As reported by Jornal Económico (JE), the figures show that the number of active AL registrations fell from around 20,000 to approximately 11,700 following a clean-up of so-called “ghost” registrations that were no longer operating.

This decline has coincided with restrictions on local accommodation in parts of Lisbon, including areas where new registrations are either completely prohibited or subject to tighter conditions.

However, the reduction in AL has not been accompanied by a fall in property prices.

Supply shortage

Eduardo Miranda, President of the Association of Local Accommodation in Portugal (ALEP), said the figures show that the main issue facing the housing market remains a structural supply shortage.

“A fall of 30 percent to 40 percent, even if it were 20 percent, should have had an effect on prices in those containment areas and neighbourhoods”, he told JE. In reality, it did not. There is no area where prices fell.”

João Pereira, Economist and ISEG professor, said restrictions may have had some effect by slowing the pace at which prices were increasing.

However, he explained that this does not necessarily mean that property values should have fallen, pointing to the number of factors behind Lisbon’s sustained rise in house prices over recent years.

The debate comes as Brussels has introduced a new Affordable Housing Act that establishes a common framework for identifying areas under housing pressure and sets conditions that must be met before governments can introduce restrictions on local accommodation or other uses of properties that do not serve as a primary residence.