Breaking news

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

by THEFUTURE.TEAM

January 21, 2025

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:

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

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.

The Future Forbes Realty Global Properties

Cyprus Still Offers Relative Value As Mediterranean Holiday Costs Rise

Cyprus is not the cheapest holiday destination in the Mediterranean, but it remains more affordable than many of its best-known rivals on two of the costs travellers notice first: hotel accommodation and dining out.

A Competitive Position In A Costly Region

Latest Eurostat data puts Cyprus’s restaurant and accommodation price index at 85.2, against an EU average of 100. That places the island slightly below Spain and Greece, while Slovenia, Croatia, Malta, Italy and France all rank as more expensive destinations.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Portugal remains the standout value destination in the western Mediterranean, while Albania and Montenegro offer even lower prices further east.

The wider European picture follows a similar pattern. Bulgaria, Romania, Serbia, Bosnia and Herzegovina, and North Macedonia all rank below Cyprus for both overall consumer prices and hospitality costs. Germany, Austria, Belgium, the Netherlands and the Nordic countries are considerably more expensive.

The Broader Cost Of A Holiday

Looking beyond hotels and restaurants, Cyprus also remains cheaper than the EU average across the broader household basket, which includes groceries, clothing, transport and services. Overall prices were 10.8% below the bloc-wide benchmark. The island was less expensive than Spain, Malta, Italy and France, although Greece, Portugal and Croatia recorded even lower overall price levels.

A separate Euronews analysis reinforced that regional picture. It found that North Macedonia, Bosnia and Herzegovina, Romania, Bulgaria, Montenegro, Serbia and Albania were among Europe’s lowest-priced countries, while Iceland and Switzerland ranked at the opposite end of the scale, alongside several northern and western European economies.

Food bought in shops tells a slightly different story. On that measure, Cyprus sits almost exactly on the European average. Greece, Croatia and Malta all recorded higher grocery prices, while Spain offered slightly better value. The comparison highlights an important point for travellers: the cost of a holiday depends largely on how it is structured. A self-catering family, a couple dining out every evening and an all-inclusive guest are likely to have very different spending experiences in the same destination.

Where Holiday Bills Diverge Most

Some everyday purchases reveal even greater differences. According to the Euronews holiday comparison, alcoholic drinks in Greece were priced 54% above the EU average, while Croatia was more than one-third above the benchmark. Italy was 18.1% below the EU average and Spain 9.9% lower, while France and Portugal remained much closer to the European average.

Soft drinks also varied considerably. Italy recorded the lowest prices in the comparison, at 18.2% below the EU average, while Croatia was 33.5% above it. Seafood prices were more tightly grouped, ranging from 4.6% below the EU average in Portugal to 12.7% above it in Greece.

Transport costs showed a different pattern. France was the only country in the comparison where public transport prices exceeded the EU average. Portugal, Spain and Croatia were around 20% cheaper, while Greece remained just below the European benchmark.