The Greek government is considering extending a ban on short-term rentals. Prime Minister Kyriakos Mitsotakis, speaking at the Thessaloniki International Fair, spoke on the topic of holiday lets
Holidays to parts of Greece may soon get a little trickier if Athens goes ahead with a new crackdown.
The Greek government is considering extending restrictions on short-term rentals to alleviate the strain on the nation’s property market. Prime Minister Kyriakos Mitsotakis, speaking at the Thessaloniki International Fair, said that the possibility of prolonging the ban on new short-term lets in three Athens districts for another year was under consideration.
He also suggested that the ban could be expanded to other regions of the country. To incentivize more property owners to switch from short- to long-term leases, a three-year tax exemption would also be extended in proposed legislation.
“I am open to extending the ban on the inclusion of new homes in short-term rentals outside of Attica, to other popular destinations, and it is something we will decide on in the next one to two months,” the prime minister said.
“The problem has arisen in recent years and is a result of a rapidly growing economy. The problem for the tenant is a benefit for the landlord. We need to see both sides.”
The abundance of holiday lets in the Mediterranean country is causing issues in the housing market. According to ekathimerini.com, official 2024 statistics indicate that the average number of properties available for short-term rentals per 1,000 permanent residents in Greece is 46.
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In the Cyclades, this figure rises to 611 per 1,000 residents, while in the Ionian Islands it stands at 340, and in the Dodecanese at 125.
The Greek government has been wrestling with a surge in short-term lets, driven by platforms like Airbnb, and the urgent need for local housing, reports the Express.
When the ban on short-term rental licences was announced in 2024, Greek Tourism Minister Olga Kefalogianni cautioned that it could be extended beyond a year. The ban came into effect on January 1.
Tourism brings in billions for Greece, with the country’s beaches, hot weather and warm seas attracting hundreds of thousands of visitors annually. During the nation’s debt crisis following the 2008–09 financial meltdown, residential property values crashed by 42%.
They have since bounced back to the extent where homeownership has become an unlikely prospect for some residents trying to climb onto the property ladder. Estate agent Engel & Völkers Germany reports that Greek prices have kept climbing since hitting rock bottom in 2017, with this upward trajectory persisting throughout this year.
The estate agent has noted that Greece still provides “affordable” and “moderate” pricing compared to other European destinations.
Engel & Völkers, highlighting the dilemma facing the Greek administration, indicated that predictions for the coming year stay “positive”. It continued: “Greece is increasingly positioning itself as a safe and value-stable destination for investments in vacation and lifestyle properties.”
In June Mr Mitsotakis made a commitment to address overcrowding and manage the number of visitors on the country’s islands, including limiting the number of cruise ships allowed to dock.
Mr Mitsotakis acknowledged that the Cycladic Islands were “clearly suffering”, amid complaints from locals about the effect on their daily lives and the cost of living, according to Bloomberg reports.
The Greek Prime Minister has highlighted Santorini as the “most sensitive” to overcrowding, with around 800 cruise ships docking last year, closely followed by Mykonos with 750 in 2023.
In April last year, Athens was rocked by furious protests, with demonstrators reportedly shouting: “They are taking our houses while they live in the Maldives”.