Porto City Council is preparing to reinstate the Local Accommodation (LA) regulations in November 2024, after the central government returned the power to regulate the sector to the municipalities, allowing Porto to establish new rules. This measure follows the “Mais Habitação” initiative, which suspended the previous regulation, but with the approval of the new regulation, the city intends to regulate the growth of LA more effectively, guaranteeing a balance between tourism and permanent housing.

Objectives of the New Regulation

   →  The regulation to be reinstated aims to establish containment areas and sustainable growth zones for Local Accommodation. These areas were defined on the basis of the pressure that tourism exerts on the real estate market, namely in the Historic Center and the parish of Bonfim, areas with high demand for LA.

   →  The aim is to reduce pressure on the permanent housing market, where demand for long-term rental properties has risen significantly, resulting in price increases. Thus, the intention is to balance the housing sector and tourism, without jeopardizing the supply of housing for permanent residents.

Measures and impact on parishes

   →  One of the main changes will be the suspension of new licenses for Local Accommodation in areas such as the Historic Center and Bonfim. These areas have been the target of a growing number of LAs, which has exacerbated the increase in rents. The measure aims, on the one hand, to contain the growth of LA in these saturated areas, but also to prevent the increase in prices from moving to other neighboring parishes, such as Campanhã, which has been growing in terms of real estate investment.

   →  The regulation will also include measures that make it impossible to convert properties with rental contracts to LA, unless the property has been unoccupied for at least two years. These measures are intended to limit real estate speculation and guarantee the maintenance of an affordable housing supply.

Approval and Expectations

   →  The proposal will be discussed and probably approved by the Municipal Assembly in November. Porto City Council hopes that, with the implementation of this new regulation, it will be possible to create a balance between tourism and permanent housing, minimizing the impact of Local Accommodation on the rental market and ensuring that Porto remains a dynamic and accessible city for its inhabitants.

   →  This move by the City Council reflects a growing concern to manage the growth of Local Accommodation in a more sustainable way, preserving both the quality of life of permanent residents and the city's tourist potential.