They Used to Be Expensive Flats for Tourists – Soon They Will Be Affordable Housing

As the corona pandemic revealed the underlying housing problem in all big cities, Lisbon, Portugal, will soon launch its ambitious plan to convert some of the tourist flats into affordable housing, a “risk-free” option for landlords.

“In a certain sense Covid has created an opportunity,” says Fernando Medina, the mayor of Lisbon. “The virus didn’t ask us for permission to come in, but we have the ability to use this time to think and to see how we can move in a direction to correct things and put them on the right track. We need to make a shift. [The programme] should change the way the housing market works here in the city.”

Each landlord will be given up to €1,000 ($1,200) per month by renting their properties for a minimum of five years. After this period, the city becomes in charge of finding tenants and renting the homes at a fair rate. Still, landlords can count on a steady income since the city is willing to pay up to three years’ rent in advance. Governments around the world are looking to change their approach regarding the housing crises, and the Lisbon plan could set an example. The city has a €4m budget ($4.8m) for the programme in which 1,000 properties can take part, with a possibility of doubling that number given a sufficient interest in the programme.