Short-term rentals in Greece saw a significant increase in 2024, with the number of available beds in rental units surpassing those in the country’s hotels. This surge has raised concerns among permanent residents about the impact on housing availability and affordability. The Greek government has implemented a one-year ban on registering new apartments for short-term rentals in certain districts of Athens, including popular areas like Kolonaki, Koukaki, Pangrati, and Exarchia. The legislation also offers tax breaks to property owners who transition from short to long-term rentals. In the past, the government has introduced regulations such as mandatory licensing and health and safety requirements for short-term rental properties, but critics argue that these measures may not be sufficient in the long run.
The hotel sector in Greece has criticized the rise of short-term rentals, particularly platforms like Airbnb, for potentially taking away business. Additionally, local residents have expressed concerns about how short-term rentals contribute to a housing crisis and elevate prices in their neighborhoods, especially in working-class areas. The ban on registering new apartments for short-term rentals in Athens aims to address these issues and help alleviate rent pressures for permanent residents. Prime Minister Kyriakos Mitsotakis emphasized that the measures were not meant to demonize the short-term rental industry but to strike a balance between property owners’ profits and residents’ housing rights.
In 2024, Athens introduced regulations requiring individuals renting out more than two properties to obtain a professional license and adhere to strict health and safety standards. Properties must meet ventilation and liability insurance criteria to ensure the safety and quality of short-term rental accommodations. Mitsotakis highlighted the importance of regulating the short-term rental market to preserve the character of local neighborhoods and ensure housing availability for residents. While acknowledging the economic benefits of short-term rentals for property owners and the tourism industry, the government is committed to addressing housing issues and maintaining a balance between short-term rental profitability and residents’ housing needs.
The Greek government’s efforts to regulate short-term rentals in Athens reflect broader global challenges in managing the impact of platforms like Airbnb on housing markets and local communities. Cities and countries worldwide are grappling with how to strike a balance between the economic benefits of short-term rentals and the need for affordable, stable housing for residents. Greece’s approach to implementing a temporary ban on registering new apartments for short-term rentals and introducing regulations to ensure the quality and safety of rental properties demonstrates a commitment to addressing these complex issues. Mitsotakis emphasized that the government would not hesitate to take additional steps if needed to further regulate the short-term rental market and uphold residents’ housing rights.
The short-term rental market in Greece, particularly in popular tourist destinations like Athens, plays a significant role in the country’s economy and tourism sector. However, the rapid growth of short-term rentals has raised concerns about their impact on housing availability and affordability for permanent residents. The government’s decision to impose a temporary ban on registering new apartments for short-term rentals and introduce regulations to improve the quality and safety of rental properties reflects a commitment to addressing these challenges. Mitsotakis reiterated the importance of preserving the character of local neighborhoods and ensuring housing availability for residents while balancing the economic benefits of short-term rentals. Moving forward, Greece may continue to explore additional measures to regulate the short-term rental market and support sustainable housing practices in the country.
