Stability is important for gaining the trust of investors.

A Level Constellation (LC), a Chinese investment company, arrived in Portugal in 2014 and has since invested in several properties in Lisbon. However, with the onset of the pandemic and the worsening housing crisis due to rising inflation and corresponding interest rate hikes, the national market has faced a widespread issue of a shortage of residential properties for both purchase and rent. Several players in the industry have long been calling for an increase in housing supply, but the national context makes it difficult to achieve this goal at various levels, and constant changes in legislation leave their mark. "A country with unstable politics will have great difficulties in gaining the trust of investors," warns Qinglei Dai, vice president and co-founder of a construction company, in an interview with idealista/news.

Among the various projects implemented by LC, we can mention Park Avenue, Ouro Grand, Off Liberdade, and recently, Clássica. There is also another mega-project in the Azores that has yet to see the light of day - the "complete restoration" of the former Monte Palace hotel, which is set to become a "five-star establishment that meets the growing demand for tourism in this region," as reported by the responsible official.

Despite all this, LC is confident that it will remain firmly invested in Portugal. Cinley Dai confirms that the company "is considering projects outside the center of Lisbon" and adds that they have recently created an "investment fund" through which they plan to "invest another 30 million euros in the coming years" in real estate. He asserts that private investors can be part of the solution to the housing crisis in Portugal, offering the executive authority of António Costa the following idea: "Regarding affordable housing for purchase and rent, I believe that suitable solutions can be found, within which foreign funds can be used for the benefit of the local population. For example, the government could invite Golden Visa holders to invest in housing funds that address the housing issues for the local population."

How do you assess LC's activities in Portugal? Since 2014, we have invested in a number of renovation projects in the center of Lisbon. We take pride in the fact that all our projects have been winners or nominees for national awards for their outstanding quality. LC is already recognized by industry peers as a market leader with high standards and a good reputation.

How much has LC already invested in Portugal and in how many projects? How much is planned to be invested in the coming years? The total investment has exceeded 50 million euros in more than 10 projects. We recently established an investment fund through which we plan to invest an additional 30 million euros in the coming years.

What projects are you planning outside of Lisbon, apart from the former Monte Palace hotel in the Azores? In fact, we are considering projects beyond the center of Lisbon. We are always open to opportunities that align with our goals and values.

What stage is the Monte Palace Hotel project at? When will it be implemented? We are currently awaiting approval of the Preliminary Information Request (PIP) from the municipality of Ponta Delgada, as well as the announcement of the 2030 program [Azores 2030], in order to finalize the business plan. We aim to fully restore the hotel as a five-star establishment that meets the growing demand for tourism in this region.

Do residential projects developed/promoted by LC take into account the most in-demand requirements after the pandemic (larger balconies, office spaces, more green areas, etc.)? From the very first project, Park Avenue on Rodrigo da Fonseca Street, LC has been making efforts to create open spaces in residential units. We notice that the market is indeed paying more attention to balconies and terraces with the onset of the pandemic.

Sustainability is a relevant topic. Is it also an important topic for LC? Are you building sustainable homes in Portugal? We firmly believe in sustainability in housing construction, especially in the structural safety of buildings.

There is a lot of talk about the need to increase the supply of housing in Portugal, especially for the middle class of Portuguese people. Is this a path that should be taken in the country? What role can LC play in this equality? Regarding the middle-class market in Portugal, we recognize the following facts: there is a high demand for housing for the middle class; the income level of the middle class has remained stable in recent years, which means there is very limited room for price growth in middle-class housing; the cost of construction has significantly increased, rising by 30% since 2020. Based on these observations, we believe that the solution should focus on controlling the costs of purchasing land, so it is necessary to seek affordable land in less developed areas of the city. However, such a solution largely depends on the availability of efficient public transport networks. Therefore, the government should deepen its investments in public transport infrastructure, such as subways and buses, and parking at public transport terminals. Such conditions will enhance the attractiveness of housing in less developed urban areas and allow private investors to develop appropriate business plans. The government seems to be paying more attention to increasing the supply of affordable housing, both for purchase and for rent, through the Mais Habitação program. What is your opinion on the program, particularly regarding the cessation of issuing golden visas? I firmly believe that whatever policy is announced by the government, greater attention must be paid to the stability and continuity of the policy to gain the trust of investors and ensure long-term investments. A country with unstable policies will have great difficulties in gaining the trust of investors. As for affordable housing for purchase and rent, I believe that suitable solutions can be found within which foreign funds can be used for the benefit of the local population. For example, the government could invite Golden Visa holders to invest in housing funds that address housing issues for the local population. Could the emergence of more housing cooperatives help solve the housing crisis in Portugal? Can LC join such a business model? We are interested in exploring solutions. We believe in win-win solutions where investment requirements align with local market demand. Is Portugal still attractive for real estate investments for both construction companies and investors buying property as an investment/return or for living in the country? Yes, Portugal will remain attractive for real estate investments. There is always a high demand for real estate in Portugal. Being in the Eurozone but not being in political conflicts is also an important factor. And, of course, there are obvious features that make Portugal special, such as its culture and climate, to mention a few.