Lisbon eases short-term rental limits to tackle housing and tourism pressures
Lisbon has lifted its restrictions on short-term rentals, also known as news, after previous measures failed to ease housing costs. The city’s new framework, as reported by nypost, will allow homeowners to operate within set limits while giving local authorities control over rental thresholds. This change comes as rental and hotel prices in the capital have continued to climb sharply in recent years. The previous rules, introduced in 2019, aimed to curb rising housing costs by limiting short-term lets. Despite these efforts, average house prices in Lisbon’s metropolitan area nearly doubled over the same period. Rental prices also kept rising, while hotel costs jumped by around 30%. Under the revised system, short-term rentals can now make up to 10% of local housing stock in designated areas. Municipalities will decide their own thresholds, ensuring flexibility in balancing housing supply with tourism demand. The new approach is set to take effect once it receives final legislative approval. Airbnb has welcomed the decision, stating it supports local residents and responsible hosting. However, as of now, no specific neighbourhoods in Lisbon have announced plans to implement the new regulations once they are approved. The updated framework shifts control to local authorities while allowing more short-term rentals. It remains to be seen whether this will stabilise housing costs or further increase tourism pressure. The final legislative approval will determine when the new rules come into force.
