Airbnb: Radical Changes Coming to Short-Term Rentals in 2025

Amid a severe housing crisis, significant changes are coming to the short-term rental market known as Airbnb.

The government has decided to introduce new rules that should harmonize the obligations of landlords and owners of hotel rooms or rooms as much as possible, as well as limit oversupply, thereby stimulating the long-term rental marketThese changes occur against the background falling rents for real estate and rapidly rising pricescaused by the rapid and often unregulated spread of short-term rentals.

Airbnb: What the government says about short-term rental rules
According to the government and relevant ministries, New rules aim to restore balance in the real estate marketsupporting long-term rentals, improving security and quality of short-term accommodation. It is worth noting that there have already been measures have been taken by equalization tax regime short-term rental property managers with other forms of residential rentals.

As part of these initiatives, the following are being introduced: stricter rules for licensing and operating short-term rental propertiesas well as significant incentives for landlords who decide to switch to long-term rentals. These initiatives, while eagerly anticipated, should address the growing pressure on the housing market and provide a sustainable solution to the crisis that has affected many households.

Around 12,000-15,000 properties will return to the traditional rental market
Despite high expectations, real estate market participants believe that The new rules will have only a limited impact on the overall housing crisis.Although government incentives for landlords to move their properties from short-term to long-term rentals have been increased, it is estimated that only 10% of properties will make the transition to the long-term market, at least according to industry insiders.

Given that the number of Airbnb in Greece is approaching 120,000, this means that approximately 12,000-15,000 properties will return to the traditional rental market.

According to government statements at the 88th Thessaloniki International Fair (TIF), as well as their specialization by the relevant ministries, the new mechanisms include significant changes that could lead to victory or defeat depending on the path chosen. These actions include:

1. Restricting new short-term rentals. From 1 January 2025, the issuance of new short-term rental permits in certain areas of Athens, such as the city centre, Pagrati and Neo Kosmos, will be temporarily suspended for a period of at least one year, with the possibility of renewal.
2. Incentives for long-term rentals. Landlords who convert their properties from short-term to long-term rentals will be exempt from income tax for three years. The measure only applies to the property of individuals, not companies. The estimated loss of state revenue will be around 3 million euros in 2025 and 13 million euros per year in 2026-28.
3. Strict standards for short-term rentals. Short-term rental properties will be subject to strict minimum operating requirements, including minimum floor area, no underground spaces, mandatory fire safety and safety certification by professionals. These specifications also include liability certification, installation of security systems, fire suppression systems, smoke detectors and regular disinfection of the premises before each new rental.
4. Stricter requirements for apartment buildings. In multi-family buildings, the elevator must be certified for commercial use, and there will also be restrictions on the number of available units that can be made available for short-term rental.

It is expected that The new rules will come into force before the start of the 2025 summer season. They will set new standards for short-term rentals in Greece and create a more balanced and secure market. While these changes are aimed at improving housing quality and strengthening long-term rentals, their ultimate impact on the housing crisis will depend on how effectively they are implemented and how quickly the market adapts to the new conditions.

Source link