The impact of tourism on the real estate market in Portugal

The increase in tourism in Portugal has had a profound impact on the real estate market, especially in popular destinations such as Lisbon, Porto and the Algarve. Here are the key factors that explain this influence:

Growth in demand for short-term rentals

The growing flow of tourists has boosted demand for short-term rental properties, such as Airbnb. This has led many owners to prefer this type of rental over long-term contracts, due to the higher profitability in tourist areas.

Rising property prices

With the interest of investors and property developers in properties for short-term rentals, house prices have risen significantly, particularly in prime areas. Lisbon, Porto and coastal regions register the largest increases, making it difficult for the local population to buy a house.

La Maison Blanche, Cascais

Development of new ventures

The growth in tourism has also boosted the development of new real estate developments, such as hotels and tourist accommodation, especially in regions that are more attractive to foreigners. This phenomenon contributes to the reconfiguration of urban and rural areas.

Pressure on the local market

In many cities, the high demand for short-term properties has caused a decrease in the supply of affordable housing for permanent residents, intensifying real estate speculation and gentrification in historic areas.

Estrela, Lisbon. Includes AL license

Economic benefits for owners

Despite the challenges, tourism has provided significant financial benefits to owners, many of whom have turned old properties into lucrative tourist accommodation.