Unsurprisingly, Lisbon and Porto are the markets where rehabilitation “happens”, accounting for 43% of all houses in this segment accounted for in the pipeline in the first half of 2019. Lisbon remains the most dynamic municipality in launching this housing type, accounting for 908 homes (ie 22% of the rehabilitation portfolio), but Porto is now almost equal, with a portfolio of 864 homes, 21% of the total in this segment.
The predominant concentration of this type of housing in the cities of Lisbon and Porto, which in recent years have experienced a boom in tourism, explains that 40% of the units resulting from rehabilitation in licensing in the first semester are of 1-bedroom property and lower, a type of property more directed to the tourist occupation.
In Lisbon, the weight of these smaller typologies is 43% of the rehabilitated portfolio, although 2-bedroom properties already concentrate 27%- and 3-bedrooms apartments/ houses another 20%. In Porto, the weight of one-bedroom properties and studios in the rehabilitation offer in licensing is 75%, leaving virtually no room for other types. Those weight in the total rehabilitation portfolio ranges between 3% and 11%, the latter being quota for T2 units.
The largest rehabilitation projects will be located in Lisbon and Porto, the two cities that host the only four licensed residential rehabilitation buildings in the period under review with more than 40 homes. Two are in Lisbon and two in Porto, and it should be noted that the largest of these projects does not go beyond 47 units.