There is no doubt about the popularity of Portugal today, with Lisbon at the top of world tourism preferences.
It’s easy to see the reason why Lisbon is so popular nowadays and what makes it so special. History, tradition, contemporaneity, beauty, beaches, weather, cuisine and charm, make the Portuguese capital a unique destination in Europe and at very competitive prices.
According to Lisbon Tourism in 2013, more than half of the tourists inquired stated that Lisbon exceeded their expectations and include it in the Top 5 of its recommendations. This satisfaction is reinforced by several international headlines and awards – recently, Lisbon was chosen as the Best European Destination for “City Break” by World Travel Awards and the Amadeus & WTM Travel Experience Awards.
Tourism in Lisbon – A Sustained Growth
Tourism indicators have evolved positively over the past decade and the growth is becoming more evident each year. According to data from ANA Airports of Portugal, the Lisbon Airport had a passenger numbers growth of more than 65% in the last 10 years, with nearly 20 million passengers in 2015.
For operational indicators, the Lisbon occupancy rate in 2015 reached 73%, which represents an annual growth of 8.8%. The average price per room increased to € 78.31.
Short-Term Rental Apartments in Lisbon
As in other European capitals, in Lisbon, this type of accommodation is considered an increasingly alternative to traditional supply and “massive” hotels. The change in the guests’ habits, who began to look for more inexpensive and authentic accommodations, able to provide new experiences and a more local lifestyle, had a major impact in this market. These changes led to the emergence of several “guest houses”, hostels and touristic apartments, mostly located in the historic center, where hotel offer is much lower. At the same time, investors seeking to obtain the Golden Visa, saw this market as an opportunity to get return on their real estate investments.
In recent years various factors contributed to the exponential growth of this market in Lisbon, such as:
– The global trend for more authentic experiences;
– The increase of B2C platforms that allow the costumers to make their own reservation, like Booking, Airbnb, Windu, Homeaway, etc .;
– Lack of hotel offer in the city historical center, where, on the other hand, there was a high number of vacant buildings;
– Decrease in demand for apartments for acquisition;
– Penalties and fines to owners with unoccupied buildings;
– New rent regulation that allowed to unlock several buildings for rehabilitation;
– Higher profitability compared to the long-term leasing;
It’s estimated that, currently, there are more than 4,000 holiday apartments in Lisbon, much of which are still managed by its owners. individually or informally. A trend that is changing due to the consolidation of this segment, with an increasing number of homeowners seeking an external professional management. This type of apartments is mainly sought by foreigners traveling in family or group, offering, in general, a more authentic experience than traditional hotels and serviced apartments. Most apartments are T1 or T2, but the offer can vary between T0 and T4. The existing offer also differs in terms of quality and location. About 85% of tourist apartments are located in the main areas of the historic center of Lisbon like Castelo, Alfama, Baixa, Chiado, Bairro Alto and Principe Real. The highest prices are in Chiado, followed by Bairro Alto and Baixa, with the larger capacity apartments mainly in Chiado and Baixa. The price is influenced by the location, quality and capacity of each apartment. While the Chiado, with a greater supply of premium and larger apartments, has an average daily price of 39 € per person, the Castelo area, with smaller apartments, has an average daily price of 26 € per person.
Tourist apartments are mostly searched by foreign tourists who come for leisure and city breaks. This type of visitors travel mainly in groups of two or more people, looking for a more affordable and authentic stay. The annual occupancy rate of this type of accommodation is located at 60% and it’s expected a continuous growth in the future.
If you want to enter this market and you’re looking for a professional management, contact us and join The BnBird Experience.