Explore Porto’s residential development surge with 3,155 new dwellings in the pipeline, highlighting its growing allure for real estate investors.
In a remarkable display of urban dynamism, Porto has emerged as the vanguard of residential development in Portugal, with a staggering 3,155 new dwellings currently in the pipeline for licensing. This figure represents a notable 23% increase over the total portfolio registered for the entirety of 2023, underscoring the city’s burgeoning appeal to investors and developers alike.
According to data meticulously compiled by Confidencial Imobiliário, utilizing the Pipeline Imobiliário information system—which focuses on energy pre-certificates issued by ADENE—Porto’s licensing applications between January and October of this year have eclipsed previous records. This surge in applications, nearly 600 more than last year’s total, is indicative of a robust recovery in the housing sector following the pandemic-induced slowdown.
Throughout this ten-month period, municipal authorities across mainland Portugal received a staggering 18,130 requests for new housing projects, which, upon completion, will introduce an impressive 53,790 dwellings to the market. Notably, this pipeline already surpasses the 51,900 dwellings submitted for licensing in 2023 by a margin of 1,900 units, reflecting a sustained upward trajectory in housing investment.
The first ten months of this year have confirmed a consistent growth pattern in new housing investments, a trend that has persisted over the past two years. Following a brief hiatus during the pandemic, the sector rebounded in 2022, with 43,800 dwellings submitted for licensing—an increase of 17% compared to the previous year. The momentum continued into 2023, with applications rising to 51,900 homes, marking an 18% growth.
As we look ahead to 2024, the data reveals that the number of licensed dwellings has already surpassed the total from the previous year, boasting an average monthly growth rate of 24%. During this timeframe, an average of 5,380 new dwellings were submitted for licensing each month, a significant increase from the 4,320 registered monthly in 2023.
Porto leads the charge among the 11 municipalities with over 1,000 dwellings in the pipeline, with Lisbon trailing behind at 2,250 units and Vila Nova de Gaia at 2,210. Other municipalities, including Matosinhos, Vila do Conde, Braga, Barcelos, and Vila Nova de Famalicão in the North, as well as Leiria in the Center and Sintra and Loures in the Lisbon Metropolitan Area, have also submitted over 1,000 homes for licensing. Almada and Maia round out the list with approximately 900 dwellings each.
Interestingly, while the sheer number of dwellings in the pipeline has surged, the number of individual projects remains relatively modest. This phenomenon highlights a growing trend towards larger-scale developments. As of October, there were 18,130 new housing projects with licensing applications nationwide, of which 35 projects boast more than 100 apartments each. In contrast, the national pipeline for 2023 included 20,385 new residential projects, with only 21 exceeding the 100-apartment threshold.
The significance of these larger projects is becoming increasingly apparent, as they now account for 9% of the total number of dwellings in the pipeline for 2024, translating to approximately 4,800 apartments. Last year, this segment generated around 2,900 apartments, representing 6% of the total pipeline.
The 35 largest developments slated for 2024 are distributed across 19 municipalities, with Porto leading the pack with six projects. Lisbon, Almada, Gaia, and Matosinhos each host three projects, while Portimão boasts the largest single project in the pipeline, featuring 218 apartments.
Porto’s ascendancy in the realm of residential development is not merely a statistical anomaly; it is a testament to the city’s resilience and attractiveness as a hub for investment. As the real estate landscape continues to evolve, one can only speculate on the heights to which this vibrant city will soar in the coming years.
