Incentives to Return Properties to Long-Term Leases
With bookings on Airbnb now surpassing hotel reservations, and Greece ranking as the fourth most expensive country globally, the government is gearing up to introduce a series of measures. These include fines and favorable conditions for small islands and incomes up to 12,000 euros.
The Impact of Unregulated Short-Term Rentals
Aiming to alleviate the housing crisis in Athens and other large urban centers, the government seeks to address the distortions caused by the unchecked growth of short-term rentals in the real estate market.
In a bid to prevent a housing crisis similar to those seen in other major European cities, the government is considering measures such as capping the number of rental days. This is expected to increase the availability of homes for long-term rental and help lower rental prices.
Prime Minister’s Stance
Prime Minister Kyriakos Mitsotakis has emphasized that the measures target those who have turned Airbnb into a business, not property owners using it to supplement their income. “Let’s see in Athens mainly to what extent we can logically limit short-term leasing to free up more properties for long-term leasing. If someone has more than three short-term rental properties, they should be treated as a business,” said Mitsotakis.
Previous Interventions and Ongoing Studies
The government has already implemented interventions in both Airbnb and the Golden Visa program and is considering further measures based on feedback from market players and the opposition. “We are studying the Airbnb market to see how much we can limit short-term rentals in Athens and free up properties for long-term rentals,” Mitsotakis stated.
Upcoming Measures
Final decisions are expected in September after consultations and analysis of the summer tourism season’s data. The focus is likely to be on limiting the number of days a property can be rented out short term.
Minister of Finance’s Insights
Last March, Finance Minister Kostis Hatzidakis hinted at these measures during a conference. He noted the impact of tourism and Airbnb on real estate prices, stating, “We are monitoring the matter. We will see how the new law works in the summer and discuss it again in September.”
Potential Regulations
The government is considering a 90-day cap per calendar year on short-term rentals, particularly in large urban centers like Athens. For smaller islands with populations under 10,000, the limit might be reduced to 60 days per year, with different zones having varied rental ceilings.
Conclusion
The government’s aim is clear: to restore balance in the housing market by regulating short-term rentals and ensuring more properties are available for long-term leases. This approach is expected to address the current housing challenges and provide a fairer playing field for all stakeholders involved.
