Protest in Portugal Over Surging House Prices

Lisbon has become popular as a holiday destination in recent years due to its charming cobblestone alleys, vibrant architecture, and delectable Portuguese custard tarts.

However, as the number of overnight stays in Portugal hit a record high in August, some Lisbon locals are growing impatient with how tourism affects their quality of life.

Thousands of residents of the Portuguese capital have signed a petition calling for a crackdown on Lisbon holiday rentals in response to protests in September against the city’s housing market.

At the end of last week, the city’s municipal parliament heard the plea, which has the backing of over 6,600 residents, and calls for a vote on the current tourist rentals in Lisbon’s residential blocks.

The petition’s sponsor, the Referendum Movement for Housing (MRH), wants to eliminate the over 20,000 short-term holiday rentals in residential blocks of Lisbon to make room for inhabitants.

According to Luísa Freitas, MRH representative headquartered in Lisbon, “the conversion of homes into holiday rentals has led to evictions and the displacement of residents from the city’s neighborhoods,” she told CNN Travel.

Portugal’s Housing Crisis: A Growing Concern

The Fair Life organization organized the demonstration, whose Rita Silva told Reuters, “The situation hasn’t improved one bit in the last two years.”

Portugal’s housing issue stems from a long-term lack of affordable housing, which has been made worse by the influx of affluent foreigners drawn to the country by residence privileges and tax incentives. The housing market is further squeezed by the rise in short-term vacation rentals brought on by a tourist boom.

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Protesters are cautious despite Portugal’s center-right government announcing a 2 billion euros ($2.23 billion) spending package to construct about 33,000 houses by 2030.

Although successive administrations develop different policies and bundles of remedies, the housing issue only worsens – Silva stated.

A Rising Holiday Rental Market

Lisbon is not the only well-liked tourist spot reevaluating its holiday rental industry. Barcelona said earlier in the summer that by 2028, it will not allow visitors to rent apartments.

In February, the European Union resolved to increase openness about short-term rentals, recognizing that these types of properties account for around 25% of all lodging for tourists in the EU.

In February, the well-known travel agency Airbnb, which has become synonymous with holiday rentals, declared it “welcomed” more openness.

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Locals’ Forced to Move to the Outskirts’

Over the last year, the referendum petition has been distributed across Lisbon’s community centers and local businesses, garnering the signatures of around 4,400 non-Lisbon citizens and locals.

Many of these non-residents are former Lisbon residents who were “forced to move to the outskirts by drastic rent increases,” according to Freitas.

“We also gathered their signatures to show not only the will of the people but also the scale of the impact of Lisbon’s housing policies,” adding that their voices are just as significant as those of those who can vote.

Lisbon’s city assembly is required to discuss the referendum due to the petition’s high number of signatures, but there is no assurance that it will proceed.

Lisbon’s Tourism Business is Evolving

Freitas emphasizes that a successful vote would stop Lisbon vacation rentals from “existing in houses registered for residential use” but not completely ban them. Additionally, it would be illegal for landlords to set up new holiday rentals in residential buildings in the future.

The broader effects of Lisbon’s tourism industry on the city’s structures and urban environment are another issue that worries Freitas.

She suggests, “In favor of tourist-focused souvenir stores, travel agencies, and tourist-focused restaurants, businesses and services essential to the community are being displaced more frequently.” Rebalancing the city’s housing market remains the main priority for the time being, nevertheless.