Policy changes and short-term rentals in Portugal: how do they affect housing prices?

Details

Supervisors

Thewissen, James

Faculty

Louvain School of Management

Degree label

Master [120] en sciences de gestion, à finalité spécialisée

Abstract

In this paper, we examine the impact of short-term rentals and foreign population influx on housing prices in Portugal from 2012 to 2021, especially after the introduction of the policy of 2014 on short-term rentals. Utilizing data on housing prices, foreign residents, and short-term rental registrations, it highlights significant trends, including a sharp increase in housing prices post-2014 and an exponential growth in short-term rentals. The findings reveal a positive correlation between short-term rentals, foreign population, and housing prices, underscoring the influence of tourism and foreign investment. Our results emphasize the need for balanced policies to ensure sustainable urban development and housing affordability.