Lisbon Municipality Prioritizing Hotel Construction Over Residential Housing, Airbnb-Commissioned Study Claims
The Lisbon municipality's urban development strategy is under scrutiny following the release of a study suggesting a significant policy bias towards hotel construction at the expense of residential housing. The report, commissioned by the accommodation platform Airbnb and conducted by the tourism consultancy Neoturis, announced that new large-scale hotel projects are slated to occupy nearly 500,000 square meters in Lisbon over the next five years. This figure is two and a half times the 200,000 square meters designated for new residential housing construction during the same period, a disparity that Airbnb argues reflects a critical imbalance in local policy.
The policy objectives behind this development trend are being questioned, as Lisbon continues to grapple with a widely reported housing crisis. Airbnb has publicly called for the implementation of “fair, proportional, and non-discriminatory” regulations to create a more balanced approach to urban growth. The platform contends that current policies ignore the high demand for housing in the city's main urban areas while facilitating the expansion of the hotel sector. This debate touches on complex regulatory and legal frameworks governing land use in the capital.
As part of its campaign for policy reform, Airbnb has outlined a three-pronged implementation strategy for Lisbon's political leaders. The first proposal is a 'Mandatory Residential Compensation' mechanism. This would legally require developers of new hotel projects to provide an equivalent amount of space for residential use. This compensation could be delivered either through the direct integration of housing units within the hotel developments or via financial contributions to a municipal fund for new home construction. This policy aims to directly tie tourism growth to housing supply.
The second recommendation targets the existing building stock, proposing a 'Strategic Conversion' initiative. This would create incentives for property owners to convert underutilized or struggling hotel assets into residential apartments, providing a faster route to increasing the city's housing inventory. The third and final point calls for 'Consistent and Coherent Rules' for all tourist accommodation providers. Airbnb argues that local hosts of short-term rentals (Alojamento Local) are being unfairly penalized with restrictive regulations that are not applied to the expanding hotel industry.
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The affected population groups include both local residents seeking affordable housing and the small-scale landlords who participate in the short-term rental market. Jaime Rodríguez de Santiago, General Manager of Airbnb Marketing Services, SL, articulated this concern in a public statement. “While hotels continue to expand without restrictions... many families who share their homes and depend on the extra income from AL face significant obstacles,” he said. “Mayors should question the reasons why hotel projects are multiplying while local hosts struggle to compete.”
Stakeholder consultation on this issue is expected to intensify. The Neoturis study provides concrete data that will likely be used by housing advocates and opponents of unchecked tourism growth. The Lisbon municipality has not yet issued a formal response to the study's findings or Airbnb's recommendations. The political support for a policy shift remains uncertain, as the economic benefits of tourism are a major consideration for the city's administration. Investors and developers will be closely watching for any signals of a change in the city's strategic priorities. For those considering property acquisition, this regulatory climate is a key factor.
The expected economic and social impact of the current policy trajectory is at the center of the debate. Critics argue that prioritizing hotels over housing will further inflate property values, displace long-term residents, and lead to 'over-tourism' in central neighborhoods. Proponents of the current approach may point to job creation and economic growth driven by the tourism sector. The city's future legislative agenda on housing and urban planning will be a critical indicator of its long-term vision. Understand policy impacts on your Portugal property plans at realestate-lisbon.com.