Lisbon house prices fall by 9% after suspending tourist rental licenses

Written By Lara Silva

At the end of 2018, the municipality of Lisbon suspended any new tourist rental licenses (AL) in areas where the density of tourist rentals was above 25%. The next year, this measure was extended to nearby areas. The impact on the real estate market in Lisbon was undeniable. According to a study by the Francisco Manuel dos Santos Foundation, house prices fell by 9% and the number of houses sold fell by 20% in these areas between the announcement of the measure to its implementation at the end of 2019.

In the last decade, the increase in tourist rentals such as Airbnbs in Lisbon, particularly in the historical center, has led to an increase in the price of renting and purchasing a home. The researchers are certain that the suspension of tourist rental licenses led to a decrease in housing prices in the areas.

The suspension of tourists licenses occurred in Bairro Alto, Madragoa, Castelo, Alfama, Mouraria, Colina de Santana e Graça. Mais tarde, também na Baixa, Avenida da Liberdade e Avenida Almirante. No new tourist rental licenses were provided in these areas.

Recently, the municipality of Lisbon has approved new restrictions for 14 parishes in Lisbon, including Belem, Campo de Ourique, and Estrela.

The foundation that conducted the study found that although the results show that tourist rentals are driving up housing prices, this alone does not explain the phenomenon. Along with an increase in foreign investment in Lisbon real estate, there are multiple variables resulting in a boom in house prices, according to the study.

Member of Parliament for the Left Bloc (BE), Pedro Filipe Soares says in a tweet below, “There are no doubts: tourist rentals are a threat to the right to housing. Those who want a market without regulation leave people without homes to live in”.

Guide to Renting an Apartment in Lisbon

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