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Airbnb’s Impact On Athens: Greece Takes Aim At Holiday Rentals With New Regulations

Holiday rentals, particularly those facilitated by platforms like Airbnb, are reshaping Athens in ways that have sparked heated debates among lawmakers, hoteliers, and residents. With rental properties now outnumbering hotel rooms in the Greek capital, the government is proposing strict new rules to address the impact of over-tourism and rising housing costs.

Proposed Restrictions On Holiday Rentals

Greece’s Tourism Minister, Olga Kefalogianni, has introduced draft legislation aimed at tightening regulations on short-term rentals. Key provisions include:

  • Banning unsuitable spaces: Renovated warehouses, basements, and former industrial properties would no longer qualify as rental spaces. Only properties serving as primary residences with natural light, ventilation, and air conditioning will be allowed.
  • Minimum safety standards: Rentals must meet operational and safety criteria to ensure quality and sustainability.
  • Temporary licensing freeze: A one-year suspension on issuing new short-term rental licences in Athens neighbourhoods like Kolonaki, Koukaki, and Exarchia. Violations could result in fines of up to €20,000.

“Our focus is on creating a sustainable, high-quality tourism product,” Kefalogianni told state media. “It’s not about breaking records every year but ensuring long-term development.”

The Economic And Social Trade-Offs

Tourism is a cornerstone of Greece’s economy, contributing 13% of GDP in 2023. Short-term rentals have played a significant role in this growth, helping the country achieve a projected record €22 billion in tourism revenue for 2024, with an expected 35 million tourist arrivals.

However, this success comes at a cost. The proliferation of holiday rentals has driven up rents, exacerbating the cost-of-living crisis for residents. A study by the National Hoteliers Association found that the number of short-term rental rooms was nearly double that of hotel rooms in central Athens, intensifying calls for regulatory intervention.

Hoteliers And Lawmakers Weigh In

Greek hoteliers have been vocal in their criticism, arguing that platforms like Airbnb create unfair competition and contribute to overtourism. Opposition lawmakers have echoed these concerns, accusing the government of prioritizing profit over the well-being of residents.

“You are allowing the concentration of short-term rentals in tourist-heavy areas, drastically transforming neighbourhoods and displacing permanent residents,” said Kalliopi Vetta, a left-wing parliamentarian. “This unchecked expansion comes at the expense of both the environment and society.”

Balancing Tourism And Local Needs

To address these challenges, the government plans to incentivize property owners to transition away from short-term rentals by offering tax breaks. The goal is to strike a balance between the economic benefits of tourism and housing accessibility for locals.

As the debate continues, the legislation represents a pivotal step in Greece’s efforts to regulate the booming holiday rental market while preserving the character and livability of its cities. The bill, which includes new operational and safety requirements, is expected to go to a parliamentary vote later this month.

This ongoing discussion reflects a broader challenge faced by cities worldwide: how to harness the economic power of platforms like Airbnb without compromising local communities.

SEC Drops Lawsuit Against Gemini: A Major Turning Point In Crypto Regulation

SEC Dismisses Legal Action Against Gemini

The Securities and Exchange Commission has formally withdrawn its lawsuit against Gemini, the prominent crypto exchange founded by twins Cameron and Tyler Winklevoss. The move follows a joint court filing in which both the regulator and Gemini sought dismissal of the case that centered on the collapse of the Gemini Earn investment product, a debacle that left investors without access to their funds for 18 months.

Settlement And Regulatory Reassessment

In a significant development, a 2024 settlement between New York and Gemini ensured that investors recovered one hundred percent of their crypto assets loaned through the Gemini Earn program. The legal reprieve comes on the heels of actions initiated by New York Attorney General Letitia James, who accused Gemini of defrauding investors.

Political Backdrop And Industry Implications

This dismissal reinforces a broader trend of regulatory leniency toward the crypto sector noted during the Trump administration, which saw the SEC dismiss, pause, or reduce penalties in more than 60 percent of its pending crypto lawsuits. Meanwhile, Gemini’s recent public offering filing underscores its ambitions to solidify its status as a major player in the evolving digital asset market.

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