Portugal: Lisbon has implemented a ban on new short-term rental [alojamento local] licences across 19 neighbourhoods and eight parishes, including Alcântara, Estrela, Misericórdia, Santa Maria Maior, São Vicente, Santo António, Arroios, and Avenidas Novas.
The decision aims to address concerns over housing shortages and rising property prices attributed to the proliferation of short-term rentals. The move reflects ongoing efforts to balance tourism growth with the availability of affordable housing for residents.
Previously, activists in Lisbon had called for a referendum to ban holiday rentals in residential blocks, highlighting the impact on local communities and housing affordability.
In Santa Maria Maior, 68.8 per cent of all housing is reportedly given over to AL. These measures are part of broader strategies to regulate the short-term rental market and ensure sustainable urban development in Lisbon.
Lisbon City Council has devised a new map which is open to public consultation until 15 April. The map highlights the ratio of the number of existing AL in relation to family homes in each parish.
Where this exceeds five per cent, no new AL establishments will be permitted. In areas where the ratio stands between 2.5 per cent and five per cent, a limited number of new establishments will be allowed on a case-to-case basis.
Areas such as Bairro Alto, Madragoa, Castelo, Alfama, Mouraria, Colina de Santana, Baixa, Avenida da Liberdade, Avenida Almirante Reis have a ratio of 20 per cent, therefore new developments in these areas are off limits.
Other areas which may be subject to restrictions include Belém, Campo de Ourique, Penha de França, Parque das Nações, Ajuda and Campolide.
Other areas of Lisbon which the council is keeping an eye on include Arreeiro, Avenidas Novas, Arco do Cego, and Bairro dos Aliados. Zones further away from the historic centre of Lisbon including Olivais, Encarnação, and Alto do Chapeleiro in Santa Clara are being monitored.
The decision follows Portugal’s Constitutional Court’s recent decision to rule against a proposal for a complete referendum in the capital city.
