Vacation rental

The Athens housing market remains under the strong influence of short-term rentals, as 70 percent of buying interest in small residential units concerns properties destined to be upgraded and leased through websites such as Airbnb and HomeAway. As a result property prices posted mild growth in the first quarter of 2019, according to an analysis by Geoaxis chartered surveyors.

In a pilot crackdown last year, the Independent Public Revenue Authority (AADE) traced hundreds of foreign nationals who purchased properties in Greece without declaring them, thus avoiding the ENFIA property tax, and dozens of taxpayers who had concealed their incomes from rental properties. 

The absence of an adequate and integrated legal framework on short-term property rentals through websites such as Airbnb and HomeAway is leading to individual apartment blocks coming up with their own regulations and solutions for any problems that emerge.

Property prices in Greece recorded their biggest rise of the last decade last year, as the RE/MAX estate agency network's annual survey points to an average increase of 7.3 percent from 2017, when annual growth had only come to 1 percent.

The Greek property market appears to have emerged from its decade-long hibernation: Bank of Greece figures showed that 1.35 billion euros flowed into the country last year for property purchases (mainly houses) by foreign investors.

Property startup Blueground is entering a new phase after completing another round of funding amounting to $20 million on Wednesday.

A recovery in Greece's housing market gained momentum in the last quarter of 2018, central bank data showed, suggesting that a recovering economy and growing foreign interest might lift property prices further.

The constant increase in Attica's hotel room supply combined with the drop-off in the soaring growth in demand and the market entry of thousands of apartments for short-term lets have already started to drive occupancy rates and room prices at the capital's hotels toward a decline.
The current prospects for both supply and demand are pointing to a further gap in the near future.

The government is considering introducing restrictions on the utilization of properties advertised on short-term rental platforms such as Airbnb and HomeAway for holiday accommodation. The restrictions will be imposed on individual owners as well as investors and professional agents who benefit from the new market.

An ever-greater share of the short-term property leasing market in Greece is passing into the hands of investors and professional property managers, a trend that is also being observed in many other countries.