The Municipality of Barreiro, in the district of Setúbal and within the Lisbon Metropolitan Area, is preparing to launch an international tender for the development of 202 affordable rental homes at Quinta das Canas, in an investment estimated at €30 million, according to Público.
Approved by the municipal executive on 13 August, the project will be entirely financed by the private partner selected through the tender, expected to be launched by the end of 2026. The investor will be responsible for the design, licensing, financing and construction of the scheme, as well as the surrounding infrastructure.
The development will comprise 20,422 sqm of construction area, including 64 one-bedroom, 96 two-bedroom and 42 three-bedroom apartments.
The municipality will grant the investor a surface right over the publicly owned land, while retaining ownership of the site. Once completed, the homes will be leased to the municipality and subsequently sublet to households under its affordable housing programme.
The contract will run for between 50 and 60 years, during which the investor is expected to receive monthly rental payments of between €139,637 and €151,650. At the end of the contract, the buildings will revert to municipal ownership at no additional cost. The municipality estimates a return of around 5% for the private investor and has already held discussions with several investment funds.
Rents will be capped at €600 for one-bedroom homes, €775 for two-bedroom units and €925 for three-bedroom apartments, with individual household rents limited to 35% of household income.
The scheme is the second major private-sector partnership launched by Barreiro to increase affordable housing supply. In June, the municipality signed an agreement with Cosmos Sideral for the development of 800 cost-controlled homes at Mata dos Lóios.
The Quinta das Canas project is expected to begin delivering its first homes slightly more than two years after the tender is launched.
