The housing market needed to undergo shock therapy.

A major real estate project is emerging on the outskirts of Lisbon, in Sacavém, consisting of around 700 homes targeted at the middle class. The project, named Clarissas, is being developed by the Belgian real estate developer Thomas & Piron (T&P), and it marks their fourth project in Portugal—two of which were developed in partnership with fellow Belgian company Promiris. “If everything goes as planned, as it has so far, by the end of the year we’ll be ready to begin construction. Although, in fact, we’ve already started: works on Praça da República have been underway since July 2024,” reveals David Carreira, Country Manager of T&P Portugal, in an interview with idealista/news, held at the site where the development will be built.

In addition to Portugal, T&P operates in Belgium, Luxembourg, France, Switzerland, and Morocco. In all these countries, the company focuses on the middle class, so it’s no surprise that their investment in Portugal is also geared toward this market segment—especially at a time when various industry players are calling for more housing to meet the high demand from families. “95% of the 1,500 units we build annually are for the middle class, and since that’s our core business—and exactly what Portugal needs—we decided to invest in the Clarissas project,” says David Carreira. He also adds a word of warning: “Portugal’s housing market needs a shock therapy.”

Thomas & Piron in Portugal

Tell us a bit about the Clarissas project, which will rise on this plot here in Sacavém (Loures), on the outskirts of Lisbon.

The project was acquired by T&P in September 2022—nearly three years ago—from Banco Montepio, which had inherited it through a bankruptcy. We submitted a request for a subdivision permit to the Loures City Council at the end of 2024, and we’re waiting for the Environmental Impact Study to be approved, which we submitted in February. If all goes well, by year-end we’ll be ready to begin construction. In fact, works on Praça da República began in July 2024. This is part of the commitments the developer has with the local government, which required these compensatory works to begin before any construction inside the development.

Clarissas will be built on the site of a former military barracks and a convent. What is this building?

The building where we’re doing this interview is the former Convent of Our Lady of Martyrs and the Immaculate Conception of Miracles. It dates back to the 16th century and was abandoned for the past decade. For the previous 80 years, it was occupied by the military—so, it served as a barracks. The idea is to restore it and install a private facility there. We’re still in talks, and we don’t yet know exactly what it will be, but the goal is to rehabilitate it and give it a use that serves the local community.

We’re talking about an investment of around €300 million in this project. How much did the land cost T&P?

The land itself cost €22 million. But adding the property transfer tax (IMT), due diligence, and other costs, the investment already totals around €30–35 million. The total estimated investment is between €300 and €310 million.

How many homes will Clarissas have, and what are their layouts?

It’s a €310 million investment for about 700 housing units. We always aimed to maximize what the zoning allows, which is 760 homes, but we’ll likely end up between 700 and 720. The layouts will range from one- to four-bedroom apartments, including duplex T3 and T4 units. There will also be around 9,000 square meters of retail space, including a local supermarket and traditional shops. Near Praça da República, there will be a building solely for services, likely offices, with a parking facility for residents, future convent users, and local visitors.

Clarissas is T&P’s fourth project in Portugal, with two in partnership with Promiris. Is this one more focused on the middle class?

Yes, this was the fourth project we acquired. The first two, in partnership with Promiris, were Conde de Lima in central Lisbon and Gaia Hills in Vila Nova de Gaia. Then we bought a smaller one—Docks Matosinhos, with 31 apartments—located directly across from Matosinhos' docks. Those units are being sold and construction is underway.

At some point, we realized that what Portugal truly needed was middle-class housing, which is also the core business of T&P abroad. Since 95% of the 1,500 units we build each year are for the middle class, we decided to invest in Clarissas. Yes, the 700 units are aimed at the middle class. Now we just need to determine what “middle class” will mean in a year’s time, when we begin sales.

You said construction on the project may begin this year. But this is a long-term development, right?

From acquisition to final completion, we’re looking at 11 to 12 years—that’s what’s outlined in our business plan. Construction of the subdivision and buildings is set to start in 2026, along with sales. Then, over the following eight years, we plan to complete the nearly 94,000 square meters of construction. But all of this depends on the pace of sales. If we sell quickly, we may finish in six years instead of eight. That would be great for us—the sooner we finish, the sooner we can move on to other projects.

What’s the current status of your other three projects: Conde de Lima, Gaia Hills, and Docks Matosinhos?

Conde de Lima was for the upper-middle class, located in central Lisbon, with 41 apartments—all sold and delivered. We’re now in the post-sale service phase.

Gaia Hills is moving into its second construction phase, starting between July and September. About 84% of phase one is sold, and nearly 50% of phase two is already sold. The first phase should be completed in Q1 2027, and the second in Q1 2028. Gaia Hills is a good example of what might happen with Clarissas. Originally, we planned to start phase two in 2027, but due to strong sales, we’re starting earlier. That could happen with Clarissas as well—we hope so.

Docks Matosinhos is under construction and should be completed by the end of next year.

That makes about €450 million in investment across the four projects so far…

Yes, although some of that is shared with Promiris. T&P’s portion is about €350–360 million.

Back to Clarissas. Would you consider it one of the major residential real estate projects underway in Lisbon?

Clarissas is a large-scale residential project. In fact, at the moment—and I say this with some confidence—it is T&P Group’s largest residential project, with about 94,000 square meters of construction. Within Lisbon’s metropolitan area, it’s certainly a major project—although not the only one. More importantly, it’s a project that aims to rehabilitate an area that has been off-limits to the public for seven or eight years. It was a military site, closed to the public. Now we’re returning ten hectares to the people. We’re not better or worse than other developers—this was simply the site we chose.

What about future plans? Any new investments in the pipeline?

T&P is here to stay—we didn’t come just for a one-off project. This 12-year project proves that. For now, we’re focused on getting Clarissas fully underway. We’re open to other projects—mainly in the Lisbon and Porto metropolitan areas. In Lisbon, we’re looking outside the city center, in surrounding municipalities. In Porto, we’re interested in Gaia and Matosinhos. Will we close a deal this year? I don’t know.

Are there more sites like Clarissas—such as old military barracks—that could be transformed into large residential projects?

In Lisbon’s metro area, yes. In Loures alone, we know of two more such sites. Oeiras has two or three. But we need to be cautious and grounded. Right now, the goal is to solidify the Clarissas project, get it running smoothly, and prove that our Excel-sheet projections are accurate. If we do that, it will help convince T&P leadership to continue investing in Portugal—they’re already convinced that this is a market worth betting on.

Portugal remains an attractive destination for real estate investment, especially given the need to increase housing supply?

As engineer Fernando Santo once said, we’re building the same number of homes as we did after the Carnation Revolution—about 25,000–30,000 per year. In the early 2000s, we built 125,000 annually. Then for 10 years, we built nothing. So, there’s a serious housing shortage in Portugal. There’s room for more. But we need to streamline some processes to allow things to develop more efficiently.

What’s your view on the Simplex Urbanístico (Urban Planning Reform)?

I’m somewhat critical of it. It brought some benefits, but fewer than expected. Simplification is important, but Simplex tried to simplify too much—it went too far. We need consistent rules across the country. Having 308 municipalities, each with their own regulations, complicates everything. Simplex tried to shift responsibility from city councils to developers and designers. That’s not the solution.

What would the solution be, then?

There’s no perfect solution, but there are several international models we could apply. Each region has its specificities, but a consistent framework across all municipalities would help. Also, the rules for financing—on both the developer and buyer side—need to change. In countries like Belgium, Luxembourg, and France, those who buy off-plan are better protected by bank financing. If buyers are pre-financed as construction progresses, everyone saves—developers and buyers. But to make that happen, we must shift the current paradigm where banks require 30% of pre-sales to open construction credit. For that, we need to attract investors because the middle class struggles to buy off-plan. This must change.

Would reducing VAT on construction to 6% help increase housing supply, as some industry players claim?

Yes, of course. Those in the sector know that 35–40% of a home’s cost goes to the state—mainly through VAT at 23%. In urban rehabilitation zones like Clarissas, we get the reduced 6% VAT rate. If that were more broadly applied, it would help. But it won’t reduce home prices by the same percentage. If VAT drops by 17%, prices may fall by 10–12%. Still, it would help stabilize prices and possibly stop them from rising.

Is T&P focused more on Build to Sell (BtS) or Build to Rent (BtR)?

Clarissas is clearly a BtS project—built to sell. If some investors buy to rent out units, that’s fine, but our focus is BtS. Abroad, T&P handles all aspects—development, construction, sales. In Portugal, we’re primarily developers, and BtR isn’t our core business.

Who’s buying—Portuguese or foreigners?

Conde de Lima was 80% sold to foreigners. Gaia Hills is 60–65% Portuguese buyers. Docks Matosinhos, about 90% Portuguese. So, except for Conde de Lima, we’re not just building for foreigners.

How can Portugal increase its housing supply, and what’s the government's role?

Portugal’s housing market needs a “shock therapy.” That means bringing everyone to the table—developers, builders, material suppliers, industry associations—and having an honest, ideology-free discussion. Only together can we solve this problem. Isolated measures from left or right might work temporarily, but not long term.

A final word?

Only by opening honest dialogue and learning from successful models abroad can we truly move forward.