Housing Pressure Zones : How Lisbon and Porto Regulate Short-Term Rentals

Since late 2024, the national legal framework for Alojamento Local (AL) has delegated to municipalities the power to define “housing pressure zones” (zonas de pressão habitacional) where new licences are limited. The goal is to regulate tourist saturation while preserving housing for residents. In Lisbon and Porto – Portugal’s two main metropolitan areas – the approaches differ, but both are highly restrictive in 2025.

Lisbon – Citywide Suspension and Contention Zones

Lisbon remains Portugal’s most heavily regulated AL market. The city had about 19,000 registered AL units by the end of 2024 , mostly in the historic centre. With several districts exceeding critical thresholds, the municipality had already introduced contention zones since 2019 (Baixa, Alfama, Bairro Alto, etc.). In November 2024, it imposed a one-year (renewable) suspension on all new AL licences while drafting a new regulation. The 2025 draft provides:

• Absolute contention (no new licences) in 8 central freguesias where the AL-to-housing ratio exceeds 5%: Santa Maria Maior, Misericórdia, Santo António, São Vicente, Arroios, Estrela, Avenidas Novas, and Alcântara . These areas include the historic core (Alfama, Baixa, Chiado, etc.), where AL saturation is very high (see table below).

• Relative contention (limited quotas) in 6 other freguesias where the AL ratio is between 2.5% and 5%: Belém, Campo de Ourique, Penha de França, Parque das Nações, Ajuda, and Campolide . Only a small number of new licences can be issued in these districts.

• Micro-zone rules further restrict saturated neighborhoods within otherwise “open” districts (e.g. Entrecampos in Alvalade, Avenida Gago Coutinho).

In practice, most of Lisbon’s historic and central districts are not issuing new AL licences . The long-term objective is to reduce all freguesias below the 5% threshold and reconvert some inactive properties into long-term rentals.

The table below summarizes these freguesias with the percentage of housing stock occupied by AL units (AL-to-residential ratio):

Sources: Lisbon municipal data 2024/25.

In practical terms, this means that no new AL licences are granted in these central areas (where the city had already set a 5% threshold in 2022)  . For example, Santa Maria Maior (Alfama/Baixa/Chiado) now has nearly two-thirds of its housing stock used as tourist accommodation . Faced with this critical situation, Lisbon is even considering not renewing existing AL registrations in oversaturated areas to bring them back down to the 5% quota .

Porto – Targeted Restrictions on the Historic Centre

Porto, with about 10,000 AL units as of early 2025 , is also under strong regulation. Since 2020, the city had suspended all new licences in its UNESCO-listed historic centre. In October 2024, it extended this pause to the Bonfim freguesia for six months  to prepare a new regulation.

In December 2024, Porto lifted the citywide suspension but confirmed permanent restrictions in saturated zones. Specifically, no new AL licences are issued in the 6 historic freguesias (Sé, Cedofeita, Santo Ildefonso, São Nicolau, Miragaia, Vitória) nor in Bonfim . Outside these areas, new AL licences are possible, though the city continues to monitor saturation and in some districts only issues temporary or revocable permits depending on market conditions.

This targeted approach aims to preserve housing in the historic core while allowing more flexibility elsewhere in the metropolitan area.

How Airnest REIM Can Help

Even in highly restricted areas, Airnest REIM can identify profitable and compliant investment strategies:

• Mid-term rentals (30–90 days) targeting digital nomads or corporate tenants — no AL licence required.

• Alternative short-term rental solutions through specific legal frameworks or exemptions, depending on property and zoning.

• Comprehensive compliance and profitability analysis before any investment, in partnership with legal and tax experts.

We review each case individually, considering the exact legal context of Lisbon or Porto (and their freguesias). In some situations, short-term rental setups may still be viable, but only after a full compliance review. Contact Airnest REIM to assess your property and define the most effective strategy under the 2025 rules.

Sources : Municipal studies and specialized press (2024–2025 data    ). Precise AL share per freguesia is based on official analyses and recent reports.