Portuguese Government will ban new “Alojamento Local” licences

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The Portuguese government has recently announced a new housing plan to address the housing crisis in the country. One of the key components of this plan is the ban on new “alojamento local” properties.

“Alojamento local” is a term used in Portugal to refer to short-term rental properties used by tourists. These properties are often owned by individuals and rented out through platforms such as Airbnb or Booking.

The ban on new “alojamento local” properties means that no new licenses will be issued for short-term rentals in residential areas. This measure is intended to address the issue of housing affordability and availability, as many locals have been struggling to find affordable housing due to the high demand for short-term rentals.

Marina Gonçalves, the new Minister for Housing, has stated that the ban is necessary to prevent the “touristification” of residential areas and to ensure that more housing is available for locals. The government’s objective is to increase the supply of long-term rentals and encourage property owners to rent out their properties for longer periods.

Foto by: António Contrim/ LUSA Feb.2023

The ban has caused some controversy among property owners who rely on “alojamento local” properties for income. However, the government has stated that existing licenses will not be affected by the ban, and property owners with existing licenses can continue to rent out their properties.

The new housing plan also includes measures to protect renters, such as the creation of a national rent index and stronger rent control laws. These measures aim to prevent landlords from increasing rent prices excessively and to ensure that renters have access to affordable housing.

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By Artur Cruz Tavira Real Estate Agent

Author: Artur Cruz

I’m a real estate agent several times awarded in my career, “Centurion Producer”, “Hall of Fame”, real estate agent also awarded in Las Vegas, USA at one of the biggest and more important real estate conventions in the world. East Algarve “Top Producer” in real estate.

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