Description

This is a construction-ready residential development opportunity in the historic center of Setúbal, positioned for strong capital appreciation and rental performance. The sale includes a prime urban plot and a fully approved architectural project for a 14-unit residential building—eliminating licensing risk and allowing immediate progression to construction.

The project can be acquired as an approved development ready to build or delivered fully constructed under a turnkey structure. This flexibility allows investors to either capture full development margins or secure a completed asset ready for immediate sales or rental stabilization.

As an investment, the project is positioned in one of Portugal’s most rapidly appreciating regions. In early 2026, the Setúbal Peninsula leads the country in property value growth, with apartment appraisals increasing over 29% year-on-year. In addition, current fiscal incentives—including a reduced 6% VAT rate for new construction and a 10% income tax rate on “moderate rent” leases—significantly enhance net return potential for developers and long-term holders. With rental yields consistently reaching approximately 7.3%, the development offers a clear path to high-margin resale or the creation of a strong-performing income portfolio in a market defined by structural housing shortages.

The approved project has been strategically designed to target the most liquid segments of the market—studios and one-bedroom units optimized for rental demand, alongside two- and three-bedroom duplexes suited for resale or premium long-term tenants. A private interior courtyard with swimming pool provides a significant competitive advantage in this central historic location, where outdoor amenities are exceptionally rare.

From an investment standpoint, the opportunity supports multiple exit strategies: sell units individually upon completion, retain the building as a stabilized rental asset, execute a phased hybrid strategy, or acquire it fully delivered as a turnkey completed development. With continued infrastructure investment and sustained housing undersupply across the Setúbal Peninsula, long-term fundamentals remain exceptionally strong.

Key Investment Features

• Fully approved architectural project – immediate construction readiness
• Option for turnkey delivery fully constructed
• 14 residential units: studios, 1BR, 2BR, and 3BR duplexes
• Designed for strong rental absorption and resale liquidity
• Private central courtyard with swimming pool (rare in historic center)
• Premium finishes specified (Lioz marble, oak flooring) supporting higher pricing power
• Walkable historic location near market, marina, restaurants, and services
• 30 minutes from Lisbon – captures capital spillover demand
• Multiple exit strategies: build-to-sell, build-to-rent, hybrid model, or turnkey acquisition
• Positioned in one of Portugal’s fastest-appreciating coastal commuter markets

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