Athens Imposes Short-Term Rental Ban to Combat Housing Crisis

The Rise of Short-Term Rentals in Athens

In recent years, Athens has witnessed a significant increase in short-term rental properties, with platforms like Airbnb gaining popularity among tourists. In 2024, the number of beds available in these rental units exceeded those in traditional hotels, reaching over a million by August. This surge has sparked concerns among local residents and the hotel industry, who argue that short-term rentals are exacerbating the housing crisis and driving up living costs in the city.

Government’s Response to the Housing Shortage

In response to these challenges, the Greek government has implemented a one-year ban on registering new short-term rental properties in several districts of Athens. This measure, effective from January 1, 2025, aims to alleviate the housing shortage for permanent residents. The affected areas include popular neighborhoods such as Kolonaki, Koukaki, Pangrati, and Exarchia. The legislation, approved in November, required homeowners to declare their properties by the end of December and offers tax incentives for those transitioning from short-term to long-term rentals.

Balancing Tourism and Housing Needs

Greek Prime Minister Kyriakos Mitsotakis emphasized that the government’s intention is not to demonize the short-term rental industry, which significantly contributes to tourism and property owners’ income. Instead, the measures are designed to ease rental pressures and increase housing availability for locals. Mitsotakis acknowledged the global struggle to regulate short-term rentals and expressed the government’s willingness to take further steps if necessary.

Previous Attempts and Future Outlook

This is not the first time Athens has attempted to regulate short-term rentals. In 2024, the city introduced regulations requiring professional licensing for those renting more than two properties and enforcing health and safety standards. Critics, however, argue that these measures have been insufficient in addressing the long-term impact on housing availability. As Athens continues to navigate the balance between tourism and housing needs, the effectiveness of the current ban will be closely monitored.