The rehabilitation of buildings in Lisbon is back to its pre-crisis numbers
The tourism industry is an important factor behind the figures recorded for the rehabilitation of properties.
The renovation of buildings is increasing in Lisbon, especially in the Chiado and Bairro Alto districts. From January to June 2016, 27 residential buildings have been rebuilt, mostly to expand the offering on the local housing market. Tourism has been a major factor in the increased level of renovation on the real estate market. Most of the renovation work involves small apartments.
TOURISM, RESPONSIBLE FOR THE REHABILITATION BOOM IN LISBON
New built properties are much rarer in the capital. Today, the largest new housing construction project is located on the Avenida da Liberdade at the Sottomayor Residences. The development has 97 apartments and is under construction.
Valuations for rehabilitated building are much higher than for new built. Price-wise, the most expensive areas are precisely located in Bairro Alto, Chiado and Sao Paulo, where the square metre can reach 6,200 euros. Prices per square metre in areas such as the Avenida da Liberdade and Principe Real are not much different peaking at around 6,000 euros.
The seasonal tourism rental sector is responsible for a good number of real estate transactions, with French and Chinese clearly the main investors: the Chinese as part of the Golden Visa, and the French for the non-habitual resident program.
The growth in tourism and the subsequent property valuations it generates ends up creating bottlenecks and reduces the access to other types of properties such as quality offices.