“Sustainability is central” to every decision made at Arcaya
The Arcaya residential development, born in an “abandoned forest” in the Quinta do Morgadinho estate in the Algarve’s Vilamoura resort town, has been praised as a “model of sustainable construction” by Portugal’s Minister of Environment.
Maria da Graça Carvalho spoke highly of Arcaya after visiting the development on Friday (January 17), praising it for the way it handles matters such as “energy consumption, water savings, respect for nature and biodiversity”.
Arcaya – a €700 million real estate project which began construction in August 2023 – is led by Portuguese asset manager Bondstone, which describes it as “a sustainable transformation in the heart of the Algarve. With a focus on eco-friendly construction and practices, it aims to create the ultimate year-round living destination,” says Arcaya’s website.
The project’s goal is set to the example for “sustainable real estate development,” said Paulo Loureiro, CEO of Bondstone.
“Sustainability is central to every decision we make,” Loureiro told reporters during the minister’s visit.
Water sustainability is a key part of the project’s ethos. Two seasonal watercourses have been integrated into a system designed to capture and reuse rainwater, helping reduce reliance on municipal water supplies. Meanwhile, hydroboxes installed in secondary roads store rainwater underground, ensuring soil hydration and promoting vegetation health, explained Bondstone COO, Frederico Pedro Nunes.
The project employs a ‘sponge city’ concept, preparing the land to absorb rainwater and use it efficiently.
All villas are equipped with dual reservoirs: a 3-cubic-metre tank for treated greywater and a 10-cubic-meter tank for rainwater, used primarily for irrigation. This design minimises dependency on external water sources, he explained.
Reforestation is another cornerstone of the project. Previously an untended forest, the site has undergone ecological restoration, with invasive species removed and native ones replanted,” said Nunes, adding that Arcaya plans to increase tree coverage by 30%, preserving 2,225 existing trees and planting 1,856 new ones. He also highlighted that the optimised irrigation system uses 40% less water compared to traditional drip irrigation.
Despite its focus on sustainability, Arcaya “is also a real estate project. The challenge was applying all these sustainability practices and making high-quality houses,” said the COO. Natural ventilation, double-height interiors, green roofs, pergolas and solar panels were all chosen to respect the development’s core beliefs. Meanwhile, house structures are made from wood instead of concrete, helping “significantly reduce” the development’s carbon footprint.
Some houses were prefabricated in a “controlled industrial environment,” helping reduce the usual impact that construction would have had on the site. The villas are also highly customisable, offering two floors, up to four bedrooms, and an area of 240 square meters. Outdoor spaces extend the living areas with private gardens, terraces, and pools.
“Arcaya has been an opportunity to underline the importance of collaborations between the private and public sectors in the promotion of more sustainable construction practices in the Algarve’s real estate development, a process which we want to lead,” added Paulo Loureiro, who is also vice-president of the general assembly of the Portuguese Association of Real Estate Developers and Investors (APPII). “Innovation and respect for the environment can co-exist. I hope this serves as inspiration for other similar projects in the Algarve and throughout Portugal.”
Loulé mayor Vítor Aleixo also spoke highly of the project, stressing the importance of developments such as Arcaya in a region blighted by the effects of climate change. Aleixo also advocated for replicating these principles across several economic segments to ensure broader accessibility.
Aside from housing, Arcaya will also feature a clubhouse with a gym, a wellness centre, restaurant, co-working space, concierge, as well as a grocery store, laundry room and a bike-renting service.
The first villas are due to complete construction from 2026 onwards.
More information about Arcaya can be found on the development’s website.
