Regulation of Local Accommodation Did Not Halt Rising House Costs
The space occupied by local accommodation (AL) in Lisbon and Porto is not the primary factor impacting the scarcity of traditional housing, according to a study conducted by Neoturis for Airbnb. The analysis demonstrates that even after restrictions were imposed on the activity, house prices continued to accelerate. This indicates that other market factors, particularly the decline in new construction and overall growth in demand, have a more significant impact on property values.
"The continuous rise in prices, following the limitations on AL, proves that the regulation did not stop the market, because the problem is structural," Eduardo Abreu, a consultant at Neoturis, explained to Jornal de Notícias. This finding suggests that policy solutions focused solely on restricting short-term rentals may not effectively address the broader housing affordability issue. Investors should consider these structural factors when evaluating the market, a topic often covered in our Real Estate Market Insights Blog.
Abreu also highlighted a key finding from the research: the areas where AL has a smaller footprint are precisely the ones experiencing the most significant price increases. This counterintuitive result challenges the narrative that short-term rentals are the main cause of price inflation in the property market. It points to a deeper supply-side problem that affects the entire urban area, not just tourist-heavy neighborhoods. For those looking to invest, understanding these nuances is critical, and seeking advice from agents who specialize in investment properties can provide a major advantage.
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The study implies that the focus on regulating AL may have overlooked more fundamental issues within the housing sector. The lack of new housing supply remains a central challenge for cities like Lisbon and Porto. As policymakers consider future actions, this analysis suggests a broader approach is needed to create a more balanced and accessible housing market for both residents and investors. Navigating the existing legal issues in the rental market remains a key task for property owners.
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