Greece has implemented sweeping changes to its short-term rental regulations, with an outright ban on Airbnb and similar platforms in five of the country’s most popular tourist areas, effective October 2025. This dramatic policy shift affects over 25,000 properties and represents one of Europe’s most aggressive approaches to addressing the housing affordability crisis that has plagued major tourist destinations.
The new restrictions target areas where tourism has significantly impacted local housing availability, with rental prices having increased by up to 40% in some neighborhoods over the past three years. Property owners and travelers alike are scrambling to understand the implications of these changes, which mark a pivotal moment in Greece’s relationship with the short-term rental industry.
Airbnb Ban Hits 5 Greek Areas This October
The Greek government has officially enacted legislation prohibiting short-term rentals in five designated zones, with enforcement beginning October 1, 2025. This comprehensive ban affects all platforms including Airbnb, Booking.com, and VRBO, making it illegal for property owners to offer accommodations for periods shorter than 30 days in these areas. Violations carry substantial penalties, including fines ranging from €5,000 to €20,000 for first-time offenders.
The decision follows extensive consultation with local municipalities and housing advocacy groups, who have documented the severe impact of short-term rentals on community displacement. Government data shows that in the affected areas, nearly 60% of available housing stock had been converted to tourist accommodations, leaving residents with limited affordable options. The ban represents a complete reversal from Greece’s previously tourism-friendly policies that had encouraged short-term rental growth since 2016.
Which Popular Destinations Are Affected?
The five areas subject to the complete Airbnb ban include some of Greece’s most sought-after tourist locations:
- Central Athens (Plaka, Monastiraki, and Psyrri districts)
- Mykonos Town center and surrounding coastal areas
- Santorini’s Oia and Fira municipalities
- Rhodes Old Town and nearby beaches
- Central Thessaloniki historic district
These locations were selected based on tourism density metrics and local housing shortage severity, with each area showing tourist-to-resident ratios exceeding 15:1 during peak season. Mykonos and Santorini have been particularly affected, with some neighborhoods reporting that over 80% of properties were being used exclusively for short-term rentals. The islands had become virtually uninhabitable for year-round residents, with essential workers like teachers and healthcare professionals unable to find affordable housing.
New Rules Target Over 25,000 Properties
The ban directly impacts approximately 25,400 registered short-term rental properties across the five designated areas, according to official government statistics. Property owners received six months’ notice to transition their business models, with the final deadline for compliance set for September 30, 2025. The Greek Tourism Ministry estimates that these properties generated over €850 million in annual revenue for hosts, representing about 12% of the country’s total short-term rental market.
Enforcement mechanisms include regular inspections, online monitoring of rental platforms, and a reporting system that allows residents to flag suspected violations. Properties found operating illegally after the October deadline face immediate closure orders and escalating financial penalties. The government has also established a special task force comprising tourism police and local authorities to ensure compliance, with initial inspections focusing on previously high-volume rental properties identified through platform data analysis.
Local Housing Crisis Drives Policy Change
The housing affordability crisis in these areas had reached critical levels, with average rental prices increasing by 156% in Central Athens and 203% in Santorini over the past five years. Local residents reported being priced out of their own neighborhoods, with many forced to relocate to distant suburbs or leave the islands entirely. The situation became particularly acute for essential service workers, with hospitals and schools struggling to maintain staff due to housing unavailability.
Research conducted by the Greek Housing Institute revealed that short-term rentals had removed approximately 18,000 long-term housing units from the market in the affected areas. The study found that properties converted to Airbnb typically generated 300-400% more income than traditional rentals, creating powerful economic incentives that decimated the long-term rental market. Local businesses also reported difficulty finding workers, as the lack of affordable housing made it nearly impossible to attract and retain employees in these tourist-heavy zones.
What Travelers Need to Know Before Booking
Travelers planning visits to Greece should immediately verify that their accommodations are located outside the banned zones before making reservations. Bookings made for stays after October 1, 2025, in the restricted areas will be automatically canceled by major platforms, though refund policies vary by company. Alternative accommodations are available in nearby areas not subject to the ban, though prices have increased by an average of 25-30% due to increased demand.
The Greek National Tourism Organisation has created an interactive map showing exactly which areas are affected by the ban, along with recommended alternative neighborhoods for tourists. Travelers should also be aware that attempting to stay in illegal short-term rentals could result in complications, including potential eviction with no guarantee of alternative accommodation. Hotel capacity in the affected areas has increased by approximately 15% in anticipation of the changes, though advance booking is strongly recommended, particularly during peak summer months when demand traditionally exceeds supply.
This landmark decision by Greece signals a significant shift in how popular European destinations are balancing tourism revenue with local community needs. While the immediate impact on travelers may be inconvenient, the long-term goal is to create more sustainable tourism models that preserve the authentic character of these historic areas while ensuring residents can afford to live in their own communities.
The success of Greece’s approach will likely influence policy decisions across Europe, where similar housing crises have emerged in tourist hotspots from Barcelona to Prague. As the October implementation date approaches, both property owners and travelers must adapt to this new reality, potentially reshaping how we think about tourism’s role in local economies and communities.
Join The Discussion