One of Europe’s most enchanting cities and a favourite among British travellers has taken a bold step to combat overtourism and address a housing crisis.
Starting this week, Athens has enacted a one-year ban on registering new short-term rental properties in several of its most popular districts, including Kolonaki, Koukaki, Pangrati, and Exarchia.
The measure aims to kerb the explosive growth of platforms like Airbnb, which in 2024 saw the number of available short-term rental beds surpass those in Greece’s hotels for the first time.
By August, the country counted 1.022 million beds in short-term rentals compared to 887,740 in traditional hotels, according to Ekathimerini.
While short-term rentals have become a lucrative aspect of Greece’s booming tourism industry, the trend has intensified housing shortages for permanent residents and inflated rental prices, particularly in working-class neighbourhoods.
Prime Minister Kyriakos Mitsotakis defended the decision.
He said it was important to balance tourism with the rights of local residents.
“The character of our districts must not be altered, nor should the right to profit of one person prevent the right to housing of another,” he said.
Approximately 6.4 million tourists flock to Athens annually, drawn by iconic landmarks like the Acropolis and other ancient marvels.
Tourism is a cornerstone of Greece’s economy, contributing nearly one-fifth of the nation’s GDP in 2022.
However, this heavy reliance has fuelled a significant housing crisis in the capital.
Housing costs consume over 40 percent of disposable income in Greece, higher than any other European country. As a result, seven in ten Greeks under 34 still live with their parents, unable to afford independent housing.
The rise of short-term holiday rentals has exacerbated the problem, with properties converted into Airbnbs or co-working spaces for tourists and digital nomads.
This trend has surged by a staggering 500 percent in less than a decade, forcing many Athenians to relocate from their home city.