Greek Government Proposes New Measures to Curb Short-Term Rental Growth

Addressing the Housing Crisis

The Greek government is actively developing a new framework for spatial planning aimed at mitigating the housing crisis exacerbated by the rapid expansion of short-term rental platforms. As demand for accommodation in major cities like Athens and popular islands such as Santorini and Mykonos continues to rise, officials are seeking a balance between supporting the vital tourism sector and ensuring housing affordability for local residents.

Proposed Regulatory Measures

The proposed measures focus on tightening control over the short-term rental market. Key elements under consideration by the Ministry of Tourism and the Ministry of Environment and Energy include:

• Zoning Restrictions: Implementing limits on the number of short-term rental licenses allowed in specific neighborhoods or districts to prevent the 'touristification' of residential areas.
• Operational Caps: Potential caps on the number of days a property can be rented out annually on platforms like Airbnb or Booking.com.
• Enhanced Oversight: Stricter registration requirements and increased monitoring of property owners to ensure compliance with tax and safety regulations.

Prime Minister Kyriakos Mitsotakis has previously acknowledged the pressure on the housing market, stating that the government must intervene to protect the 'right to housing' while maintaining Greece's competitive position as a global tourism destination.

Impact on Tourism and Local Economy

The tourism industry remains a cornerstone of the Greek economy, accounting for a significant portion of the nation's GDP. Industry stakeholders have expressed mixed reactions to the proposals. While some hospitality associations support measures to ensure fair competition, others warn that overly restrictive policies could deter investment and negatively impact property owners who rely on rental income. The government maintains that these interventions are necessary to ensure sustainable growth and to prevent the displacement of long-term tenants in high-demand areas.

Next Steps

The proposed spatial planning measures are currently undergoing review by relevant ministries and stakeholders. Further details regarding the implementation timeline and specific geographic zones affected are expected to be finalized in the coming months. The government aims to integrate these changes into a broader strategy to modernize urban planning and improve the quality of life for residents in heavily visited regions.