Faro's Local Accommodation Regulation Under Public Consultation: What Changes Are Coming?

Faro's proposed regulation for Local Accommodation (AL) management is now open for public discussion for the next 30 days, as announced in the Diário da República on Friday, June 27, 2025.

According to a source from the Faro City Council, the document does not significantly alter the current situation. This is because the current executive is at the end of its term and does not wish to influence decisions that will be made by the next administration, following the municipal elections scheduled for late September or early October.

The source added that if the document is approved, Faro will have an updated regulation that will allow the next executive to make any desired decisions regarding the sector.

The 'Municipal Regulation Project for the Sustainable Management of Local Accommodation in Faro' was approved during a council meeting on April 26. Proposed changes include the introduction of containment areas, sustainable growth areas, and the role of a Local Accommodation Ombudsman.

Increased AL offerings pose urban management challenges

The document warns that the growth in AL offerings 'brings challenges at the urban management level, which, if not well managed, could create pressure on the housing market.'

Given the current housing shortage, the priority is to utilize properties not dedicated to permanent housing. Data from the proposal shows that at the end of last year, the municipality of Faro had 38,638 accommodations, of which 1,016 were ALs. The highest intensity of ALs was in Santa Bárbara de Nexe (4.49%): 135 out of 3,010 accommodations. The municipal average is 2.63%, with all other parishes below this figure.

The highest number of ALs is, as expected, in the center of the Algarve's capital city, in the Sé/S. Pedro parish: 683 units out of 26,122 accommodations, with a relevance ratio of 2.61%.

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