The government is extending the restrictive measure that blocks the issuance of new Property Registry Numbers (PRNs) in the centre of Athens, extending its validity until the end of 2026. The aim is to limit the spread of Airbnb-type short-term rentals in areas facing acute housing problems, as well as to stabilise rents, which are now at record levels.
The measure, which has been in place since January 2025, with a ban on issuing new AMAs in certain areas of the municipality of Athens, is extended for at least another year. As the Minister of National Economy and Finance Kyriakos Pierrakakis said, the extension of the regulation is deemed necessary to avoid a new wave of rise in rents, which could be caused if the possibility of making apartments available to tourists was released again.
The areas that remain “closed” for new short-term leases
According to the government’s planning, the freeze applies to the following areas of central Athens:
1st Municipal Apartment
Plaka, Kolonaki, Koukaki, Syntagma, Omonia, Monastiraki, Exarchia, Ilisia, Neapolis
2nd Municipal Apartment
Metz, Neos Kosmos, Agios Artemios, Pagrati
3rd Municipal Apartment
Botanikos, Metaxourgeio, Gazi, Petralona, Rouf
In these areas, no new AMAs are issued, which makes it impossible to legally include new apartments in the short-term rental market through platforms such as Airbnb, Booking or Vrbo.
Why the measure applies
The rapid expansion of short-term rentals in the historic and commercial centre of Athens has been associated in recent years with a significant reduction in the supply of housing for long-term rentals. At the same time, property values continue to rise, with more and more permanent residents shifting to the west or leaving the capital.
The economic staff believes that extending the measure is critical to stemming the rise in rents and ensuring affordable housing for students, workers and families.
The contribution of short-term rentals to tourism
Despite the constraints, the evidence shows that short-term rental continues to grow dynamically. According to Eurostat:
Overnight stays via platforms such as Airbnb and Booking reached 14.1 million in 2024
From 12.1 million in 2023 and 9.9 million in 2019, up 42% in five years
However, this represents only 9.2% of total overnight stays in the country in 2024 (152.3 million)
This means that while short-term rentals are undoubtedly an important factor in boosting the tourism product, they still do not have a dominant position in the overall hospitality market.
Checks on income and undeclared property
Simultaneously with the extension of the restrictions, the Ministry of Finance and the Hellenic Revenue Service are proceeding with intensive audits of income declarations from short-term rentals.
The authorities are targeting:
Cross-check whether the declared income matches the deposits shown in bank accounts
Identify undeclared properties placed on platforms without an AML
Check transactions made through foreign cards or third party accounts
These actions are part of the framework for strengthening tax compliance and are a priority for the AADE, especially after the increase in relevant income over the last two years.
Aiming to increase the supply of housing
Mr.Pierrakakis has stated that the key tool for solving the housing issue is to increase the supply of homes for rent. The government is preparing:
Incentives for private individuals to renovate and put closed apartments back on the market
Arrangements for legal entities (such as banks and servicers) to release up to 25,000 properties for rent
What all this means for STR owners and managers
The new reality in the centre of Athens is shaping an environment of stabilisation, but also of increased competition:
Existing hosts gain an advantage as the market remains “closed” to new players
Owners planning to enter the market should consider other areas or alternative models (mid-term rentals, co-living, etc.)
Tax and regulatory compliance is now becoming critical, not only for protection from fines but also for business viability
2026 is expected to be a year of greater institutional intervention in the short-term rental market, especially in urban centres.
