Athens locals angry as short-term rents lock up the housing market

Summer in Athens can be punishing – and residents of the Greek capital are feeling the strain as an influx of tourism pushes many locals out. Many say they struggle to find accommodation and feel squeezed out of the rental market due to high prices.

Their main competition is low availability, tourists, and short-term renting.

"The owner decided to renovate my flat one day to get a higher price if he sold it or rented it as an Airbnb," local resident Kostantinos Kardakaris told CGTN. 

"Before the renovation, I paid 320 euros [$350]; after the renovation, the owner asked for 550 euros [$600], which was a friendly price because he knew me," he said. "I can say I'm a victim of Airbnb and gentrification."

‌A few years after the Greek government urged tourists to return post-COVID, many residents are now frustrated with the influx.

While the surge of incomers boosted the economy, it sparked a significant housing crisis. Many families and students have been forced out of their hometowns as real estate companies turn their homes into co-working spaces and Airbnbs for visitors.

Compared to last year, short-term holiday rentals have increased in Athens by 10 percent, prompting "No more tourism" and "Ban tourists" movements like those in other European cities.‌

"Airbnbs have increased significantly, reaching nearly one million units. The cost has also risen dramatically," said Katerina Kikilia, Professor of Tourism Management at the University of West Attica. 

"We observe neighborhoods, mainly in Athens, which have become a space for only hosting tourists, causing families to leave the city and the areas to become deserted by the local population."

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The housing market has increased sharply in the past few years, mainly as the country emerged from a decade-long financial crisis and the pandemic. In the past five years alone, prices nationwide rose over 45 percent, with this year alone seeing a 15 percent increase.‌

While this problem has many layers, such as short-term rentals, high growing demand, and high cost of living, real estate experts say there might be a solution.‌

"This problem should be addressed in two ways," said Giannis Xylas, CEO of real estate consultancy Geoaxis. "One way will be to regulate the status of short-term rentals and perhaps set a cap like other European cities. 

"The other way is to try to put properties on the market for long-term leasing. If we put properties on the market, we increase supply. Increasing supply with the same demand will lower prices."

‌While the government indicated potential measures to tighten regulations on short-term rentals, it has also been looking for ways to regulate entry at monuments and public beaches.

‌But for many, the real problem lies at home.

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