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Lisbon City Hall has already implemented (in November 2018) its first containment area, preventing new Alojamento Local (short-term) licences from being issued in the freguesias (parishes) of Alfama, Mouraria, Castelo, Bairro Alto and Madragoa (including also some areas of Bica, Príncipe Real, Santa Engrácia and some of Graça)

The method used to determine which parishes would be part of the containment area was based on the ratio of short lets to available housing. The parishes that were subject to a pressure level of 20% would integrate into the containment area, forbidding new Alojamento Local licences of being issued.


In April 2019 the city hall added the parishes of Graça and Bairro das Colónias (as relative containment areas) and in October 2019 they also added Baixa, Avenida da Liberdade, Avenida da República, Almirante Reis and Colina de Santana to the containment area.


GuestReady being a property management partner to hosts has developed a study to help predict which parishes are likely to be added to the containment areas, in 2020, using the same calculation method as the Lisbon City Hall.


The parishes of Arroios, Estrela, Avenidas Novas, Alcântara, Campo de Ourique and Penha de França are the areas most likely to be added to the Lisbon containment area, forbidding new Alojamento Licences from being issued. Click To Tweet


Arroios already has a ratio of 15.32%, Estrela has a ratio of 13,71%, Avenidas Novas has 6.33%, Alcântara has 4.70%, Campo de Ourique has 4,26% and Penha de Franca has 4.17%. These are the parishes most likely to be included in the current containment area.


The Lisbon City Hall was criticized in the past, thanks to a large number of licences issued before the containment area regulation was in affect. A year later, the city hall instated the new containment area effective-immediately. GuestReady predicts that the next containment area expansion will also be applied immediately after it’s announced.


Check the new likely parishes to join the containment area map here:

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