development by the company Caravelles, the renovation will create four luxurious apartments with modern facilities and a view over the Basilica da Estrela and a vast tree-lined street. The developer has not yet disclosed any prices.

  • The 0/A duplex flat consists of two suites, is located on the garden floor and floor 0 and has two parking spaces
  • The 0/B duplex flat has four bedrooms, is situated on the ground floor and floor 0, has exclusive use of the garden and two parking spaces
  • The 1/A duplex apartment consists of three suites, is located on the 1st and 2nd floor, has a balcony and two parking spaces
  • The 1/B duplex apartment has two suites, is situated on the 1st and 2nd floors, has a terrace and balcony and two parking spaces.

At the address 59-69 there is a set of flats with 1,100 m2 under rehabilitation, and at 170 there is another building with 299.80 m2 that will be refurbished, in addition to some other walled-in buildings with potential for future redevelopment.

Mr Pereira believes that “these areas have always been highly sought after, because of their location in the heart of the city, with a readily available network of transportation, commerce and schools,” he believes that “they will remain dynamic in the coming years.”

Constanza Maya has the same “feeling”: “The historic zones of Lisbon, namely Estrela, Campo de Ourique and Campolide, will certainly continue to be very dynamic, with increased demand. They are historic districts that provide residents with excellent family living, offering better services and access. Tourism will continue to bring new life to these areas, and more and more foreigners want to settle in Lisbon,” she concluded.

Original Story: Idealista – Carla Celestino

Translation: Richard Turner