Written by Roseanne Bradley,
30th May 2023

GNB Real Estate has confirmed a €365 million project to bring over a thousand new homes to Portugal.

The project has been named Eleanor and involves land in Amoreiras, Lisbon and the Algarve. The land deal includes 133,000 m2 across six lots next to Amoreiras, Lisbon and is valued at €240 million euros.

New homes planned in Lisbon and the Algarve

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Project Eleanor specifics

The project was launched by GNB Real Estate (GNBRE), the subsidiary of Novo Banco responsible for real estate, confirmed the deal late last week. In a report by Expresso, Volkert Schmidt, president of GNBRE said the proposed price of the land is merely, “indicative”, and “the market will dictate the outcome.”

The land included in the project is divided across four locations in Lisbon and the Algarve. Please see below for particulars.

1. Amoreiras, Lisbon

Here, 133,000m2 of land across six lots has been valued at €240 million. 51% of this development is intended for residential use and should add 683 homes to the Lisbon property market.

2. Olivais Sul, Lisbon

88,800 m2 across four lots valued at 43 million euros. This development is indented for offices, shared residences and commerce.

3. Benagil, Algarve

This land is in its final licensing phase and is valued at 52 million euros. The 68,000m2 development includes a hotel with 150 rooms, tourist apartments, villas and residences.

4. Arade, Algarve

The second-largest plot lies in Arade, presumably along the Arade River in southern Portugal. This development is licenced and has a value of 32 million euros. It plans to bring 652 homes to the market, along with tourist and hotel resorts.

Lisbon skyline


New homes in Portugal

New homes in Portugal have been rising in poularity for several years. Between quarter 1 and 3 of 2022, the number of transactions for new dwellings in Portugal increased strongly to 16% year-on-year to 23,064 units while transaction values rose by 28.7% year-on-year to €5.91 billion.

These sales outnumbered the number of transactions for existing homes which equalled 106,310 units during the same period, equating to a 6.4% year-on-year rise. Transactions value for existing dwellings increased to $18.51 billion – a 21.1% increase on the previous year.

It makes sense developments like the above are popping up in areas as popular as the Algarve and Lisbon. The two areas registered a year-on-year increase of 16.7% and 5.9% respectively, in the first three quarters of 2022.

Property prices here in Portugal have increased by 15% since last year.

Colourful houses in Porto

House prices in Portugal: 2023 outlook

Recent data from the Instituto Nacional de Estatistica revealed house prices in Portugal were 10% higher in the fourth quarter of 2022, compared to the same period in the previous year.

The four regions with the highest median house prices included the Algarve, Área Metropolitana de Lisboa, Região Autónoma da Madeira and Área Metropolitana do Porto.

However, in the final quarter of 2022, the property market saw a deceleration of housing prices in 14 of the 24 Portuguese municipalities with more than 100,000 inhabitants). Some municipalities saw decreases higher than 10 percentage points (p.p.). They included Barcelos, Maia, Matosinhos and Lisboa.

At year-end 2022, the national median house price in Portugal was €1,484 per m2. It was considerably more in Algarve (€2,339 per m2), Lisbon (€2,096 per m2), Porto (€1,609 per m2) and Madeira (€1,571 per m2).

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The Portugal Buying Guide is designed to support you through each stage of buying property in Portugal, providing relevant, up-to-date information and tips from Portugal property experts and expats who have been through the process themselves. It helps you to:

  Impact of Brexit
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  Ask the right questions
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  Avoid the legal pitfalls
  Move in successfully

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