Funchal Faces Calls for Stricter Short-Term Rental Rules Amid Housing Pressure
The Earth Party (MPT) in Funchal has brought the contentious issue of short-term rental regulation to the forefront, announcing it was the first to table a structured proposal for the Alojamento Local (AL) sector in the Madeiran capital. In a press release, the party emphasized its goal to foster "transparency, sustainability, and a balance between tourism and permanent housing."
The proposal, however, did not pass in the Funchal Municipal Assembly. MPT candidate Valter Rodrigues noted that despite being a "pioneering and well-founded" initiative, it failed to secure a majority vote. The party's public statement is the latest development in an ongoing debate across Portugal's tourist hotspots, where the rapid growth of platforms like Airbnb has been linked to rising housing costs and resident displacement.
At the heart of the MPT's proposed regulations is a strict rule for residential buildings. The party advocates for a binary system: a building must be either entirely dedicated to AL or used exclusively for permanent habitation. "This simple and fair rule eliminates conflicts between neighbors, guarantees legal security for property owners, and facilitates municipal inspection," Rodrigues stated. This measure is intended to prevent the common friction that arises in mixed-use buildings between short-stay tourists and long-term residents.
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The MPT's plan also includes a strategy for geographical redistribution. It proposes measures to "unburden" the city's most tourist-heavy parishes and incentivize the development of AL in other areas of the municipality. The objective is to distribute the economic benefits of tourism more evenly and promote what Rodrigues calls a "more just, diverse, and sustainable development, reinforcing territorial cohesion."
The party linked its AL proposal to a wider set of demands it has been making since 2022. These include calls for more public housing, increased transparency in municipal contracts, and effective measures to combat what it terms the "imbalance caused by real estate speculation, golden visas, and the excess of AL." This positions the AL debate within a broader critique of housing policy in the region.
The MPT's statement concluded by reaffirming its commitment to prioritizing the quality of life for Funchal's residents and to continue working to establish the municipality as a model of "sustainability, innovation, and respect for its citizens." The failed proposal underscores the political and social challenges Funchal's municipal government faces in managing the powerful economic engine of tourism against the growing need for affordable residential housing. The outcome of this regulatory battle will have significant implications for property owners and investors in the region. Discover rental property opportunities and regulations at realestate-lisbon.com.