Airbnb Market in Central Athens “Changing Hands”

In recent years, the Airbnb market in central Athens has undergone significant changes, with large companies and investors increasingly dominating the landscape.

What was once a platform for individual property owners to earn extra income has now shifted towards professional management. Current data indicates that these larger entities control 8 out of 10 short-term rental properties in central Athens.

This trend is especially visible in the city’s most popular tourist areas. Professional companies in districts such as Syntagma, Plaka, and Monastiraki manage 86% of available rentals. Similar dominance is seen in Agios Konstantinos, Exarchia, Koukaki, and Attica Square, where professionals control about 80% of the market. This shift marginalizes smaller property owners who are struggling to compete.

These companies provide comprehensive services, handling everything from bookings to cleaning, albeit at a cost of around 25% of rental income. Despite this expense, many property owners prefer this arrangement as it alleviates the burden of management tasks.

New Regulatory Challenges

New government regulations targeting short-term rentals are compounding the market shift. Starting in 2025, owners with over three properties must establish a formal company. Furthermore, certain municipal districts in Athens will see restrictions on new Property Registration Numbers (PRNs) for short-term rentals, particularly affecting the 1st, 2nd, and 3rd Municipal Districts. This move aims to control the rapid expansion of short-term rental properties.

Due to these regulations, existing property owners face obstacles, as any change or renewal of management contracts now necessitates an updated PRN. The limitations in PRN issuance could negatively impact those who have invested heavily in property upgrades for the short-term rental market, risking their withdrawal from the market and potential financial losses.

The Ministry of Tourism’s new legislative proposal could further strain the market by restricting short-term rental eligibility to properties classified as primary residences. This could exclude many renovated spaces, such as warehouses and basements, from platforms such as Airbnb, raising concerns among investors and property owners about the future of their investments.

These developments underscore a transformative period for the Airbnb market in Athens, where regulatory actions and market dynamics are reshaping the landscape for property owners and investors.

Source: pagenews.gr