The city of Athens has enacted a one-year suspension on registering new short-term rental apartments to combat a growing housing crisis. This initiative seeks to address the rising cost of living and the impact of tourism on local neighborhoods.
Short-Term Rental Boom Draws Sharp Criticism
In 2024, the number of beds in short-term rental units surged to 1.022 million by August, surpassing the 887,740 beds in Greece’s hotels, according to Ekathimerini. This rapid growth has triggered backlash from the hotel industry, which accuses platforms like Airbnb of diverting business. Residents argue that the influx of tourists has driven up housing prices, particularly in working-class areas.
The new legislation imposes a one-year freeze on rental registrations in sought-after Athenian districts such as Kolonaki, Koukaki, Pangrati, and Exarchia. Property owners in these areas had until 31 December to register their existing rentals. The law also offers tax incentives for landlords who transition from short-term to long-term leasing.
Balancing Economic Growth and Affordable Housing
Greek Prime Minister Kyriakos Mitsotakis supported the measures in a speech in Thessaloniki, emphasizing the need to balance tourism benefits with housing availability. “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.
Acknowledging the economic significance of short-term rentals, Mitsotakis highlighted the government’s intent to ease rental pressures while sustaining tourism growth. “Many cities and countries are struggling with how to regulate the short-term rental market. We are taking important first steps. If more actions are needed, we will not hesitate,” he added.
In 2024, Athens had already implemented regulations requiring professional licenses for individuals renting out more than two properties and enforcing strict health and safety standards. Critics argue that these earlier measures have had limited effectiveness. The new ban reinforces the city’s commitment to addressing housing challenges while ensuring sustainable tourism development.