Greece is to battle the housing crisis by further regulating Airbnb and house rentals as of 2025, imposing restrictions on short-term leasing while providing incentives for long-term rentals to owners.
As rental prices amount to an entire month’s salary in certain areas in Athens, there is a shortage of affordable houses for rent. The government has been forced to take new measures to battle the housing crisis amid a public outcry.
The measures aim at curbing the oversupply of short-term rentals in order to stimulate the long-term rental market. At the same time, they aim at aligning as much as possible the obligations of short-term rental owners with those of hotel owners, the Athens-Macedonian News Agency reports.
The changes come at a time when Greece is in the middle of a serious housing crisis. Long-term rent prices are skyrocketing as many owners prefer to offer their properties as short-term rentals on platforms such as Airbnb.
The new regulations, as assessed by the pertinent ministries, aim to restore balance in the real estate market. They offer incentives for long-term leasing to owners and impose stricter regulations on short-term leasing with emphasis on safety and quality of service.
In this context, stricter rules are introduced for the licensing and operation of short-term rentals, while significant incentives will be given to owners who choose to switch to long-term rentals.
Measures to control the housing crisis
- Restriction on new short-term rentals: There will be a temporary freeze on the issuance of new permits for short-term rentals in certain Athens areas. These include the city center, Pagrati and Neos Kosmos. There will be no new permits for at least one year, with the possibility of extension.
- Long-term rental incentives: Landlords who convert their properties from short-term to long-term rentals will be exempt from income tax for three years. The measure will apply exclusively to individual owners rather than businesses. The estimated revenue loss for the state will be around three million euros in 2025 and thirteen million euros per year for the years 2026 to 2028.
- Strict specifications for short-term rental: Short-term rental accommodations will be subject to strict minimum requirements for operation, including the establishment of a minimum floor area, ban for use of underground spaces, mandatory fire safety, and safety certifications by specialist engineers. The specifications also include liability certification, installation of security systems, fire extinguishing systems, smoke detectors, and regular disinfection of accommodation before each new tenancy.
- Stricter requirements for apartment buildings: Apartment buildings will require the elevator to be certified for commercial use, while restrictions will be placed on the number of accommodations available for short-term rental.
The new regulations are expected to be implemented before the start of the 2025 summer season, setting new standards for short-term rentals in Greece and creating a more balanced and secure real estate market.
While these changes aim to improve the quality of accommodation and strengthen long-term tenancy, their ultimate impact on the housing crisis will depend on the efficiency of their implementation and the ability of the market to adapt to the new conditions.