Short-term rentals in Portugal lose overnight stays as tourism grows: the regional map

Local accommodation in Portugal lost slightly in demand in 2025 and in the first eight months of 2026, while tourist accommodation as a whole continued to grow. The difference is not the same across the territory: the North and the Alentejo gained overnight stays, while the Lisbon Metropolitan Area, the Algarve and the Azores lost them.

Demand falls in local accommodation, but not in tourism

An overnight stay is each night spent by a guest in an establishment. In 2025, local accommodation recorded 11,977,521 overnight stays in Portugal, 0.9% fewer than in 2024. That year, local accommodation accounted for 14.6% of all tourist accommodation overnight stays in Portugal.

Between January and August 2026, the decline deepened slightly: overnight stays in local accommodation fell 1.3% compared with the same period of 2025, while those in all tourist accommodation rose 1.5%. The share of local accommodation thus dropped to 14.4%. In other words, the growth in tourism in Portugal is going mainly to other forms of accommodation.

The regions follow opposite paths

The regional map does not follow the national total. The chart shows the change in overnight stays in local accommodation in each region, between January and August 2026.

In the North, overnight stays in local accommodation rose 4.1%, below the 5.3% of the region's tourist accommodation. In the Alentejo they rose 3.2%, close to the regional total's 3.6%. In the Centre, the change was practically nil (0.1%), in a year when the region's tourist accommodation fell 2.2%. In Madeira, overnight stays in local accommodation rose 0.4%, even though the total fell 1.1%.

In the Lisbon Metropolitan Area, overnight stays in local accommodation fell 4.4%, while the region's tourist accommodation grew 1.4%. In the Algarve the drop was 3.1%, with regional tourism rising 1.6%. In the Azores the decline was 7.5%, the steepest, in a regional total that fell 1.9%. The 2026 data are still provisional and may be revised by INE.

The weight of local accommodation also varies greatly from region to region.

In 2025, local accommodation accounted for 18.5% of overnight stays in the Azores, 18.0% in the Lisbon Metropolitan Area and 17.1% in the Centre, compared with 10.1% in Madeira and 9.9% in the Algarve.

Revenue per overnight stay and average length of stay

Total revenue from local accommodation was 627.9 million euros in 2025, 1.0% more than in 2024. With fewer overnight stays and more revenue, the average revenue per overnight stay was 52.4 euros in Portugal. Revenue per overnight stay is the establishments' total revenue divided by the number of nights, not the price of a specific booking.

Among the regions, the highest value was that of the Algarve, at 60.8 euros, followed by the Lisbon Metropolitan Area, at 54.6 euros. The lowest were those of the Centre, at 45.0 euros, and the North, at 47.5 euros. The average length of stay in local accommodation was 2.36 nights per guest in Portugal. These figures show how much each night earns and how long guests stay, but they do not show whether the profitability of a particular property is going up or down.

The rules in force since November 2024

Decree-Law No. 76/2024, of 23 October, in force since 1 November 2024, amended the local accommodation regime (Decree-Law No. 128/2014) and reversed part of the Mais Habitação programme (Law No. 56/2023). It ended the general suspension of new registrations, the validity period of registrations and the reassessment foreseen for 2030. It returned to municipalities the power to regulate the activity through their own regulations, with containment areas and areas of sustainable growth defined by parish.

In containment areas, the municipality may, for example, refuse new registrations in homes rented for housing in the two preceding years and limit the transfer of new registrations. In areas of sustainable growth, it may require additional requirements. Municipalities with more than 1,000 registrations had 12 months, counted from the date of entry into force, to decide whether to regulate.

In buildings under horizontal property, beyond what already appears in the constitutive title or the condominium regulations, the condominium assembly may only prohibit new local accommodation with two thirds of the permilage, and the decision applies only to registrations requested afterwards. The extraordinary contribution on local accommodation, created by Mais Habitação, was revoked by Decree-Law No. 57/2024, of 10 September, with effect from 31 December 2023. These rules are context for reading the data: the figures do not allow us to conclude that they are the cause of the variations.

What this means for investors

Demand for local accommodation in Portugal does not evolve in the same way in all regions. Between January and August 2026, the North was the region where overnight stays grew the most and the Azores the region where they fell the most. In the Lisbon Metropolitan Area and the Algarve, local accommodation lost overnight stays while regional tourism grew, which deserves attention from those buying to operate in those regions.

Before buying, it is advisable to confirm with the municipality the regulation in force and the classification of the parish, because a containment area may prevent or condition registration. It is also advisable to read the constitutive title and the condominium regulations. To compare regions, revenue per overnight stay and average length of stay help to understand the type of demand.

There is an important limitation: INE only includes in local accommodation establishments with 10 or more beds. Many registered apartments and houses have fewer beds and are left out, so these figures mainly measure the professional segment. This analysis is not legal advice: before an investment decision, confirm the rules with a qualified professional.