Lisbon Mayoral Candidate Proposes Ban on New Short-Term Rentals and Hotels, Pledges 4,500 Homes
Alexandra Leitão, the head of the progressive 'Viver Lisboa' coalition, has announced a housing policy platform for the upcoming Lisbon municipal elections that could significantly reshape the city's real estate market. The announcement, a central plank of her campaign, includes a pledge to construct 4,500 new municipal housing units by 2029 and, more controversially, to halt the issuance of new licenses for short-term rentals (Alojamento Local) and hotels in high-pressure city zones.
The policy objective, as outlined in the electoral program, is to directly combat Lisbon's severe housing affordability crisis. The proposed construction of 4,500 homes represents a major government-led effort to increase the supply of affordable housing stock. This initiative targets the 'missing middle'—residents who earn too much for social housing but are priced out of the private market. The implementation strategy would involve leveraging municipal land and potentially entering into public-private partnerships to expedite construction.
The most impactful proposal for investors is the proposed moratorium on new tourism-related accommodations. Leitão's plan calls for a complete prohibition of new Alojamento Local licenses within residential buildings across the city. This measure aims to return housing units from the volatile short-term rental market to the long-term rental pool available to residents. Additionally, the plan includes a suspension of new hotel development licenses in areas already saturated with tourism. This reflects a strategic pivot from promoting tourism growth to preserving neighborhood character and housing availability.
The budget allocation for the 4,500 new homes was not specified in the initial announcement, but it would require a substantial multi-year investment from the municipal budget, likely supplemented by funding from the central government and potentially EU programs. The policy is a direct response to years of public debate and resident complaints about the negative impacts of 'touristification' on the city's social fabric and cost of living. The 'Viver Lisboa' coalition, comprising the Socialist Party, Livre, Bloco de Esquerda, and PAN, has unified around this housing-first agenda.
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Political support for these measures is strong within the coalition, but they are expected to face significant opposition from business and tourism associations. The hotel and short-term rental industries are major contributors to Lisbon's economy, and representatives have previously warned that such restrictions could stifle investment and job creation. A spokesperson for a Lisbon hospitality association stated, 'While we understand the housing challenge, a blanket ban is a blunt instrument that fails to consider the economic benefits tourism brings. We need a balanced approach, not a moratorium.'
The proposed policies will be subject to intense political debate ahead of the October 12th election. If Leitão's coalition is successful, the implementation of these measures would be monitored closely. The evaluation framework would likely focus on metrics such as the number of new homes delivered, changes in average rental prices in the long-term market, and the economic impact on the tourism sector. The future legislative agenda for Lisbon's housing market hangs in the balance, with these proposals representing one of the most significant policy shifts in recent years.
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