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Greece Tightens Rules on Short-Term Rentals Amid Housing Crisis

Петър Низамов Petar Nizamov by Петър Низамов Petar Nizamov
October 6, 2025
in 2025 News, 2025 News, Analyses, Investigations, World News, World News
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The neighborhood of plaka below the acropolis in athens, greece. How is greece changing short-term rentals?
Greece is introducing stricter criteria for short-term rentals as locals struggle to find affordable housing due to the expansion of platforms like Airbnb. Credit: Greek Reporter

Greece’s short-term rental market is entering a new phase with the introduction of stricter regulations for properties listed on platforms such as Airbnb.

The updated legal framework aims to promote fair competition, improve service standards, and balance housing availability between tourism and residential needs, addressing pressures from the country’s ongoing housing crisis.

Tourism Minister Olga Kefalogianni, who presented the legislation, stated that the rules ensure clear and fair competition within the sector while enhancing the quality of tourism services. She emphasized that the framework recognizes the role of short-term rentals in Greece’s tourism industry, while also protecting the interests of hotels and local residents.

What does Greece’s new short-term rentals landscape look like?

Greece’s short-term rental market is now subject to stricter oversight and standards under the new law. Compliance checks will be conducted by the Ministry of Tourism and the Independent Authority for Public Revenue (AADE), with penalties aligned with those for traditional tourist accommodations. The AADE has already contacted all registered property managers holding a Property Registry Number (AMA), and a detailed register of technical specifications has been issued.

Starting October 1st, properties that are not classified as main-use buildings under urban planning rules are being removed from the AADE’s Short-Term Rental Property Registry and will lose their registration number. Rental platforms, including Airbnb, will be notified of non-compliant properties. The government estimates that five to ten percent of listings will immediately exit the market due to non-compliance.

By the end of the year, the government will determine which additional areas beyond the first three Athens districts (1st, 2nd, and 3rd Dimotiko Diamerisma) will face restrictions on new short-term rentals. Policies are also being considered to encourage property owners to return units to the long-term rental market, aiming to alleviate rising rents for locals.

Under the new rules, eligible properties must meet upgraded minimum safety and quality requirements, including:

  • Natural lighting, ventilation, and air conditioning

  • Civil liability insurance

  • Electrical safety certification

  • Fire extinguishers and smoke detectors

  • Pest control certificates

  • First aid kits

  • Clearly displayed emergency contact information

These measures are intended to enhance safety and service quality, while ensuring short-term rentals coexist fairly with local residents and the hotel industry.

Still expanding…

Despite the tighter framework, the short-term rental market continues to grow at record levels in the country.

According to the Institute of the Greek Tourism Confederation (INSETE), available short-term rental listings reached 247,000 in August 2025, marking a new historic high. The number of available beds also rose, exceeding 1.08 million, an increase of 57,000 compared with July 2024.

Foreign visitors accounted for over 90 percent of total demand during the peak summer months, highlighting Greece’s strong international appeal. Occupancy rates remained high, averaging 58 percent in August, slightly below the 59 percent recorded a year earlier. The average stay length in August increased to 4.2 nights, continuing an upward trend since spring.

Greece’s tightening of short-term rental regulations comes amid a deepening housing crisis, with soaring rents for locals and limited affordable options in major cities. The rapid expansion of platforms such as Airbnb has reduced long-term rental supply, driving up prices and displacing residents from central neighborhoods.

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