Airbnb Report Claims Lisbon Prioritizes Hotels Over Housing
A study promoted by the accommodation platform Airbnb and conducted by the consultancy Neoturis indicates that Lisbon is prioritizing hotel construction over residential housing. The report, released this week, calls for the implementation of “fair, proportional, and non-discriminatory rules” from local authorities, arguing that current policies favor traditional tourism operators. According to the study, the Portuguese capital is expected to see the development of almost 500,000 square meters of large-scale hotel projects in the next five years, compared to just 200,000 square meters of new residential housing. This means that tourism-related construction will occupy an area 2.5 times larger than that dedicated to homes, a situation that Airbnb describes as a significant imbalance reflecting local policies that overlook the housing demand in key urban areas.
The document highlights that this development trend occurs in a city with nearly 50,000 vacant homes, while only 2,352 new housing units were added to the market between 2015 and 2023. The study also notes that despite restrictions imposed on the Alojamento Local (AL) sector in 2019, housing prices in Lisbon have continued to increase by more than 5% annually. For investors tracking these trends, our market trends news section provides regular updates. Jaime Rodríguez de Santiago, General Manager of Airbnb Marketing Services, SL, stated that “while hotels continue to expand without restrictions, competing for the same space that could be used for housing and contributing to over-tourism in urban centers, many families who share their homes and depend on the extra income from AL face significant obstacles.” He urged city officials to question why hotel projects are multiplying while local hosts struggle to compete and to adopt fair and consistent rules for all types of tourist accommodation.
Need Expert Guidance?
Get personalized insights from verified real estate professionals, lawyers, architects, and more.
In response to these findings, Airbnb has presented three key recommendations to Lisbon's policymakers. The first is a “Mandatory Residential Compensation,” which would require new hotel projects to provide an equivalent area for housing, either through direct integration of residential units or via compensation mechanisms that fund new home construction. The second recommendation, “Strategic Conversion,” encourages converting underutilized hotel assets into housing to immediately increase the housing supply. The final point, “Consistent and Coherent Rules,” calls for an end to what it terms the unjust penalization of local hosts by applying proportional, evidence-based rules to all tourist accommodation types. Navigating these regulations can be complex, and our guide to legal issues in Portuguese real estate can offer valuable context.
The report also references data from June, which revealed that over-tourism in European Union cities, including Lisbon, is primarily driven by hotels, which represent almost 80% of overnight stays in the EU for 2023 and 2024. The study concludes with a firm statement: “Cities need more homes - not more hotels.” This ongoing tension between tourism development and residential needs remains a central issue for the city's future planning and development strategies. Discover rental property opportunities and regulations at realestate-lisbon.com.