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Buy to Rent, Local accommodation in Portugal grew 65% in 2016

In addition to the development of tourism, the local accommodation in Portugal has been growing since 2015. Today, there are around 35 thousand registered establishments, representing a 65% growth compared to the 12,108 licensed business  until 2014.

Local housing renting activity has stimulated real estate investment, boosted urban rehabilitation, challenged traditional leasing and created newjobs.
According to the National Registry of Local Accommodation Establishments (RNAL), presented  by Turismo de Portugal, up to November 30 of this year, 34,998 properties  were registered for this type of business  located mainly in the districts of Faro(16,263), Lisbon (8,432 ) and Porto (2,900).
Of the approximately35 thousand establishments registered, 22,565 operate in the modality of apartment, 10.130 in houses and 2,303 in establishments of lodging– 'hostels'.

Booming business
The real boom in local accommodation began in 2015, when 11,071 new establishments were registered and continued in 2016, as by 30 November this year, 11,819 spaces were registered.
Of these, the majority is located in the districts of Lisbon (3,904), Faro (3,890) and Porto (1,366).
According to a study by the "Universidade Nova de Lisboa" and promoted by the Hotel Association of Portugal, the amendment to the Legal Regime of Local Accommodation in 2014 may have led to a 13.2% increase in rental prices and a 30.5% Value of transactions.

Local accommodation helps rehabilitation
Regarding the impact on urban rehabilitation, Luís Lima, president of the Association of Professionals and Real Estate Agents of Portugal,stressed that "40% of the assets that were uninhabited in Lisbon were rehabilitated at the expense of the local accommodation."
"Thelocal lodgings are here to stay. Completely allied to tourism and real estate, it is a phenomenon that is helping a lot to the rehabilitation of the cities, "he assured.

Source: Lusa /Diário Económico

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