The possibility of finding long-term rental property in certain areas of Lisbon has all but evaporated with drops of over 90% in availability in the Olivais and Estrela parishes.
Between 2013 and May 2016, the number of homes available for long-term rental in Lisbon fell 75%, according to Casa Sapo and Remax.
In Oporto, the drop is even more pronounced with a decline of 85% over the same period as both Oporto and Lisbon's tourist appeal increases with visitor numbers booming.
This is the trend that the government aims to halt with the enforced allocation of a proportion of tourist rental properties to the long-term lettings market.
The government is preparing a new law to be pushed through in September this year requiring owners of multiple apartments to release some short-term tourist apartments to the long-term rental sector, to charge owners higher condominium fees for tourist rental apartments and to impose an additional ‘urban sustainability’ tax for each tourist rental apartment.
Sale prices are rising too as over the same three-year period the number of properties for sale in Portugal has fallen significantly, especially in the capital.
According to Casa Sapo, there has been a drop of 47% in Lisbon and 17% in Oporto. At the national level, there were 15% fewer properties for sale in May this year than here were three years ago.
The socialist government’s desire to interfere with Portugal’s property market inevitably will end in increased bureaucracy and adverse affects. The Law of Sod soon will be felt and increasingly obtuse legislation will be developed to plaster over the cracks.
