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Athens limits short-term rentals for one year in bid to alleviate housing shortage
02.01.2025 - 23:39 / euronews.com / Kyriakos Mitsotakis
A one-year ban on registering new apartments for short-term rentals came into effect on Wednesday in the Greek capital of Athens, as authorities seek to find solutions to a housing shortage for permanent residents.
In 2024, the number of available beds in short-term rental units reached 1,022 million in the months up to August -- overtaking the 887,740 beds in the country's hotels for the first time according to local newspaper Ekathimerini.
But the surge of short-term rentals has not come without criticism from the country's hotel sector who argue that companies such as Airbnb are taking away business.
Permanent residents have said that short-term rentals exacerbate a housing crisis and the influx of tourists into local neighbourhoods has raised prices for those living there -- particularly in working-class neighbourhoods.
The law which has taken effect on Wednesday sets a one-year ban on registering new apartments in several Athenian districts including in-demand areas such as Kolonaki, Koukaki, Pangrati and Exarchia.
The legislation, which was approved in November, gave homeowners in the areas until 31 December to declare their properties and also offers tax breaks to property owners who switch from short to long-term rentals.
It's not the first time Greek authorities have tried to clamp down on short-term rentals. In 2024, Athens introduced a series of regulations including mandatory professional licensing for individuals renting out more than two properties and strict health and safety requirements for those renting.
Properties must also meet various ventilation and liability insurance standards, with critics arguing that the regulations are ineffective long-term.
Greek Prime Minister Kyriakos Mitsotakis justified the measures at a speech in Thessaloniki in September, saying his government had no interest in demonising the short-term rental business but the measures were designed to "ease rent pressures and increase housing availability."
He acknowledged that short-term rentals were a significant source of revenue for property owners and a driver of tourism in the country which is one of its biggest and most profitable industries.
“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,” Mitsotakis said.
“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.”
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