The Greek capital has introduced a one-year freeze on new short-term rental registrations to tackle its escalating housing shortage. This initiative seeks to reduce living costs and alleviate tourism-related pressures on local neighborhoods.

Short-Term Rental Boom Sparks Criticism

In 2024, the number of beds in short-term rental units surged to 1.022 million by August, overtaking the 887,740 beds in Greek hotels, according to Ekathimerini. The hotel industry has strongly criticized this trend, accusing platforms like Airbnb of diverting customers. Residents claim that increased tourist demand has driven housing prices higher, especially in working-class neighborhoods.

The new legislation halts new registrations for a year in high-demand districts such as Kolonaki, Koukaki, Pangrati, and Exarchia. Property owners had until 31 December to declare existing rentals. Additionally, the law offers tax incentives for landlords transitioning from short-term to long-term leases.

Balancing Tourism Growth and Housing Needs

Greek Prime Minister Kyriakos Mitsotakis defended the measures in a Thessaloniki address, emphasizing the need to balance economic benefits from tourism with housing availability. “The character of our neighborhoods must be safeguarded, and the pursuit of profit should not overshadow the right to housing,” he stated.

Recognizing the economic contributions of short-term rentals, Mitsotakis stressed the importance of addressing their social impact. “Many cities face challenges in regulating short-term rentals. We are taking essential first steps and are ready to do more if necessary,” he added.

Athens had earlier implemented regulations in 2024, including mandatory licensing for landlords with more than two properties and stringent health and safety standards. Critics, however, argue these measures were insufficient. The new ban signifies a stronger commitment to resolving housing challenges while ensuring sustainable tourism practices.