The short-term leases market in Greece is entering a new era as Law 5170/2025, which establishes strict terms and conditions for properties made available in this way, came into force on Wednesday, 1 October.

The Minister of Tourism, Olga Kefalogianni, recently introduced the new institutional framework, stressing that it is clear, setting rules so that competition works fairly for all and ensuring improvement in the quality of services provided. It establishes clear rules on quality criteria and legality, taking into account the growth of this activity, which is part of the tourism offer. This is why the government actively recognises the need to ensure an environment of healthy competition in the hospitality sector. It seeks to alleviate the pressure exerted by the increased travel flows, in certain destinations, but also to contribute to the healthy economic and social development of the destinations by promoting a balanced offer of hospitality and accommodation for residents, workers, etc.

The minister expressed her confidence that the new regulations contribute to the implementation of the objectives for qualitative and sustainable growth of Greek tourism, which continues to record historically high performance, as the data so far for 2025 indicate that it will be another positive year.“Already in the first seven months of the year, travel receipts increased by 12.5%, compared to the same period in 2024. Inbound travel, at the territory level, also saw an increase compared to last year’s record-breaking year. But the important thing is that the dynamic expansion of tourism activity in the off-peak months, the lateral and winter months, is maintained, which is a key objective of our strategy,” said Mrs Kefalogianni.

Strict controls and sanctions

The new institutional framework provides for compliance checks by the Ministry of Tourism and the ADSE, as well as sanctions and fines similar to those applicable to tourist accommodation. Already, the Ministry of Tourism through ADRE has sent an electronic notification to all registered property managers who have a Property Registration Number (PRN), and a circular has been issued explaining the requirements, which will similarly be sent by automated message from ADRE.

In this context, as of October 1, those accommodations that do not constitute real estate for primary use under the urban planning regulation will be deleted from the electronic records of the AADE, and in particular, the Register of Short-Term Accommodation Properties. Therefore, they lose their Property Registration Number (PRN), and the AADE will inform the online rental platforms with which it has signed memoranda of understanding and information exchange, such as Airbnb. Due to the strict framework that has been activated, it is estimated that 5%-10% of accommodation is immediately put out of business.

In addition, by the end of the yea,r it is expected to be decided in which – apart from the first three apartments of Athens – areas of the country the sale of new properties with short-term rentals will be banned, but also which other incentives and disincentives will be introduced in order to return properties to the market of long-term rentals.

According to the key points of the new legislative framework, properties leased on a short-term basis are now required to meet minimum standards among which: Be premises of primary use under the New Building Code and have natural lighting, ventilation and air conditioning; have a civil liability insurance policy covering any damage or accidents, as well as an electrician’s declaration and a certificate of mycosis, have a sworn statement from an electrician installer, fire extinguishers and smoke detectors, a cut-off relay or anti-electrical relay and escape signage, and have a myocide and disinfection certificate, a first-aid kit and a first-aid kit and a guide with emergency telephone numbers.

Historical record for short-term rentals

At the same time, the short-term rental market in Greece continues its explosive growth, setting records in the number of accommodations and available beds. According to data from INSETE, the number of available Airbnb-type short-term rentals continues to rise in the period January – August 2025, setting a record in May with 236,000 accommodation units, which was broken again in June with 242,000 units and in July with 246,000 units, the highest value recorded since January 2019 to date. The number of accommodation establishments in August reached 247,000, recording a new all-time high and consolidating the strong upward trend of the summer season.

In terms of available short-term rental beds, the third quarter started with July setting a new record with 1,078,236 beds, up +57,000 compared to July 2024. The upward trend continued in August, with the number of available beds reaching 1,081,481. This is a new all-time high, which highlights the steady strengthening of short-term rental momentum at the peak of the summer season.

The increased supply of short-term rental accommodation appears to be commensurate with the increase in visitors, as occupancy levels remained high, following a steady upward trend. In June, 40% occupancy was recorded, the same rate as in 2024. In July, the rate rose to 51%, remaining at the same level as last year, while in August, the rate was 58%, compared to 59% in August 2024. Despite this slight drop, occupancy levels remain high, confirming the steady demand during the summer season.

The average length of stay in short-term rental accommodation in Q1 2025 showed a general decline compared to the same period in 2024, while in Q2 it recorded a stabilisation in April and a mild recovery in the following months, partially reversing the decline in Q1.

The third quarter began with stability in July, when the average length of stay was 4.1 nights, the same as in July 2024. August saw a new increase, with the average length of stay reaching 4.2 nights, up +2.4% from 4.1 nights in August 2024.

The INSETE data shows that visitors to short-term rental accommodation were mainly foreigners, covering more than 90%. Indicatively, in May and June, foreign travellers accounted for 92% of total demand, in June 91%, while in August the figure was 89%. In fact, May’s performance is the second-highest value recorded for the 2019-2025 period, after 93% in September in both 2023 and 2024. Historically, a similar rate was recorded only once before, in June 2022.