Strategic Investment Opportunity: A Building of Character with a Premium Rehabilitation Project in the Heart of Setúbal's ARU ZoneIntroduction: Where History Meets Future PotentialIn the heart of the vibrant and authentic city of Setúbal, on the highly sought-after Rua Camilo Castelo Branco, stands an investment opportunity as rare as it is valuable. This is not merely a building, but a blank canvas offered to visionary investors; a project where the heaviest lifting has already been done, giving way to the most exciting phase: value creation. This urban building, destined for a prestigious rehabilitation, represents the quintessence of intelligent real estate investment: a prime location, an already secured structure, a modern architectural project already submitted, and, above all, access to exceptional tax benefits thanks to its inclusion in an Urban Rehabilitation Area (ARU). This is an invitation to shape the future of housing in Setúbal while making an investment with outstanding potential for return.Setúbal: A Hub of Growth Between the Mountains and the SeaTo understand the full value of this property, it is imperative to understand the dynamism of its location. Setúbal is no longer just a historic port city; it has become a coveted destination, a pole of attraction for residents, tourists, and investors, both national and international. Bathed by the Sado Estuary, famous for its resident dolphin colony, and backed by the Arrábida Natural Park with its paradise-like beaches, the city offers an unparalleled quality of life less than an hour from Lisbon.The historic center, where Rua Camilo Castelo Branco is located, is a charming maze of cobbled streets, lively squares, and colorful buildings. This is where the heart of the city beats, just steps from the famous Mercado do Livramento, considered one of the most beautiful markets in the world, renowned restaurants serving the famous "choco frito" (fried cuttlefish), art galleries, traditional shops, and the magnificent Luísa Todi Avenue. To live here is to choose a lifestyle where everything is within walking distance, where Portuguese authenticity blends with a growing cosmopolitan energy.Investing in Setúbal today is betting on a promising future. The city benefits from continuous investment in infrastructure, tourism, and culture, resulting in a steady appreciation of its real estate. Rental demand, for both long-term and tourism, is booming, offering very attractive rental yield prospects for the future apartments in this project.The Property: A Solid Structure, A Clear VisionWhat immediately distinguishes this offer is the advanced state of the project. Unlike many properties in need of rehabilitation where everything remains to be done, here, the most complex and uncertain steps are already behind you.

Structural Intervention Completed: The building's interior has been completely demolished. This action, far from being a constraint, is a major asset. It offers complete freedom to reconfigure the interior spaces according to the submitted project, without the unpleasant surprises often discovered during demolition. It is a blank slate, ready to be written.


Façade Preserved and Secured: The historic façade, an essential element of character, has been meticulously preserved and is currently shored up by a robust metal structure. This professional approach guarantees two fundamental advantages. Firstly, it preserves the soul and architectural charm of the building, integrating it perfectly into the street's urban landscape. Secondly, and this is a crucial point from an administrative and fiscal perspective, it qualifies the intervention as a rehabilitation/conservation, not a new construction. This status is the key to accessing the multiple benefits of the ARU zone.


The Architectural Project: A Union of Elegance and Functionality
A complete and well-thought-out architectural project was designed and submitted to the Setúbal City Council in September 2025. It is currently under review, meaning the approval process is already underway, representing a considerable saving of time and effort for the future owner. The project intelligently maximizes the building's potential to create three distinct residential units and a rare asset in the city center:


Basement with Parking for 3 Vehicles: This is undoubtedly one of the greatest luxuries in the historic center of Setúbal. Offering a secure, private parking space for each unit is a decisive selling point. This not only increases the comfort of future residents but also exponentially raises the rental and resale value of each apartment.


Two 2-Bedroom Apartments (T2): Designed for modern living, these two apartments will be perfect for young couples, small families, professionals, or for the high-yield rental market. One can envision open and bright living spaces, modern fully-equipped kitchens, high-quality finishes, and two comfortable bedrooms offering peace and privacy. These units will perfectly meet the strong demand for quality housing in the center.


One 3-Bedroom Duplex Apartment (T3): The crown jewel. This duplex apartment will offer an exceptional living experience, combining the volume and space of a house with the convenience of an apartment. The lower level could host a vast living area, kitchen, and a bedroom, while the upper floor could be a peaceful haven with two more bedrooms, including a spectacular master suite. The duplex will likely offer unique views over the rooftops of Setúbal, creating an exclusive and sought-after atmosphere. It is a prestigious residence intended for a discerning clientele.



The ARU Advantage: The Financial Leverage of Your InvestmentThe building's location in an Urban Rehabilitation Area (ARU) is a major financial catalyst. The Portuguese government, through this program, strongly encourages the renovation of historic centers by offering a set of extremely attractive tax incentives for developers and owners. For this project, this translates to:
Reduced VAT (IVA): Labor and material costs for the rehabilitation work will benefit from a reduced VAT rate of 6%, instead of the usual 23%. This massive saving on the construction budget has a direct and significant impact on the project's final profitability.
Exemption from Property Tax (IMI): Upon completion of the work, the units can benefit from an exemption from the Municipal Property Tax (IMI) for a period of several years, easing the operating costs for the owner or future buyers.
Exemption from Transfer Tax (IMT): The acquisition of the building for rehabilitation may be eligible for an exemption from the Property Transfer Tax (IMT), representing a substantial saving from the outset.
Income Tax (IRS) Benefits: Rental income generated by the apartments may be taxed at a reduced rate. Furthermore, in the event of a sale, capital gains may also benefit from a more favorable tax regime.
These benefits are not mere details; they are at the core of the investment strategy, allowing for cost optimization, improved cash flow, and maximized return on investment.A Transparent and Ready-to-Start InvestmentThe value proposition is clear and transparent. The asking price is not based on future speculation but on the tangible value already created. It reflects the initial acquisition cost of the property as well as the substantial investment already made, which includes:
Architectural and engineering studies.
The cost of developing and submitting the full project to the municipality.
The interior demolition work.
The design and installation of the façade's metal support structure.
The buyer is not purchasing a problem to be solved, but a solution in progress. You benefit from the expertise, time, and capital already invested, allowing you to focus on the construction and commercialization phase.Conclusion: An Invitation to Build the FutureThis building on Rua Camilo Castelo Branco is much more than just a property. It is a complete, de-risked investment opportunity with very high potential. It is the chance to own a piece of Setúbal's history and transform it into a symbol of modernity and comfort.Summary of Key Strengths:
Prime Location: In the heart of the historic center of Setúbal, a rapidly growing city.
Administratively "Turnkey" Project: Architectural project already submitted, saving months, if not years, of procedural steps.
Secured Structure: Demolition and shoring work already completed, offering a sound foundation and a blank canvas.
Exceptional Tax Benefits (ARU): Massive reduction in construction costs and future taxes.
High Value-Added Project: Creation of 3 modern residential units with the rare luxury of private parking.
High Return Potential: Strong rental demand and continuous capital appreciation in the region.
We invite you to seize this unique opportunity to actively participate in the renaissance of Setúbal. For savvy investors who recognize the value of a well-prepared project in a strategic location, the time to act is now.For more information, to review the complete architectural project file, or to arrange an on-site visit, please contact me directly. I will be delighted to guide you in discovering your next successful investment.
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