The regulation establishes the prohibition of new establishments in areas considered "absolute containment": Bairro Alto/Madragoa, Castelo/Alfama/Mouraria, Colina de Santana, Baixa and Avenida da Liberdade/Avenida da República/Avenida Almirante Reis.

However, exceptional authorisations may be granted for new establishments "when they relate to the rehabilitation of buildings in ruins or the complete rehabilitation of buildings that have been completely vacant for more than three years and when they are considered of special interest to the city because they give rise to buildings for multifunctional use, in which the local accommodation is integrated in social or cultural projects of local development or includes the offer of rent at affordable prices granted under the Municipal Regulation on the Right to Housing".

According to the regulation, the absolute containment areas correspond to areas that have "a ratio between short-term let accommodation establishments and the number of dwellings equal to or higher than 20%".

The regulation also establishes a relative containment area, which now has a limited local accommodation register. Graça and Bairro da Colónias are included in this area.

The Lisbon Municipal Assembly approved the document on Tuesday by majority vote.

On 1 September there were 22,430 local lodgings in Lisbon, with the areas of Bairro Alto/Madragoa, Castelo/Alfama/Mouraria, Baixa, and Avenidas Liberdade, República and Almirante Reis concentrating more than half the establishments.

Of the more than 20,000, almost 17,000 were apartments and little more than 5,200 were classified as lodging/hostel. About 200 local lodgings were in houses and there were still 47 rooms.

According to the 2011 Census numbers, there are around 325,000 dwellings in Lisbon.