Economic impact of Polis project may be too early to ascertain

One way the Polis project successfully valorized the river - and the land economy - is evident in the city’s skyline, punctuated by construction cranes and half-built luxury residential towers. In anticipation of rising real estate values, the developer community engaged in a frenzy of land speculation and construction of high-rise luxury apartment buildings, resulting in an estimated 30% increase in the supply of housing units. 

All of the stakeholders I interviewed voiced displeasure at the rate of construction the project has apparently caused, citing the resulting problems of urban sprawl, increased demands on transportation and other infrastructure, and increased development pressure on greenfields and the destruction of open space. The Almedina residential project adjacent to Parque Verde exceeded the height requirement permitted in the Plano Direito de Municipal (PDM), and construction is at a standstill while the case is being negotiated.

Some blame the lack of strategic planning. The PDM of Coimbra, equivalent to the General Plan, has not been updated since 1994. The new PDM, currently in progress, was commissioned to a consulting company also owned by one of the largest landowners in Coimbra. The company’s owner, however, publicly denies the potential conflict of interest this arrangement may cause. One stakeholder I interviewed suggested that the existing PDM was probably not respected and too many building permits were issued. 

While development is perceived as necessary as Coimbra has lagged in image behind nearby Aveiro, the type of aggressive residential development the Polis project inadvertently encouraged lacks strategy and purpose and goes against the historical image of Coimbra as a university city. The additional units represent an oversupply of housing for a city whose population has remained stable at 100,000 over the last 10 years. The large student population also means roughly a 50% turnover in the population each year. New construction is occurring outside of the main historical core, raising the question of who the units are being built for. 

Further, despite a glut in housing supply, the prices of housing units have not gone down. Without a concerted effort to develop Coimbra economically, it is difficult to attract new residents. Despite the prolific university talent, Coimbra has not been attractive for businesses and private economic investment. The stakeholders I interviewed did not perceive the Polis project itself as having attracted new economic investment other than in construction, although its impacts may well change over time.