The housing crisis remains one of the most pressing issues in the Greek property market, and the upward pressure on rent continues. In many cases, rental costs now absorb a substantial portion of a household’s monthly income.
To tackle this crisis, several measures introduced in recent years have focused heavily on short-term rentals. In this vein, the government has now extended the measures initially implemented in central Athens to Thessaloniki.
What are the new measures for the co-capital
This type of intervention is not entirely new. Since early 2025, the issuance of new Property Registry Numbers (AMA) has been suspended in parts of central Athens, aiming to boost the supply of properties available for long-term let (you can read more here and here.
The application of this measure has now been extended to Thessaloniki, where a ban on issuing new Airbnb licences comes into effect from 1 July until 31 December 2026.
This ban affects properties located in the 1st Municipal Community of the Municipality of Thessaloniki. This district encompasses the majority of the city’s historical, commercial, and tourist centre, including Aristotelous Square, Ladadika, the Rotonda, Agia Sofia, Navarinou Square, and the wider area surrounding the Aristotle University of Thessaloniki.
What applies in the event of a property transfer
Another significant provision of the new framework concerns properties that change ownership within the restricted areas.
According to the regulations, if a property is transferred through a sale, inheritance, parental grant, or donation, it is immediately removed from the Short-Term Accommodation Registry. The new owner cannot register the property anew for as long as the ban on issuing new AMAs remains in force in that area.
This rule ensures that the restrictions remain active even after a change of ownership, regardless of how the transfer takes place. It is widely expected to impact both future investments and property transactions in the affected areas.
The contribution of short-term rentals to the development of Thessaloniki
The extension of these restrictions to Thessaloniki has sparked intense debate within the property market. Over recent years, short-term rentals have driven the renovation of hundreds of older flats and contributed significantly to the regeneration of several neighbourhoods across the city.
Simultaneously, the sector created substantial demand for professions and services related to property management, such as management agencies, renovation crews, cleaning services, and technical trades.
For many owners, utilising a property through short-term letting served as a vital supplementary income, helping them meet increasing tax, operational, and housing obligations.
The other side of the coin
Conversely, the government links these new restrictions directly to the need to increase the supply of housing for long-term let and to curb the relentless pressure on rental prices.
However, many market experts point out that the housing crisis is not solely the fault of short-term rentals. A prolonged economic crisis, a severe drop in construction activity for over a decade, and the uncertainty brought about by the pandemic have all drastically limited the supply of new homes, contributing heavily to the current state of the market.
Strict penalties for violations
The new framework is accompanied by strict penalties enforced by the AADE (Independent Authority for Public Revenue) for anyone attempting to let a property on a short-term basis without being entitled to a new registration in the Short-Term Accommodation Registry.
Specifically, a fine equal to 50% of the income generated from the activity is imposed, with a minimum penalty of €20,000. If the violation is repeated within the same tax year, the fine can reach the total amount of the collected rent, with a minimum penalty of €40,000.
Whether these new restrictions will substantially help resolve the housing crisis remains to be seen. What is certain is that the short-term rental market in Thessaloniki is entering a new phase, with owners, investors, and industry professionals monitoring developments very closely.
The coming months will reveal whether these measures successfully increase the availability of homes for long-term let, and how they will ultimately impact a sector that has played a key role in upgrading properties, creating jobs, and strengthening the local economy.
