No New Short-term rental registrations are to be Allowed in Athens for One year
- Athens has implemented a one-year ban on new short-term rental (STR) registrations starting January 1, 2025.
- This measure is designed to address growing concerns over housing shortages and overtourism. It targets neighborhoods where STRs make up more than 5% of the housing stock, such as Exarchia and Kolonak.
- The Greek government, led by Prime Minister Kyriakos Mitsotakis, also introduced the freeze to manage the rapid growth of STRs, which are said to exceed hotels across Greece in 2024.
- The ban is accompanied by tax incentives to encourage property owners to shift from STRs to long-term rentals.
- This freeze marks a departure from earlier proposed regulations, such as caps on rental days, which were deemed less effective in addressing housing shortages.
- STR operators renting more than two properties must now hold professional licenses, while all rentals must meet health, safety, ventilation, and liability insurance standards.
Snigdha’s View:
- The freeze reflects a broader move toward stricter regulations in Greece, creating challenges for STR operators, particularly small-scale hosts.
- This moment allows professional managers to join or form advocacy groups, engaging with policymakers to shape fair and balanced rules that support operators while addressing housing concerns.
- While the ban focuses on neighborhoods like Exarchia and Kolonaki, other areas of Athens or nearby destinations may experience increased demand. Managers can seize this opportunity to expand their operations into less-regulated zones or secondary markets, diversifying their portfolios and maintaining steady income streams.
- With new entrants temporarily barred, established STR managers can strengthen their foothold in Athens’ market by optimizing their current inventory and capturing displaced demand.
- Licensed operators managing more than two properties will face reduced competition from casual hosts, creating opportunities for professionalized services to stand out.
- The tax incentives for long-term rentals could push some property owners away from STRs. However, proactive managers could present hybrid models or revenue-sharing schemes that make STRs more attractive than switching to long-term rentals.
Alicante Imposes Two-Year Ban on New Short-Term Rental Licenses
- Alicante City Council, Spain has enacted a two-year ban on issuing new short-term rental (STR) licenses, effective immediately.
- Urban planning councilor Rocío Gómez justified the ban as essential for preserving residents’ well-being while also addressing the challenges of mass tourism.
- Of the 4,108 holiday rental properties in Alicante, 3,292 are believed to be operating without proper licenses, representing a significant compliance gap.
- In addition to the freeze, Alicante City Council is considering implementing stricter caps on the duration STRs can be rented out annually and creating a public registry to address illegal rentals.
Snigdha’s View:
- This ban follows Spain’s nationwide crackdown with cities like Madrid and Barcelona imposing similar rules to reclaim housing, now challenged by EHHA and Airbnb as threats to the economy.
- Even island destinations, such as the Balearic and Canary Islands, are tightening regulations, with the latter announcing a five-year ban on new holiday home construction.
- Property managers should prioritize ensuring that existing rentals meet all legal requirements to avoid penalties over unlicensing.
- With the freeze on new licenses, competition may intensify among existing rentals, necessitating top-notch service quality, marketing, and dynamic pricing strategies.
- The claim that nearly 80% of rentals in Alicante operate without proper licensing has been made. Licensing rules are important for ensuring compliance, but they must strike a balance, supporting the local community while not overly burdening STR operators.
- On the bright side, managers who comply with these regulations gain a unique selling point, making them more appealing to authorities and property owners looking for lawful and reliable operations.
Egypt Introduces New Short-Term Rental Regulations Focused on Ensuring Safety and Quality
- Egypt is rolling out updated regulations for short-term rentals (STRs) to enhance safety, cleanliness, and quality standards across the sector.
- These regulations will apply to serviced apartments, shared homes, and private rooms, going beyond traditional STRs.
- An accreditation system will also be introduced to differentiate approved listings from non-compliant ones, ensuring transparency and trust for travelers.
- This move is part of Egypt’s larger strategy to attract 30 million tourists annually by 2028.
- The new regulations aim to align the STR industry with this vision, fostering a well-regulated, reliable accommodation ecosystem to support the expected influx of visitors.
- In addition to STR regulations, Egypt plans to build 250,000 new hotel rooms to meet its ambitious tourism goals.
Snigdha’s View
- Egypt’s move to attract 30 million tourists annually by 2028 is ambitious and promising. However, the emphasis on building 250,000 hotel rooms raises questions about how STRs fit into the broader strategy.
- The government says it plans to focus on hotels and other accommodations, but it’s unclear if this includes more short-term rentals or mainly traditional hotels.
- The accreditation system for STRs could bring much-needed professionalism to the sector, ensuring trust and transparency. Nonetheless, for small-scale operators, these regulations might present challenges in adapting to new standards, particularly if the focus leans too heavily toward hotel infrastructure.
- For STR operators, this is an opportunity to align with the new standards, position themselves as
