Is Now the Right Time to Invest in a Vacation Rental in Athens?

The Athenian Riviera—an emerging investment gem for vacation rentals just outside the crowded city center.

Athens has long been a magnet for tourists, blending ancient history with vibrant modern culture. As the city continues to attract visitors year-round, many property owners and investors are considering the potential of vacation rentals. But with recent regulatory changes and market dynamics, is now the opportune moment to invest? Let's delve into the current landscape.

📈 The Booming Tourism Sector

Greece's tourism industry is experiencing unprecedented growth. In 2024, the country anticipated record tourism revenues of €22 billion, surpassing the previous year's €20.6 billion. Athens, in particular, is witnessing a surge in visitors, with projections indicating that 10 million tourists—nearly equivalent to Greece's entire population—will explore the capital in 2025. 

🏘️ Regulatory Changes in Central Athens

In response to housing shortages and rising living costs, the Greek government has implemented measures affecting short-term rentals.

• One-Year Ban on New Short-Term Rental Licenses: Starting January 1, 2025, new licenses for short-term rentals are prohibited in three central Athens districts. 

• Increased Taxation: A daily tax on short-term rentals has been raised to €8 during the peak season (April to October) and €2 in the winter months. 

• Restrictions on Property Conversions: Legislation now bans the conversion of windowless basements and storage spaces into rental properties, emphasizing the need for natural light and proper ventilation. 

These measures aim to balance the booming tourism industry with the needs of local residents and infrastructure.

💡 Opportunities Beyond Central Districts

While central Athens faces stricter regulations, other neighborhoods and suburbs present viable investment opportunities:

• Emerging Neighborhoods: Areas outside the restricted zones are still open for new short-term rental licenses, offering potential for growth.

• Long-Term Rentals: With incentives provided for landlords to switch to long-term leasing, this avenue can offer stable returns with fewer regulatory hurdles.

• Room Rentals: Offering individual rooms for rent, especially in owner-occupied properties, can be a flexible and compliant way to tap into the rental market.

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⚖️ Weighing the Pros and Cons

Pros:

• High Demand: Athens continues to attract a significant number of tourists annually.

• Diversified Investment Options: Opportunities exist beyond central districts, including long-term and room rentals.

Cons:

• Regulatory Uncertainty: Ongoing changes in legislation can impact profitability and operations.

• Increased Operational Costs: Higher taxes and compliance requirements may affect net returns.

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🏁 Conclusion

Investing in a vacation rental in Athens in 2025 requires careful consideration of the evolving regulatory landscape. While central districts face new restrictions, opportunities abound in other areas and rental models. By staying informed and adaptable, investors can still find success in Athens' dynamic property market.

Note: For personalized advice and property management services tailored to the Athens market, feel free to contact us.