MdG Eco Resort: MdG Sale 16/05/2023 EN

After the failed sale in April 2022,

I took the property off the market throughout the summer until September 1st, 2022, when it became available again through various agencies.

From September 1st to October 8th, I received 9 visits, and then the market plummeted. Throughout the winter, I didn't receive any calls or visits. Many real estate agents in the region confirmed that the demand disappeared during this winter. The reasons are known: inflation, war, increased costs of energy, transportation, and materials, the decline of cryptocurrencies, rise in interest rates, and the fall of some banks, etc. As a result, I reduced my asking price from €2,100,000 to €1,900,000 (not negotiable) at the beginning of the year.

However, a few weeks ago, the situation regained some momentum, and I received 3 visits with another one scheduled.

In the Municipality of Grândola, there are 87 tourism projects that filed an application for “hotel rural” with the CMG before June 3rd, 2022, awaiting licensing. Only these projects will be considered, in chronological order of submission, to receive the license until the remaining available tourist beds, which are still being calculated, are exhausted.

Tourism Developments under review in chronological order of submission before 03-06-2022. Vale Martim Afonso Sul has an entry number of 57 out of a total of 87.

Recently, a new Municipal Master Plan (PDM) came into effect, which is much more restrictive than the previous one. However, the 87 projects in question will be evaluated according to the rules of the expired PDM.

The lifting of the PDM suspension and the resumption of activities were expected to take place between this month of March and summer, but it has not happened yet, and everyone is still waiting.

(Update 24 05 2024) I was informed that: the PDM suspension is on a year-base and has to be renewed for another year, which is twice the case already, and no more terms are available, at the end of this year, when it will expire, they will proceed to check the applications of the licenses and issue approval, or not. The process is expected to be lengthy due to understaffing at the CMG. When I receive the license, the asking price will increase to €2,900,000.

Conditions are subject to be rewed at the time of signing the deed.

My plot of land has a house, where I currently live, with an area of 124m2 consisting of two bedrooms and two bathrooms.

It is still possible to build an additional 376m2 until reaching the maximum limit of 500m2.

For another project, I have designed pre-fabricated suites of 36m2 each, including a bedroom, bathroom, kitchen with a pantry, dining area, and living room. Please see the attached photos below:

By constructing 10 of these units, totaling 360 m2, we would still have 16 m2 remaining out of the 376 m2 that can still be developed.

These 10 suites, combined with the existing house of 124m2 with two bedrooms and bathrooms,

and the 60m2 suite in the existing metal structure, currently used as agricultural support,

would make a total of 13 suites. These can be managed with a simple Local Accommodation (AL) license since, officially, it would be considered a single dwelling that can have different modules with a maximum distance of 10 meters between each other.

"It is the only way to bypass the temporary halt on issuing licenses for tourist hospitality projects by the CMG (Municipality of Grândola)."

The new hotel "Vermelho" by Christian Louboutin in Melides has precisely 13 suites. The fact that all the units are self-sufficient with their own kitchens eliminates the need for organizing and providing catering services.

Indeed, this is a viable option that should be communicated to potential buyers who are looking for land for the development of a tourism-related business. The fact that the property already has an existing house, along with the possibility of constructing additional self-catering suites, makes it an attractive opportunity for those interested in the tourism industry.

Regarding the price, I have already explained the market situation in general and my price reduction following the decrease in demand. In my latest market research conducted on October 22nd, I've selected 149 land plots from 7 different agencies. Among these, there were 78 rustic plots without any existing structures or building rights, 68 with ruins or existing structures that allow for residential construction up to 500m2, and 7 plots with approved tourism projects. All of them require starting construction from scratch and do not have habitable houses.

The average price per hectare requested is €268,610.

As you can see in the picture below:

I have assigned a value to my land as follows:

€155,000/ha x 8.2ha = €1,269,187,

then the habitable house, including all of the infrastructure:

124m2 x €3,636/m2 = €450.814,

and finally, the agricultural support structure:

60m2 x €500/m2 = €30,000,

totaling exactly €1,750,000 as asking price.

It is easy to see how my price compares to the average market value.

Below are some examples of reference properties for sale in the local market:

This property, with an area of 6,37 Ha, is listed at €164.705/Ha, which is slightly lower than my asking price of €175.000/Ha. This is because my land is fully infrastructured, well-maintained, and already has a habitable house, unlike the land being considered here.

In the case of "La Reserve-Carvalhal", here above, they are asking €10,768 per square meter of built area, considering that the land is only 1,381m2.

Among all the tourism developments built or under construction in the Municipality of Grândola, La Reserve stands out as having the highest population density.

Below is the comparison between the lots of "La Reserve-Carvalhal" and my property:

What follows is another example that I consider to be the least attractive among the many existing projects, as can be seen from the photos, featuring very uninspiring architecture