The Greek capital of Athens has implemented a one-year ban on registering new short-term rental apartments, aiming to address a housing crisis for permanent residents. This measure comes amidst concerns that the surge in short-term rentals has exacerbated housing shortages and raised living costs in local neighborhoods.
Surge in Short-Term Rentals Sparks Criticism
In 2024, the number of beds available in short-term rental units reached 1.022 million by August, surpassing the 887,740 beds in Greece’s hotels, according to Ekathimerini. This growth has drawn criticism from the hotel sector, which argues that platforms like Airbnb divert business away from traditional accommodations. Permanent residents have also expressed frustration, claiming that the influx of tourists has increased local housing prices, particularly in working-class neighborhoods.
The legislation, effective Wednesday, imposes a one-year freeze on new rental registrations in popular Athenian districts such as Kolonaki, Koukaki, Pangrati, and Exarchia. Property owners in these areas had until 31 December to declare their existing rentals. The law also offers tax incentives for landlords who transition from short-term to long-term rentals.
Government Balances Tourism and Housing Needs
Greek Prime Minister Kyriakos Mitsotakis defended the measures during a speech in Thessaloniki, emphasizing the need to balance housing availability with tourism growth. “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 stated. He acknowledged that short-term rentals contribute significantly to the economy but stressed the importance of easing rental pressures and increasing housing supply.
Mitsotakis added, “Many cities and countries are struggling with how to regulate the short-term rental market. We are taking some important first steps in that direction. If we think more are needed, we will not hesitate to do them.”
Athens previously introduced regulations in 2024, including mandatory licensing for individuals renting more than two properties and stringent health and safety requirements. Critics argue these measures have limited long-term effectiveness, but the new ban demonstrates the government’s commitment to tackling the housing crisis while supporting sustainable tourism.