Greece has introduced a one-year ban on new short-term rentals in Athens in a bid to resolve a national housing crisis. Effective from 1 January 2025, the measure sees a moratorium on new short-term rental registrations in various districts across the capital.
The move comes against a background of huge growth in short-term rental units in Greece, despite a suite of moves to make it harder for property owners to rent their homes ad-hoc: owners with more than two properties for rent were required to register as professionals, as well as adhere to health and safety regulations and liability insurance rules.
But by August 2024, short-term rentals in Greece numbered in excess of a million – a significant milestone as it was the first time the supply of short-term rental beds had outstripped the 887,740 hotel beds around the country, according to reports in local newspaper Ekathimerini.
Hotel industry alarm and housing shortage
With alarm about unfair competition from platforms such as Airbnb spreading among hoteliers, and local residents complaining that incoming tourists were pricing them out of the housing market even in working class areas, legislation was passed in November 2024 to curb the problem.
This meant property owners in a range of Athenian districts, including Kolonaki, Koukaki, Pangrati and Exarchia, wanting to rent out their asset short-term needed to ensure they had registered before the freeze on licences at the start of 2025. Owners already renting out their homes to short-term occupants were also incentivised through a tax-break scheme to de-list their properties and instead make them available for long-term tenants.
Right to profit versus right to housing
It’s a difficult line to tread for Greek authorities who do not want to dampen a tourist sector that contributes significantly to the nation’s economy. They recognise that many people are reliant on the extra income property rentals provide and that many resorts struggle in the low season. But, like many destinations around the world, Greece is seeking a better balance between revenues and the burden that short-term occupants place on local infrastructure.
Announcing the changes and increases in disembarkation charges for cruise ship passengers, Greek Prime Minister Kyriakos Mitsotakis pointed out back in September that “The character of our districts must not be altered, nor should the right to profit of one person prevent the right to housing of another.” He also signalled that further measures could follow, calling the most recent changes “steps” towards better regulation of the short-term rental market. “If we think more are needed, we will not hesitate to do them,” he has promised.
