A significant new housing and commercial development is set to rise in Santo António dos Cavaleiros, Loures, just outside of Lisbon. The project, backed by a €140 million investment from the real estate developer AM48, will introduce 400 new apartments and contribute towards alleviating Portugal's housing crisis. As the housing market struggles with limited availability and soaring prices, projects like this offer a much-needed solution for middle-class families seeking homes in the Lisbon metropolitan area.

Located on a newly acquired plot of land in the center of Santo António dos Cavaleiros, this ambitious development covers over 80,000 square meters, with 90% dedicated to residential space and the remaining 10% reserved for commercial purposes. The project will offer apartments ranging from T1 to T4, catering to a wide spectrum of housing needs. The estimated prices for these units will range from €280,000 to €700,000, providing a variety of options for families of different sizes and budgets. Additionally, each apartment will come with private parking, addressing one of the common concerns in urban living.

One of the most notable aspects of this project is its commitment to revitalizing an area that has long been neglected. The project will transform a previously abandoned lot with incomplete infrastructure into a vibrant residential and commercial hub. According to AM48’s CEO, the project aims to bring "a new quality of life" to the area by introducing quality housing, enhancing local commerce, and integrating the development into the natural landscape through green spaces and sustainable architecture.

The project’s proximity to essential services is another key feature. The site is located near the local health center and is just a five-minute walk from the future Violet Line metro station, which is part of Portugal’s Recovery and Resilience Plan (PRR). The completion of the new metro line, scheduled for the second half of 2026, will improve accessibility to Lisbon, further enhancing the attractiveness of this development for those who work in the city but are seeking more affordable housing options in the surrounding areas.

Moreover, the commercial space within the development will be a key driver for local economic growth. The ground floors of the buildings will house a range of businesses, including a medium to large retail food outlet, a health club with gym facilities and a swimming pool, and various smaller shops such as a pharmacy, pet store, and stationery. A new public square will feature a playground, gardens, and outdoor seating areas, fostering a sense of community and providing a gathering place for residents and visitors alike.

From an architectural perspective, the project will seamlessly integrate with the local environment. The green areas surrounding the buildings will feature native trees and shrubs, creating a visual extension of the nearby municipal park. This attention to sustainable design and environmental harmony reflects AM48’s commitment to creating not only homes but also spaces that enhance the quality of life for residents and the surrounding community.

The construction of the project will begin in early 2025 and is expected to be completed by 2030, with the first two buildings available for sale in the first quarter of 2025. Once finished, the development will provide housing for up to 1,500 people, making it one of the largest residential projects in Portugal in recent years. This scale of development is crucial for a market currently experiencing a severe housing shortage, particularly for middle-income buyers.

In the context of Portugal's broader housing crisis, projects like this are vital. The Lisbon area has seen housing prices skyrocket in recent years, driven by limited supply, high demand, and foreign investment. Many families, especially those in the middle class, have been priced out of the market, unable to find affordable homes. By focusing on building housing outside of the city center, AM48 is responding to this growing need, helping to decentralize urban development and create more options for those who might otherwise be excluded from the housing market.

What sets this project apart from many others is that it is not driven by foreign investment—a factor that has contributed to the escalation of prices in many areas of Portugal, particularly in prime locations like Lisbon and the Algarve. Instead, the development is aimed at the local market, offering housing solutions for Portuguese families while revitalizing an underserved area.

As Portugal continues to grapple with the housing crisis, initiatives like this represent a hopeful step forward. The introduction of 400 new apartments in Loures will help to ease the pressure on the housing market and provide much-needed relief to middle-class buyers. Furthermore, the integration of residential, commercial, and green spaces into one development sets a new standard for sustainable urban living in the Lisbon metropolitan area.

I think this new project in Santo António dos Cavaleiros is more than just another housing development. It feels like a strategic response to Portugal’s housing challenges, offering high-quality, affordable homes while breathing new life into a neglected area. The combination of residential and commercial spaces, sustainable design, and proximity to transport links and essential services really sets it apart. In my view, this project has the potential to play a significant role in shaping the future of housing in Portugal, especially for middle-class families who have been struggling to find suitable homes in the current market.

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