The Lisbon City Council is going to promote an alternative type of real estate investment

The opening of the competition promoted by the Lisbon City Council, within the framework of an affordable rent program is shortly going to be a reality.

In fact, this competition aims to guarantee the placement on the Lisbon market of 1600 new apartments, of which 1200 will have a reduced rent, between € 150 and € 600 depending on the typology in question. However, these rents are subject to possible annual adjustments.

Therefore, the remaining 400 apartments available can have as a rent the price chosen by the winners of this contest, without any limitations.

These apartments will be located in Lisbon, in areas near Graça, Benfica, Marvila, Belém, Lumiar and also in Parque das Nações, all of them well served by public transports, local commerce, public facilities and green areas.

The great novelty of this competition, in relation to other identical ones promoted by this entity, is related to the criterion underlying the assessment of who will be the winner of this contest. Thus, the winning projects will be those that guarantee:

  1. The lowest rent value to be charged to the lessee;
  2. Duration of the construction.

Thus, this initiative seeks to achieve a balance of interests.

On the one hand, it is possible to create rents at an affordable price, which, at the moment, do not exist and are crucial, since the real estate market is very inflated.

On the other hand, the interested investors will benefit as landlords of these rents, without needing to be the owners of the real estate, and these will be granted by the said City Council, during a temporal period of 30 to 70 years.

Thus, by investing as concessionaires/holders of surface rights instead of as owners, they will only have to ensure the initial work and rehabilitation of the properties that are made available to them.

 In effect, the City Council will also ensure the financing of general urbanization works, the organization of the demand for tenants and will promote risk mitigation, through the elimination of uncertainties and time-consuming construction permits.

To conclude, this is an opportunity to invest, with better results, when compared to other equally risky investment types.


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