Spanning 63,500 square meters and featuring 466 residential units across seven buildings, NoLiPa will include a mix of apartment types ranging from studios (T0) to four-bedroom units (T4), with floor areas between 43 and 185 square meters. Prices will range from €320,000 to €1 million, with an average price of around €7,000 per square meter.

Despite high construction and land acquisition costs, more than 90% of early interest in the project has come from Portuguese buyers. Alongside the residential component, the development will also include retail spaces and facilities for services such as offices or hotels.

The project is being developed with the support of Aermont Capital, an independent asset management company that has backed other Avenue developments in Portugal. Infrastructure works for NoLiPa are already well underway, and the construction of buildings is scheduled to begin in the current quarter. Completion is expected by 2027.

As Lisbon continues to gain traction among investors, developers are increasingly vocal about the need for reforms to sustain growth and make housing more affordable. The real estate sector is urging the government to simplify administrative processes and reduce taxes, particularly the VAT (IVA) on construction.

Industry leaders argue that lengthy and complex licensing procedures contribute significantly to inflated housing costs. According to recent data, licensing delays can increase property prices by more than €500 per square meter. In response to these challenges, the implementation of “Simplex Urbanístico,” a government program introduced in March 2024, has already shown positive results. Lisbon saw a 24.8% increase in the approval of urban development projects between March and December 2024 compared to the same period the previous year.

However, developers maintain that more aggressive streamlining is necessary. In their view, reducing bureaucracy is only part of the solution. The sector also wants to see fiscal reforms that would ease the cost burden on construction and ultimately lower housing prices for consumers.

A key proposal on the table is the reduction of the VAT rate for construction from 23% to 6%, a measure included in the government's Construir Portugal program. Though not yet implemented, this tax cut could significantly reduce final home prices. According to industry estimates, such a reduction could bring down the cost of housing by as much as €700 per square meter.

By lowering taxes and accelerating project approvals, developers believe they could deliver more affordable homes at a faster pace. These reforms, they argue, are not only crucial for the industry’s sustainability but also for addressing Portugal’s housing affordability crisis.

Lisbon’s combination of strong domestic demand, strategic urban planning, and increasing investor confidence continues to make it a focal point for major real estate initiatives, has provided the regulatory and tax environments evolve to support this momentum.

Author

Paulo Lopes is a multi-talent Portuguese citizen who made his Master of Economics in Switzerland and studied law at Lusófona in Lisbon - CEO of Casaiberia in Lisbon and Algarve.

Paulo Lopes