The dream of owning a house: what kind of homes are investors looking for in Portugal?

The demand for villas has skyrocketed in the pandemic, with more people wanting to build a bespoke home, far from major urban centres. This new paradigm fuelled the premium segment, generating "dynamism in the market", as João de Sousa Rodolfo, architect and CEO of Traçado Regulador, explains in an interview with idealista/news. The pandemic context, he also says, made us "more aware of spaces" and gave impetus to the "exchange of inner-city flats for villas on the outskirts". So, in this new context, how much does a "dream home" cost? And what do investors value most in these properties?

Traçado Regulador designs premium villas, that is, "dream homes" with many square metres (m2), large gardens and infinity pools. The studio has more than a million followers on Facebook and the pandemic has brought it more popularity (and business) both at home and abroad.

According to João de Sousa Rodolfo, the villas end up being "projects that generate great empathy in people". "Everyone dreams of a villa, even if they are not going to build it immediately", he says.

Currently, the studio has more than 80 projects underway. The investors are mainly Portuguese, although foreign clients are increasingly important in the business. They are mainly looking for "houses on open plots, with large areas and spaces with new functions - office, gym, cinema room, wine cellar or wellness centre", and in addition to the garden, pool or minimalist design, they value outdoor living and leisure areas. Inside, in turn, it is important to have "a rich spatiality with a strong relationship with the outside".

Prices can start at 450,000 euros and can reach several million. Everything depends, he explains, on the "size of the dream" of each one. 

"Everyone dreams of a villa" says João de Sousa Rodolfo Traçado Regulador

Traçado Regulador stands out for designing dream homes. What is the portrait of the luxury real estate market in Portugal?

The first difficulty we have is to recognise where luxury begins. I would say that there are three factors that characterise it: location, area and quality. These are characteristics that are universal, but whose sources are difficult to define. It is mostly a relative qualification - the word "luxury" does not mean the same thing for different people.

Simply considering as "luxury" the homes with the highest market value, we can say that this is a sector in sharp growth, with demand from foreigners being decisive.

The premium residential segment is still "alive" and has proved resilient to the pandemic. Why was this so?

The pandemic generated, on the one hand, a crisis "with an end in sight". There was no panic in the market, which would lead to sales at low prices. In addition, the pandemic made teleworking, whose possibility was merely theoretical, become not only a possible reality, but often an advantageous one.

On the other hand, the moments of confinement have made us more aware of the space we inhabit daily, and of the need for a relationship with a natural exterior. In many cases, this has led to a shift from inner-city flats to houses on the outskirts of the city, generating some dynamism in the market.

The pandemic has made people more aware of the spaces they inhabit Traçado Regulador

What is the profile of investors? More Portuguese or foreigners?

We can only speak of the small sample that represents the clients of Traçado Regulador, in this universe - mostly Portuguese, but foreign clients have represented a growing percentage.

What type of houses are they looking for?

Our clients look for houses in open plots, with large areas and with spaces that have new functionalities - office, gym, cinema room, wine cellar, or wellness centre are common requests.

Besides the garden, swimming pool or minimalist design, for example, what other features are valued in the properties?

Outside, apart from the pool, the outdoor living and leisure areas, inside, a rich spatiality with a strong relationship with the outside.

People want new functionalities and a connection with the outdoors Traçado Regulador

Has the relationship with "home" changed with the pandemic? To what extent?

The house is no longer a merely functional issue in people's imagination, that is, the place where one eats, sleeps and sometimes socialises.

The greater permanence inside the house, gave way to the understanding and appreciation of the psychological relationship with the space. Most houses have revealed their inadequacy to this new way of living.

When did you start to design houses and dedicate yourself more intensively to this segment?

Houses are the "architects' cursed projects" - they are a lot of work and, due to their size, they represent a very limited return. Traçado Regulador, like many firms, would prefer to pass over these projects for larger ones.

With the crisis that took place in 2011, we were left with practically no projects. In 2015 we were offered the project of a large villa (1,350 m2), which we accepted. We published the project on social networks and it was a success. More villa projects came and we published them successively.

These are projects that generate great empathy in people - everyone dreams of a villa, even if they are not going to build it immediately. People commented and shared and in no time we were a well-known studio, not only in Portugal, but also abroad.

Villas are not the most profitable project, but they generate empathy in many people Traçado Regulador

How many projects do you have underway? And where?

At the moment we have around 80 active projects distributed over the various phases: preliminary study, preliminary project, project execution, and construction work.

There are more and more people looking for opportunities on the outskirts - also because of the pandemic. What are the most attractive areas?

The most attractive areas are clearly the peripheries close to the large urban centres. But there is also some demand in the interior.

How have prices evolved in these areas?

Naturally, demand generates price increases. There are areas where the price of plots has doubled in three years.

Traçado Regulador has more than a million followers on Facebook - attracted, also, by the world of dream homes. How much does a house of this type cost?

It's a difficult question to answer. We have relatively small houses with construction values of around 450.000 euros, and we have houses that can be worth tens of millions of euros. It depends on the size of the dream!

Luxury villas can go from under half a million into the tens of millions, It depends on the size of the dream Traçado Regulador

Is social media a good outreach tool? Has it helped you do business?

Social networks are a great way to publicise our work. On the other hand, this visibility requires from us an extra care not to make any mistake, that is, a huge concern with the quality of the project, because any negative feedback has a very big impact.

Social networks bring a lot of work, being, along with the sharing of our clients' experience, the main source of attracting new projects. Every day we answer more than 30 contacts coming from Facebook, Instagram and Linkedin.