The effects of the real estate pressure currently being experienced in Lisbon are beginning to spread to the other side of the Tagus River. Alcochete is one of the towns on the Southern Side of the river feeling the effects of this most keenly, with demand and housing prices growing, in parallel with the (still timid) upturn in construction – especially for high-end developments. With the capital city being so close and the special nature of the town, Alcochete is rapidly becoming an investment refuge for those who want to "live well" and cheaper than in Lisbon.
The municipality is "feeling the effects of residential and tourist pressure in Lisbon, which has forced people’s searches to extend to this side," says the mayor of Alcochete. Speaking to idealista/news, Fernando Pinto says that "Alcochete is a pleasant, safe, peaceful place, with excellent conditions for those who want to live here" and that "this combination of factors has increased demand and, consequently, prices".
New construction in Alcochete restarts with quality projects
With regard to housing stock, Pinto says that "the construction market stopped with the financial crisis and the intervention of the troika and is taking advantage of this moment of economic improvement to resume its normal growth in line with demand". In relation to new buildings, he says that "growth is reasonable but not extraordinary", but "the latest private developments are in the high-quality sector" near the Tagus estuary.
This is an idea shared by the director of the development company Quintela e Penalva – Real Estate, Jorge Costa, who considers that the supply and demand in the southern area, particularly in Alcochete, as "being a healthy refuge both for investment as a solution for a more accessible and liveable market just a stone's throw from Lisbon". The fact that the values are "lower than in the centre of Lisbon" makes this municipality "a perfect place to live".
For Jorge Costa, Tagus Bay is a clear example of this reality: "It’s the perfect place to live; once again the accessibilities are great, the condominium is modern and has everything so that you can live in a balanced way, both in winter and summer. The space available is very generous and the typologies aim to reach various targets, from T1 to T4 (one bedroom to four bedrooms), which makes it possible either to live on your own or with a family with a large household". Of the new projects that are being marketed in this city, the Praia do Sal – Lisbon Resort mixes hospitality and residential property. Both belong to the Libertas Group.
The average price in this area reflects, according to Quintela e Penalva, "a low quality of supply, between 1500 and 2000 euro per square metre (between 139 and 185 euro per square foot), although the "new projects increase the quality of supply and push prices up to 3000 euro/m2 (279 euro/sq ft)".
The mayor of Alcochete makes the caveat for the rehabilitation of property in the town which, as he says, "fortunately, has been remarkable" and that there has been "a lot and of a high quality". He gives as an example the typical neighbourhoods that "are more beautiful and renovated… without losing their traditional architectural features".
One of the richest zones in the Greater Lisbon Area
He also states that this "is not a council with a great lack of social housing and it does not mean that, whenever necessary, the chamber won’t be attentive to the future constructions for this purpose". It should be remembered that in 2017, the National Institute of Statistics (using data reported in 2015) said that Alcochete was among the richest municipalities in the Lisbon Metropolitan Area.
As for investment, he says that "we are balancing the accounts of the municipality and soon we will certainly have new investments". At this moment, they "are at the evaluation stage to do things right and not just invest for investment’s sake". Without revealing too much, he says that there are "projects we are working on that will be announced in due course".
New hotel in Alcochete
Right now, there is a hotel being built in the centre of Alcochete with huge architectural quality. The urban rehabilitation project, which involves the expansion of a varied group of buildings built at different moments from the beginning of the twentieth century in the historic centre of Alcochete, belongs to the OODA (Oporto Office for Design and Architecture).
The information advanced by this architectural studio to idealista/news reveals that the building on the corner of the Avenida dos Combatentes da Grande Guerra and the Rua Padre Cruz seems "to have originally served as a warehouse for industrial activities, possibly related to the proximity of the river or the farms whose agricultural production also needed storage". The southern building, which is also on the corner between the Almirante Gago Coutinho square and Rua Padre Cruz, is said to have housed on the ground floor "a mill and would also serve as an oil warehouse" and on the upper floor "it must have served as an administrative part of the agricultural business, originally installed in the building".
This complex will be transformed into a hotel with 30 rooms on the 1st and 2nd floors; a restaurant, a bar/reception and a patio/garden located on the ground floor; and 13 parking spaces, laundry, restaurant storage and changing rooms for hotel staff in the basement, which is yet to be built.
OODA states that it "intends to conserve the existing façades", namely the "traditional building elements such as the bricks and rough mortar", while introducing "a contemporary design that establishes a connection between the two distinct epochs – not imitating the current one, but interpreting it".
Quality restoration works
At the same time, traditional trade is maintaining its character and the restoration works are growing in both quantity and quality, diversifying the supply of real estate in Alcochete. The town also has a logistics park that has grown more thanks to its excellent location than to the pressure of demand.
The Regional Tourism Entity of the Lisbon Region (Entidade Regional de Turismo da Região de Lisboa) and the Tourism Association of Lisbon (Associação de Turismo de Lisboa) will make a grant available to support the marketing and sale of local companies’ products. According to the mayor, this measure may further reinforce the development of Alcochete as a shopping destination. As he says, "all the measures to increase new opportunities contribute decisively to increase the turnover of companies and strengthen their close relationship with the municipality".
New airport in the area?
Much is said about the new Montijo airport but it seems this infrastructure has not yet had direct impacts on real estate in the region, in contrast to the aforementioned residential and tourism pressure in Lisbon.
Speaking on the new airport, the Mayor of Alcochete, Fernando Pinto, says that he has always considered that "the best solution would be the construction of an city airport in the region to replace the current Lisbon airport". Taking into account the financial constraints for a project of this size, he believes that "use of the BA6 as support infrastructure for the Humberto Delgado Airport is a perfectly acceptable solution provided that, as stressed by Prime Minister António Costa, the environmental study meets the requirements that allow its construction". He added that "it is up to the municipality to enhance the positive effects of this work and minimise the negative effects".
Asked about the fact that this infrastructure will have to be built along the banks of the Tagus Estuary, he says that "this is not the only case" and that "options and decisions must be made as long as the environmental issue is properly safeguarded". He recalls that "with the construction of the Vasco da Gama Bridge, there was a lot of talk about issues that have never come to pass". For this reason, he argues that "we must look calmly at these investments, which are of national importance, and not just think about our territory. The priority is to safeguard the well-being of the inhabitants of the municipality, but it is also important not to prevent it from developing, generating wealth, employment and better living conditions. We’re awaiting the development of the process and we remain attentive".
As for the relationship between the announcement of the new airport and the potential impacts on real estate changes in Alcochete, Fernando Pinto says he doesn't have "clear data that allows us to say that the price increase in Alcochete is a direct result of the possible construction of the airport in the BA6".