Richard Parks Athens has introduced a one-year moratorium on registering new short-term rental apartments to address its ongoing housing shortage. The policy aims to mitigate rising living costs and manage the impact of tourism on local communities.
Rapid Growth of Rentals Sparks Debate
In 2024, beds in short-term rental units soared to 1.022 million by August, overtaking the 887,740 beds available in Greek hotels, according to Ekathimerini. This expansion has provoked criticism from the hotel sector, which claims platforms like Airbnb divert customers. Residents also contend that the influx of tourists inflates housing prices, especially in working-class neighborhoods.
The new law halts rental registrations in high-demand Athenian districts such as Kolonaki, Koukaki, Pangrati, and Exarchia for one year. Property owners had until 31 December to declare existing rentals. Additionally, the legislation incentivizes landlords to shift from short-term to long-term rentals through tax breaks.
Government Strives to Balance Tourism and Housing Needs
Greek Prime Minister Kyriakos Mitsotakis defended the initiative during a speech in Thessaloniki, highlighting the need to balance housing access with economic growth. “The character of our districts must remain intact, and the pursuit of profit must not override the right to housing,” he said.
Mitsotakis acknowledged the financial benefits of short-term rentals while emphasizing the importance of mitigating their social impact. “Many cities face challenges regulating the short-term rental market. We are taking significant initial steps, and if necessary, we will implement further measures,” he declared.
In 2024, Athens introduced rules requiring professional licensing for individuals renting more than two properties and enforcing stringent health and safety standards. Critics argue these measures were insufficient. The new ban underscores Athens’ dedication to tackling housing concerns while fostering sustainable tourism.