Athens, Greece — On Friday, Greek lawmakers commenced discussions on new legislation aimed at enhancing regulations for short-term rentals in response to a significant spike in tourism. The proposed amendments include prohibiting the leasing of transformed storage areas and windowless basements.
The initiative seeks to eliminate rental listings from platforms for converted warehouses, subterranean spaces, and previous industrial sites, regardless of their current hospitality modifications. “Basement apartments are being prohibited; rentals must be designated as primary residential units and should provide natural light, proper ventilation, and air conditioning,” announced Tourism Minister Olga Kefalogianni during a prior interview with state television.
She emphasized the introduction of mandatory operational and safety standards, indicating that these measures are essential for maintaining the quality of the tourism experience. “Our focus is on sustaining a long-term, high-quality trajectory for Greek tourism, rather than merely pursuing record numbers each year,” she stated.
This proposed legislation aligns with a current one-year suspension on new short-term rental applications in sought-after districts of Athens, such as Kolonaki, Koukaki, and Exarchia. Any breaches of this rule could incur a hefty fine of up to 20,000 euros (approximately $20,500).
While vacation rentals contribute substantially to Greece’s crucial tourism sector—accounting for about 13% of the nation’s GDP in 2023—they have concurrently intensified the burden of living expenses, linked to soaring rents amid the wider cost of living crisis. The government aims to strike a balance between the advantages of tourism and housing accessibility by providing tax incentives to property owners inclined to transition away from short-term rentals.
Looking ahead, Greece anticipates an unprecedented tourism revenue of 22 billion euros ($22.7 billion) in 2024, with an expected influx of 35 million tourists, according to government projections. A study by a national hoteliers association revealed that the number of short-term rental rooms was approximately on par with hotel accommodations nationally in 2023, nearly doubling in central Athens. The association has been advocating for stricter control over properties rented out via online platforms such as Airbnb.
During the initial debate on the matter, several opposition lawmakers criticized the center-right government for overlooking the social implications and resource strain brought on by rapid tourism growth. They urged for more robust rental regulations. “Your policies are facilitating an overload of short-term rentals in tourist-friendly areas, fundamentally altering neighborhood dynamics and displacing long-term residents,” remarked leftist lawmaker Kalliopi Vetta in parliament.
She further contended, “The unchecked growth of tourism is compromising our environment and social fabric, driven purely by profit motives.” The draft legislation, which encompasses detailed safety and operational requirements for vacation rentals, is scheduled for a vote later this month.
