ATHENS – A new law imposing strict limits on short-term rentals in central Athens came into effect on Wednesday, as authorities strive to address the growing housing shortage affecting permanent residents.
The legislation, passed in November, introduces a one-year moratorium on registering new properties for short-term rental purposes in over a dozen central neighborhoods, including high-demand areas such as Kolonaki, Koukaki, Pangrati, and Exarchia. Property owners had until December 31, 2024, to declare new short-term rental listings in these districts. Those who violate the ban face hefty fines starting at €20,000 ($20,800).
This regulatory move targets the proliferation of short-term rental platforms like Airbnb and Vrbo, which have significantly altered the real estate landscape in Athens. Data from US-based rental tracker AirDNA reveals nearly 18,000 properties in the Greek capital are currently listed for short-term rental purposes. The demand for these accommodations peaks during Greece’s lucrative summer tourism season.
In tandem with the restrictions, the government is incentivizing landlords to pivot from short-term to long-term rentals by offering tax breaks. This initiative seeks to alleviate the dual pressures of limited housing availability and escalating property prices, particularly in working-class neighborhoods.
The decision comes after years of mounting public concern over the adverse effects of the short-term rental boom. Critics argue that the trend has not only displaced local residents but also driven property values beyond the reach of many Athenians.
While the new measures aim to strike a balance between fostering tourism and protecting housing rights, their impact will be closely monitored over the coming year. Adjustments may be made to further refine the policy and ensure it meets its dual objectives of housing stabilization and economic sustainability.
Athens now joins other European cities that have enacted similar measures to curb the unintended consequences of short-term rental platforms on urban housing markets.
