Lisbon locals face eviction in favour of trendy tourism, celebrities, short-term rentals

October 21, 2017

Lisbon tourism is booming. Locals are being indirectly forced out by trendy tourism and celebrities

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Lis­bon tour­ism is boom­ing. With­in a month of the “GT” Insight dir­ect from Lis­bon — “Why We Hate Tour­ism Tours & why you should too” by Ricardo Oli­veira — the Thom­son Reu­ters Found­a­tion reports on the neg­at­ive impacts of trendy tour­ism on loc­als’ lifestyles.

Carla da Cunha has a tight budget with which to find a new home in Por­tugal’s newly-fash­ion­able cap­it­al, Lis­bon, or else she and her two chil­dren could be out on the streets.

She has been unable to renew the lease on her 20-square-metre flat in the sought-after Alfama neigh­bour­hood after it was bought by a com­pany offer­ing short-term rent­als to tourists.

“I was born in Lis­bon and raised in Lis­bon, and now there’s just no place for me in Lis­bon,” said da Cunha, who relies on a monthly gov­ern­ment sub­sidy of 485 euros (~US$575) to top up her earn­ings selling han­di­crafts to tourists.

“Poor people like us are now seen as ver­min, ver­min that have to be elim­in­ated and pushed out of town.”

As Lis­bon has trans­formed from a sleepy back­wa­ter to one of Europe’s hot­test tour­ist des­tin­a­tions, crit­ics say loc­als are being squeezed out of their own city by an inter­na­tion­al elite.

Pop sing­er Madonna and film stars Mon­ica Bel­luci and Michael Fass­bend­er are among a grow­ing num­ber of for­eign­ers said to have bought prop­erty in Lis­bon in the past year.

Rents have ris­en briskly as demand rises and land­lords shift to luc­rat­ive short-term rent­al ser­vices like Airbnb.

Loc­als earn­ing Por­tugal’s monthly min­im­um wage of 557 euros say they are being priced out of neigh­bour­hoods that they have lived in for dec­ades. Da Cunha, who was pay­ing 220 euros a month, said she can­not afford any­thing on today’s market.

For 71-year-old António Melo, the choice to fight to stay in the Alfama apart­ment that he has ren­ted for a dec­ade was easy.

He can­not find a place near his doc­tor and oth­er ser­vices in the his­tor­ic dis­trict, with its nar­row cobbled streets and pas­tel build­ings, for any­thing close to the 277 euros a month he cur­rently pays.

He is defy­ing the evic­tion notices that star­ted arriv­ing after his build­ing was bought by a tour­ist rent­al company.

“If things con­tin­ue like this, pretty soon you won’t have a single Por­tuguese per­son liv­ing here,” he said, adding that souven­ir shops hawk­ing por­cel­ain sardines and cork hand­bags have replaced loc­al phar­ma­cies, baker­ies and gro­cery stores.

Por­tugal was named last month as Europe’s best des­tin­a­tion for expat­ri­ates to live in 2017 and the world’s best for qual­ity of life, in a sur­vey pub­lished by social net­work InterNations.

House prices in Lis­bon have ris­en by about 25 per­cent since 2011, accord­ing to Con­fid­en­cial Imobiliário, a com­pany that tracks real estate data.

Patrí­cia Barão, who heads JLL real estate firm­’s res­id­en­tial team in Lis­bon, said the wave of for­eign buy­ers is like noth­ing she has ever seen.

“Last year was our best year ever, and this year is on track to be even bet­ter,” she said, adding that six out of 10 of her cli­ents were for­eign, with Brazili­ans, French, Turks and Chinese top­ping the list of buy­ers from 43 nations.

Por­tugal’s real estate boom and tour­ists flock­ing to its sandy beaches and his­tor­ic­al castles have helped drive recov­ery after an eco­nom­ic and debt crisis that star­ted in 2010.

“It’s noth­ing short of a mir­acle,” said Hugo Fer­reira, exec­ut­ive dir­ect­or of the Por­tuguese Asso­ci­ation of Real Estate Developers and Investors.

“The stars aligned, and today Por­tugal is one of the most fash­ion­able places on the planet.”

Lisbon tourism is booming. Locals like Carla are being indirectly forced out of their homes by trendy tourists and celebrities

Carla da Cunha, a 38-year-old moth­er of two, in the court­yard of her apart­ment in Lisbon’s Alfama neigh­bor­hood on Septem­ber 8, 2017. Thom­son Reu­ters Found­a­tion/Jenny Barch­field

Colour and life

Lis­bon old-timers say the prop­erty boom, fuelled by tax breaks for for­eign investors, has dis­placed tens or hun­dreds of thou­sands of people in west­ern Europe’s poorest country.

In an open let­ter to the gov­ern­ment, the cam­paign group Mor­ar em Lis­boa or ‘Liv­ing in Lis­bon’ said loc­al com­munit­ies that give col­our and life to the city are on the verge of col­lapse and called for rent con­trols to be introduced.

It said spec­u­la­tion has been driv­en by a golden visa pro­gramme, which gives Por­tuguese res­id­ency to for­eign buy­ers who spend at least 500,000 euros on real estate, allow­ing them to travel freely with­in Europe’s 26-coun­try Schen­gen zone.

More than 4,400 for­eign­ers, over­whelm­ingly Chinese investors, have acquired golden visas since in 2012, gov­ern­ment data shows.

Por­tugal’s Social­ist gov­ern­ment cre­ated the pos­i­tion of Sec­ret­ary of State of Hous­ing in July, appoint­ing Ana Pinho, an archi­tect, who has expressed reser­va­tions about gentrification.

Pin­ho’s office declined an inter­view request but said she would soon unveil a new hous­ing strategy.

Developers say for­eign investors are doing Lis­bon a ser­vice by renov­at­ing a huge num­ber of dilap­id­ated build­ings which poorly remu­ner­ated land­lords allowed to crumble.

But cam­paign­ers are urging the gov­ern­ment to rethink reforms which abol­ished dec­ades-old rent con­trols to stim­u­late the rent­al market.

“By push­ing loc­als out, they’re killing the goose that lays the golden eggs,” said Luís Mendes, a geo­graph­er with the Uni­ver­sity of Lis­bon, who sup­ports Mor­ar em Lisboa.

“Who’s going to want to come to a city that’s been com­pletely stripped of the very char­ac­ter that drew the tour­ists and investors in the first place?”

($1 = 0.8442 euros)

Source: The Thom­son Reu­ters Found­a­tion, the char­it­able arm of Thom­son Reuters.

Fea­tured image: 71-year-old retir­ee António Melo is pic­tured in his rent­al apart­ment in Lisbon’s Alfama neigh­bor­hood. Pic­ture taken on Septem­ber 8, 2017. Thom­son Reu­ters Found­a­tion/Jenny Barch­field.

Related: Check out the “GT” Insight by Ricardo Oli­veira dir­ect from Lis­bon: “Why We Hate Tour­ism Tours & why you should too”.

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