The short-term rental market in Thessaloniki is entering a new reality, as the omnibus bill prepared by the Ministry of National Economy and Finance, which is expected to be released for public consultation in the coming days, includes a provision banning the issuance of new Airbnb licenses in the city center. The measure directly affects one of the most dynamic segments of the real estate market, which in recent years has played a key role in upgrading the city’s building stock, attracting investment, and strengthening Thessaloniki’s tourism offering.
Thessaloniki is now among Greece’s leading urban tourism destinations, attracting visitors throughout the year. Short-term rental platforms have been a major contributor to this transformation, enabling thousands of property owners to bring vacant or neglected properties back into productive use after years of inactivity.
Particularly in the historic city center, areas such as Aristotelous Square, Ladadika, Rotunda, Kamara, and Ano Poli have seen hundreds of older apartments renovated and reintroduced to the market through short-term rentals. This development has benefited not only property owners but also the wider local economy, creating demand for construction professionals, property management companies, cleaning services, equipment suppliers, and numerous small businesses.
A sector that attracted investment
Over the past few years, the Airbnb market has become one of the main drivers of real estate investment in Thessaloniki. Both Greek and international investors have allocated capital to apartments and residential buildings, capitalizing on the city’s growing tourism sector and the increasing demand for modern accommodation.
At the same time, the expansion of short-term rentals has contributed to the revitalization of entire neighborhoods while also supporting property values across many parts of the city. For many small-scale property owners, it has provided an important source of supplementary income during a period marked by rising living costs and significant tax obligations.
It is no coincidence that Thessaloniki has emerged as a major investment hotspot for short-term rental properties in recent years, with a substantial number of renovation projects carried out solely because of the opportunities created by this market.
What changes under the new framework
The new legislative framework, expected to be officially announced in the near future, does not appear to affect existing short-term rental operations. However, it is set to halt further expansion in Thessaloniki’s city center by prohibiting the issuance of new licenses after the law comes into force.
The government has linked the measure to efforts aimed at addressing housing affordability challenges and rising rental prices. However, industry stakeholders argue that the housing crisis is a multifaceted issue that cannot be attributed solely to short-term rentals. They point to factors such as the low level of residential construction during the previous decade, the limited supply of new housing, and growing investment demand for real estate.
Many industry professionals have also expressed concerns about whether the restrictions could weaken investor interest in the city center, which has experienced significant growth and activity in recent years thanks to the expansion of tourism.
The next chapter
Despite the proposed changes, Thessaloniki’s Airbnb market remains a strong sector, with thousands of active listings and a significant contribution to the local economy. Existing hosts and property owners will continue operating as usual, while the city continues to post strong tourism performance and attract new investment in hotels, serviced apartments, and tourism-related real estate projects.
The key question is whether the new framework will succeed in increasing housing availability without undermining the momentum of a sector that has played a crucial role in Thessaloniki’s tourism development. What is certain is that the short-term rental market is entering a new phase, with thousands of property owners, managers, and investors closely monitoring developments and adjusting their strategies to the new regulatory environment.
