Athens Extends Ban on New Short-Term Rentals in City Center Until 2026

The prohibition on issuing new short-term rental permits in Athens’ city center—specifically in the first, second, and third municipal districts—has been extended through 2026, according to sources from Kathimerini.

The decision, backed by the government and Finance Minister Kyriakos Pierrakakis, aims to curb the creation of new short-term rental properties in these heavily impacted areas, where affordable long-term housing is increasingly scarce.

Initially implemented in January 2025, the ban prevents the issuance of new property registration numbers for short-term rentals in central Athens. The extension until at least the end of 2026 is intended to prevent a surge in long-term rental prices, which ministry sources warn could occur if restrictions were lifted. Despite pressure to relax the ban, the ministry remains firm, citing the need to protect housing availability.

The Finance Ministry is also monitoring data on short-term rentals across major Greek cities to assess whether further measures are necessary. In 2024, demand for short-term rentals surged, with overnight stays rising to 14.1 million, compared to 12.1 million in 2023 and 9.9 million in 2019—a 42% increase over five years. Despite this growth, short-term rentals accounted for only 9.2% of the 152.3 million total tourist nights in Greece in 2024, according to Eurostat data, underscoring their limited role in tourism growth.

A May 2025 Pulse RC survey revealed that while 90% of Greeks view tourism as vital to the economy, many believe the rapid expansion of short-term rentals is driving up rents and exacerbating the housing crisis by reducing the number of available properties. Notably, the supply of short-term rental beds surpassed hotel beds in 2024 for the first time, highlighting the sector’s growing dominance in hospitality.