How much have Golden Visa and Airbnb ultimately changed our lives? How much are they to blame for the rental boom and the upheaval in the housing market? In just five years, rents in Athens and Thessaloniki have risen by up to 40%, €500 apartments have become a rarity, and the search for housing for young people and families feels like a struggle for survival.

Behind this upheaval lie two factors that have marked the post-memorandum period: the Golden Visa program and the Airbnb phenomenon. Both bring investment, capital, and income, but with different impacts on the market. The question is which one ultimately has the most impact on the trahttp://Housing Crisis: Airbnb has hit its ceiling — Now comes … ProtoThema English https://en.protothema.gr › 2025/04/22 › housing-crisis-…jectory of rents and the ability to find housing.

The Golden Visa, launched in 2013 to attract foreign capital through the purchase of real estate, has so far brought over €5 billion into the Greek economy. Each transaction translates into direct tax revenues: transfer taxes, VAT on renovations and construction, professional fees, as well as fixed inflows from ENFIA and insurance policies. At the same time, investors pay renewal fees every five years, creating a permanent stream of public revenue. 90% of buyers do not live in the properties they buy, meaning that most are placed on the long-term market, boosting supply.

The positive impacts are multiple. Golden Visa has helped to reduce unsold properties, renovate old buildings and reinvigorate trades that had collapsed in the decade of the crisis. In 2024 alone, more than 5,000 new licenses were issued, with Athens, Glyfada, Thessaloniki and Crete being the dominant markets. The transactions are mainly in properties worth more than 400,000 euros, which means that they do not compete with the middle class house. Also, renovations of buildings that remained closed or abandoned have upgraded neighborhoods such as Koukaki, Kypseli and Piraeus, creating new hubs of economic activity.

But before the Golden Visa limits were raised from €250,000 to €500,000 – and in some high-demand areas, such as Attica and Thessaloniki, even to €800,000 – a wave of purchases had preceded it, temporarily diversifying the program’s profile. Many investors then rushed to catch up with the old conditions, buying small apartments and studios, mainly in central Athens.

For a brief period, the Golden Visa did indeed affect the middle housing sector, as the properties acquired were used either for short-term rentals or for housing foreign workers. With the adjustment of the limits, however, the program changed its focus and now focuses on higher-value properties, as well as old commercial or industrial buildings that are being converted into residential or tourist units. These are investments that would be difficult to carry out without the Golden Visa incentive, as they require high costs and technical expertise.

However, there are also negative aspects. In areas of high demand, the Golden Visa has led to an increase in sales prices, particularly in luxury properties. This means that, while not directly affecting the mass rental market, it is contributing to the overall increase in values and shifting seller expectations. Moreover, the concentration of investment in specific zones (southern suburbs, central Athens, Santorini, Chania) reinforces the spatial imbalance of the market, leaving other areas without investment interest.

In contrast to Golden Visa, Airbnb has evolved into a phenomenon with a much more immediate social impact. The short-term rentals have brought liquidity, boosted tourism and provided an outlet for thousands of small landlords. In 2024, declared revenues exceeded €900 million, but actual activity is estimated at over 1.5 billion, as a significant proportion operates off-platform. Many owners have found Airbnb a way to increase their income by tapping into properties that remained vacant or undervalued.

This success, however, has had consequences. The massive conversion of small and medium-sized apartments into tourist accommodation has limited the availability of accommodation for permanent rental. In cities such as Athens, Thessaloniki, Chania and Heraklion, thousands of apartments have been withdrawn from the long-term market, leading to a rapid rise in rents.

According to Geoaxis data, rents have risen by up to 40% over the past five years, with the greatest pressure being in student towns and areas close to the centre. The average asking rental price rose by 7.2% in 2025 alone compared to last year, while availability has fallen by around 30% in Athens and 40% in Thessaloniki.

The positives of Airbnb are income diffusion to ownersand a tourism boost to local communities. But the absence of rules and controls has caused problems of tax evasion and alteration of the urban fabric. Entire apartment buildings operate like small hotels, causing tensions between owners and residents, as well as security and cleanliness issues. According to data from ADEA, cases of “off-platform” bookings are on the rise, with revenue losses for the state amounting to €150-200 million annually

The picture in the real estate market shows two parallel realities. In the third quarter of 2025, residential sales prices increased by 10%, while rents increased by 7%. The biggest increases in sales were recorded in the centre of Athens (27.4%), in Drapetsona (26.3%) and in Peristeri (22%). On the contrary, in the southern suburbs where Golden Visa is mainly active, the increase is in the upper real estate category. In other words, Golden Visa is pushing up sales prices, while Airbnb is pushing up rents and availability.