Licensing Projects: What is Most Valued by the Real Estate Market
- Ana Carolina Santos
- Nov 16
- 4 min read
The Portuguese real estate market is experiencing a period of significant expansion, with increases in transactions, housing credit, and the number of licences issued by municipalities. Understanding which characteristics are most valued by investors and buyers is essential to maximise the return on architectural projects and ensure the commercial success of developments. Real estate investment decisions are based on a combination of technical, legal, financial, and market factors that determine project attractiveness and profitability. Between January and July 2025, 15,846 licences were issued by municipalities, representing a year-on-year increase of 10%. The area licensed for residential buildings grew impressively by 18.1%, demonstrating the sector’s strength.
This article analyses the elements most valued by the real estate market in licensed projects, offering strategic guidance to optimise architectural design according to demand and expected returns.
The Importance of Licensing in Property Value
The licensing process is not merely a legal formality—it is a determining factor in property valuation. Properly licensed properties offer:
Legal security for buyers and investors.
Easier bank financing with no legal constraints.
Higher appreciation potential compared to irregular properties.
The ability to sell without restrictions or conditions.
Strategic Rehabilitation and Licensing
Urban rehabilitation, when properly licensed, can increase property value by up to 30%. This process also includes significant tax benefits and offers high investment sustainability, making it particularly attractive to experienced investors.
Factors Most Valued by the Market
1. Strategic Location
Location remains the most decisive factor in a property’s value. The market particularly values:
Proximity to public transport and road access.
Integration within consolidated urban centres with developed infrastructure.
Areas with growth and development potential.
Access to amenities (shops, services, cultural facilities).
2. Energy Efficiency and Sustainability
With rising environmental awareness, the market increasingly demands:
High energy ratings (A, A+, or above).
Renewable energy solutions (solar panels, heat pumps).
Sustainable materials and efficient construction processes.
Superior thermal and acoustic insulation.
3. Flexibility and Adaptability of Spaces
Housing
Modular layouts enabling different configurations.
Provisions for home office spaces.
Private outdoor areas (terraces, balconies, patios).
Offices and Commerce
Open plans with adaptable partitioning.
Ample ceiling heights for future adaptations.
Technological infrastructure for multiple uses.
4. Accessibility and Inclusion
Compliance with accessibility regulations, as defined by Decree-Law No. 163/2006, is not only a legal requirement but also a key value factor:
Ramp access and elimination of architectural barriers.
Lifts suitable for limited mobility users.
Accessible sanitary installations meeting standards.
Reserved parking spaces according to ratios.
5. Technology and Home Automation
Installations:
Infrastructure for fibre optics and advanced telecommunications.
Readiness for smart home systems and automation.
Secure and abundant power installations.
Security
CCTV and access control systems.
Integrated alarms and fire detection.
Perimeter protection.
Specific Licensing for High-Value Segments
Short-Term Rentals and Tourism
Despite restrictions in containment zones of major cities, this segment remains strong:
Active outside limited areas in Lisbon and Porto.
Secondary cities and the Silver Coast still offer opportunities.
Full rehabilitation projects may gain licences even in restricted zones.
Whole building ownership simplifies licensing.
Luxury Housing
The luxury segment faces specific challenges such as:
Lengthy licensing processes.
High costs associated with approvals.
Stricter technical and quality requirements.
Licensing Optimisation Strategies
During the Project:
Prior urban feasibility study with a PIP (Preliminary Information Request).
Full compliance with territorial management plans.
Early integration of all engineering specialities.
Anticipate future regulatory changes.
Licensing Process:
Prepare complete documentation to avoid delays.
Maintain technical oversight throughout the process.
Ensure clear communication with municipal services.
Prepare for possible adjustments or conditions.
Post-Licensing:
Comply strictly with licence conditions.
Keep construction documentation organised and updated.
Prepare for inspections and occupancy approvals.
Obtain mandatory certifications, including energy performance.
Growing Segments
Affordable Housing
With public policies supporting young buyers and tackling the housing crisis:
Municipal support programmes for youth housing.
Compact yet functional typologies (optimised studio and one-bedroom units).
Efficient construction solutions that reduce costs without compromising quality.
Urban Rehabilitation
Urban rehabilitation benefits from:
Specific fiscal incentives and municipal programmes.
Potential for value increase of 20–30%.
Simplified licensing for certain interventions.
Contribution to social and urban regeneration.
Practical Example – Feasibility Analysis
Case: T2 Apartment Rehabilitation
Item | Value |
Acquisition value | €200,000 |
Rehabilitation investment | €50,000 |
Post-rehabilitation value | €300,000 |
Calculated ROI | 20% |
This example shows how a strategically licensed rehabilitation project focused on market-valued attributes can generate meaningful returns.
Market Trends 2025–2026
Growth Forecast
5–8% property value increase in 2025.
Gradual slowdown to 2–4% in 2026.
Continued high levels of foreign demand.
Ongoing growth in housing loans.
Differentiation Factors
In a competitive market, projects stand out when they integrate:
Technological innovation and smart solutions.
Proven, certified environmental sustainability.
Exceptional material quality and finishes.
Strategic locations with appreciation potential.
“The difference between a successful investment and a mediocre one often lies in anticipating and integrating the market’s most valued features during design and licensing phases.”
Practical Advice for Investors
Before Investment:
Conduct detailed market research by typology and location.
Compare similar licensed projects in the area.
Assess appreciation potential based on local trends.
Study demographic and socio-economic evolution.
During Design:
Integrate sustainable and efficient features.
Plan flexibility for future adaptations.
Ensure full compliance with accessibility standards.
Balance cost-efficiency with perceived value.
After Licensing:
Document all features that enhance value.
Highlight differentiating elements in promotional material.
Keep all certifications valid and visible.
Key Takeaway
The success of any real estate project depends on aligning architectural vision with market expectations. Understanding what investors and buyers truly value helps optimise the licensing process, maximise return on investment, and promote sustainable, inclusive urban development.
Portugal’s stable economy, quality of life, modern infrastructure, and fiscal incentives make it a highly attractive destination for both national and international investors. Taking advantage of this environment requires a strategic, well-informed approach at every stage—from concept to completion.
