Lisbon has become prohibitive for digital nomads – 08/31/2023 – World

With a mild climate by European standards, quality internet and a large part of the population fluent in English, Lisbon has become something of a darling for digital nomads in recent years. Now, however, the increase in the cost of living, mainly driven by the skyrocketing rent prices, is making the Portuguese capital lose its appeal among this public.

Data from Nomadlist, one of the main information platforms for the remote worker community, shows a significant reduction in the number of arrivals. In July, around 7,600 nomads landed in the city, against 12,600 in October 2022. The reduction is even more pronounced compared to the peak of arrivals recorded by the platform: 20,600 people, in October 2021.

In the evaluations, users mainly criticize the prices practiced in the city. “Housing, in particular, is outrageously expensive for sad and precarious spaces: buildings without elevators, without heating, without air conditioning, with a lot of mold, leaky roofs and windows and no soundproofing”, says one of the most recent reviews in platform.

A survey by the international consultancy Housing Anywhere pointed Lisbon as the most expensive European city, among the 23 analyzed, to rent a furnished one-bedroom property in the central region. The average price for this type of apartment, one of the most popular configurations among digital nomads, was €2,500 (R$13,380) per month.

“It is not a drop in popularity of Lisbon. A lot of people like the city and would like to be there. What happens is that, due to the tourism records, there are no longer options at decent prices, and with that there was a reduction in arrivals” , analyzes Gonçalo Hall, president of the Association of Digital Nomads of Portugal.

“Nomads use the accommodation structure of tourism a lot. Right now, apartment owners make a lot more money from tourists on Airbnb than renting for a whole month to nomads,” adds Hall.

According to him, a similar phenomenon happened five years ago in Barcelona, ​​which used to be one of the preferred destinations for travellers. “It was one of the biggest hubs in Europe, but suddenly it became so expensive that nomads looked elsewhere.”

Now spending a season in Seville, Spain, English teacher Anne Claire Stuart, 35, has already been in Lisbon as a digital nomad in two periods: in 2015 and in 2019. The British woman says she loved the experience and would like to return, but it is said to be impeded by the prices of rents in Lisbon.

“I cannot quite understand how everything happened so fast. Prices have been increasing in such an absurd way that, currently, I think that any European capital, even Paris, has better and more affordable options”, laments Stuart.

The teacher says she was positively surprised by the quality of the Portuguese’s English and also by the diversity of events aimed at expatriates, but claims that she noticed some “somewhat aggressive speeches” in relation to digital nomads, especially on social networks.

On platforms specialized in this public, an alleged “hostility” of locals towards travelers appears frequently. In the center of Lisbon, there are posters and graffiti that are critical of this niche.

In recent years, the arrival of digital nomads –many with incomes well above the Lisbon average– has been pointed out as one of the pressure factors on prices in the capital. At the opening of the last edition of the Web Summit, one of the largest technology conferences in the world, there was a demonstration against digital nomads and their “privileges” on Portuguese soil.

Drawing attention to the impact of the arrival of this public on the already pressured housing market in the city, one of the posters read: “1 digital nomad = several forced nomads”. Protesters also criticized the launch of a new visa by the government, aimed exclusively at the sector.

The residence permit for digital nomads has been considered a success by the authorities. To be eligible for the visa, professionals must work remotely for companies in other countries, whether contracted or on a freelance basis, in addition to proving monthly income of at least four minimum wages, the equivalent today of €3,040 (R$16,300 ).

This is a profile of purchasing power well above the Portuguese average. According to data from the Ministry of Labor, Solidarity and Social Security, 56% of Portuguese workers received wages of less than €1,000 (R$5,366) in 2022. Among young people up to 30 years old, this percentage rises to 65%.

For Gonçalo Hall, from the Association of Digital Nomads, criticism of remote professionals has been used as a kind of political tool among certain groups. “There is a housing crisis that is very complex. The ultra-right decided to criticize immigration, while the ultra-left went to the digital nomads. Ironically, two very different sides took up the same issue to try to find excuses and have some political gain with what is happening in Portugal”, he says.

Despite Lisbon’s prohibitive prices, Hall points out that Portugal has several other attractive destinations for travellers. One of the biggest highlights is the island of Madeira, which has created a kind of village dedicated to digital nomads.

In addition to a modern and equipped free coworking space, the region has developed a wide project to welcome travelers, including special integration events and engagement of local business owners in the initiative.

“For nomads, the existence of a community is fundamental”, evaluates Hall, who collaborated in the implementation of the project for digital nomads in Pipa, in Rio Grande do Norte. “It’s a way to combat loneliness for those traveling alone. Someone who spends a month or two in a city has a lot of difficulty making friends with the locals, because they already have the social structures, the friends. That’s why nomadic communities are so important.”