Portugal is a beautiful nation known for its rich history, stunning coastlines, wine, and gourmet cuisine. However, today, Portugal is a forerunner in the global race towards sustainable living.
Portugal’s push for eco-friendly homes and real estate developments is a testament to the nation’s commitment to a greener future—although building sustainably is far from easy. Real estate expert Luis Horta e Costa, COTEC’s Jorge Portugal, and CBRE’s Cristina Arouca explain the origins of the Portuguese sustainability movement and share how Portugal makes eco-friendly living a priority.
Portugal: Europe’s Leader in Sustainable Real Estate Development
Portugal has made itself Europe’s number-one eco-travel destination. Known for its unspoiled views of nature, beaches, and lush greenery, many travelers visit Portugal to see sustainability in practice. Portugal can preserve much of its natural beauty because of its efforts to design eco-friendly homes and encourage sustainable living.
Forty percent of global carbon emissions come from buildings, electricity consumption, and construction materials. To be carbon neutral by 2050, the Portuguese government passed several laws and incentives to encourage sustainable real estate developments.
But it isn’t just the Portuguese government taking action—Portuguese citizens believe sustainability is important, too. Eighty-three percent of investors believe Portuguese renters will demand more sustainable properties in the future, so real estate developers must build eco-friendly buildings today to meet that future demand.
Luis Horta e Costa, Other Experts, Explain Portugal’s Emphasis on Eco-Friendly Construction
Several Portuguese real estate and business experts explain how Portuguese developers are implementing the government’s ambitious plan to be carbon neutral by 2050.
Carbon-Capturing Construction Materials Reduce Emissions
Although materials like concrete and metal were once popular for construction, many Portuguese real estate developments are abandoning them in favor of more eco-friendly, long-lasting materials.
According to CBRE Portugal, wood is becoming a popular alternative to concrete. This material traps carbon dioxide in the air, which concrete can’t do. If enough developers opt for wood in their buildings, it could help Portugal reach its carbon neutrality goal. Wood often costs the same or less than conventional materials, so it’s an economically and environmentally advantageous choice.
Real estate developer and Square View founder Luis Horta e Costa is using sustainable materials to build environmentally friendly communities across Portugal. “We avoid concrete, and we always try to use wood,” he says. “It’s cleaner, and it doesn’t have an impact on the environment.” In his experience, wood is more aesthetically pleasing and also has better acoustic properties than conventional materials.
However, Luis Horta e Costa believes developers must find innovative ways to make sustainable materials more affordable. “We are always looking for new ways of building materials, and we are very focused now on the modular system,” he explains. Opting for modular structures that use a similar design reduces waste and, as a result, construction costs.
This isn’t an isolated trend, either: business leaders across Portugal praise developers for choosing sustainable materials. In a report by Newsweek, Jorge Portugal, the General Manager of COTEC Portugal, said, “There is a conscious effort in reusing raw materials and being efficient in the way raw materials are explored. This is also tied to the design of products for use over a long period of time and to become smarter in terms of maintenance and lifecycle.”
Portuguese Developments Prioritize Active Lifestyles
Sustainable living is about much more than using eco-friendly building materials. For Luis Horta e Costa, it’s about encouraging an active lifestyle that minimizes the creation of additional carbon. “We care a lot about the environment and mobility,” he says.
His company, Square View, is planning a project in Melides that uses careful design to encourage walking and biking as viable alternatives to driving. “Melides is a very nice, small Alentejo village. It’s ten minutes away from the sea. We’re going to build a small village,” Luis Horta e Costa says, “It’s a project that is made not for billionaires, but for normal people that can afford a second small house. In those projects we always have a place for surfboards and bicycles. And it’s a very, very sustainable project.”
More real estate firms are using clever human design to encourage eco-friendly living. By designing homes that support walking and biking, developers make it much easier for tenants to choose more sustainable options over driving a car.
Investors Demand Sustainable Projects
Everyday renters care about sustainability, which has an impact on market demand. As a result, Portuguese real estate investors also believe it’s important for developers to build eco-friendly buildings. In fact, according to a report by CBRE, 54% of investors want to invest in companies that focus on eco-friendly solutions.
With greater financial support for sustainability from customers, investors, and developers, Portugal shows it’s possible to build sustainable communities without disrupting the country’s natural beauty. Cristina Arouca, the Director of Research at CBRE, believes more research is required, but Portugal has a promising future thanks to its sustainability initiatives.
“The consideration drawn from [our] studies will help corporate real estate leaders discover opportunities to move towards a more sustainable future. These opportunities exist at each of a property’s life stages, and can only be optimally achieved when coordinated across a broad spectrum of all stakeholders,” she concludes.
