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Braga’s Plug-and-Play Homes Could Ease Portugal’s Rental Squeeze

Economy,  Tech
By The Portugal Post, The Portugal Post
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Foreign residents watching Portugal’s housing squeeze from Lisbon’s miradouros or the Algarve’s clifftops may soon notice an unfamiliar sight on building sites: entire apartments arriving on flat-bed trucks like giant pieces of Lego, then clicking together in days rather than months. The quiet revolution behind those plug-and-play homes is being led from Braga, where family-owned dstgroup is betting that industrialized, low-carbon construction can do for real estate what the car-assembly line once did for mobility.

Why modular matters for Portugal’s expats

Walk-in ready flats are scarce and rents keep climbing; meanwhile, EU climate law is tightening the screws on traditional bricks-and-mortar. For newcomers and long-term expatriates alike, dstgroup’s pivot to factory-built housing could translate into faster delivery, better energy ratings, and—eventually—more competitive prices. Government ministers increasingly describe modular units as a lifeline for Portugal’s Affordable Housing Program, while property agents whisper that overseas buyers love the idea of furnishings and heat-pump systems pre-installed before they even book a flight.

From gravel pits to global ambition

The Braga firm began in the 1940s hauling aggregate from the River Cávado; eight decades later it posts €600 M in annual turnover and holds stakes in telecoms, renewables, real estate, and venture capital. Engineering still accounts for roughly 80 % of revenue, but chairman José Teixeira insists the old site-built model has “hit a productivity wall.” That sense of urgency pushed dstgroup to front-run the government’s R2UTechnologies Mobilizing Agenda, a €94.5 M consortium that ropes in 48 partners—from architects to robotics labs—with the sole aim of dragging Portuguese construction into the Industry 4.0 era.

Inside the Zethaus factory floor

The group’s most visible weapon is Zethaus, a spin-out launched in late 2024 that claims it can cut onsite labour by up to 70 %. In a cavernous plant outside Figueira da Foz—built for €25 M and scheduled to switch on early next year—robots pour reinforced-concrete beams, humans fit wiring harnesses, and quality inspectors wield laser scanners instead of clipboards. Finished “rooms” are loaded onto lorries and driven to plot, where they lock onto steel podiums in less than a week. A 4,000 m² showpiece erected in Braga — designed with the Norman Foster Foundation — has already convinced several northern municipalities to reserve slots in the queue. Zethaus expects 60-70 % of output to ship abroad, largely to northern Europe where labour costs dwarf Portugal’s.

Economic ripple: jobs, exports, and the PRR

Modular zeal is not just a tech story; it is a jobs program. The R2UTechnologies agenda sits inside Portugal’s €16.6 B Recovery and Resilience Plan (PRR), which Brussels helps finance. Collectively, the PRR’s Mobilizing Agendas target the creation of 18,000 new positions by 2026; dstgroup’s share includes around 800 roles tied to a forthcoming Living Lab campus—100 smart pods doubling as student digs, micro-hotels, and senior housing prototypes. For foreign entrepreneurs seeking residence through the new “Tech Visa” scheme, these hubs may open unexpected doors: Zethaus wants allied start-ups to test sensors, Internet-of-Things dashboards, and circular-economy materials inside the campus in exchange for pilot data.

Counting carbon, staying legal

Europe’s freshly minted Energy Performance of Buildings Directive forces every member state to push new public structures to “zero-emission” standards by 2028 and all new builds by 2030. Although dstgroup has yet to publish group-wide 2050 targets, it is installing 30 MW of solar panels across its quarries and claims to have already avoided “hundreds of tonnes” of CO₂. Subsidiary dstelecom went a step further, securing Science Based Targets initiative validation for carbon neutrality by 2030. For expats buying or renting, the practical upside is straightforward: modular shells leave fewer thermal bridges, come with pre-fitted PV arrays, and make it easier to certify for the soon-to-be-mandatory “A” energy label that shaves property tax and cuts utility bills.

What it means for your next home or investment

Industrialized construction should shorten permitting timelines, because every component is stamped, serial-numbered, and digitally modelled before it leaves the factory. Bank appraisers also like the predictability of a fixed bill of materials—good news for international buyers who need mortgages from Portuguese lenders. Rental investors, on the other hand, will care that modular buildings are designed for easy re-configuration: walls can shift, balconies bolt on, and façades clip off for end-of-life recycling, extending asset value. And because Zethaus units stack like containers, they can be relocated—a hedge if a long-term tenant law ever crimps yields in one city.

Looking beyond Portugal’s borders

Dstgroup cut its teeth abroad by erecting hospitals in Luanda and telecom towers in Senegal; now Zethaus is eyeing Nordic social-housing tenders and British build-to-rent schemes that prize speed and net-zero certificates. Management says negotiations are underway with two African universities to deliver student villages using the plug-and-play model, a move that would keep factory lines humming during Portugal’s slower winter months. If those deals close, foreign talent considering a move to Portugal could find themselves working for a Braga-headquartered company while installing homes in Oslo or Nairobi—proof that industrialized construction, once a domestic experiment, has become an exportable Portuguese specialty.

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Happy American expats enjoying the vibrant atmosphere of Lisbon, Portugal, with historic buildings and the Tagus River in the background, symbolizing the allure of Portugal's property market