Greece Joins Spain, Hungary, France, Netherlands, And Portugal In Freezing Short-Term Rental Listings Amid Housing Crisis, Creating Major Shake-Ups In The European Tourism Landscape And Local Housing Markets

Image generated with Ai

Greece has joined Spain, Hungary, France, the Netherlands, Portugal, and more in implementing tough tourist rules and freezing short-term rentals as part of an effort to curb the negative impacts of overtourism and rising housing costs. This regulatory shift, which has been particularly evident in major cities like Athens and Thessaloniki, aims to strike a balance between welcoming tourists and ensuring affordable housing for local residents. With rising rents and a shrinking availability of long-term residential properties, European countries are increasingly turning to short-term rental freezes as a solution to protect both their housing markets and the quality of life for their citizens.

In a significant turn of events, Greece has become the latest European country to join the growing list of nations imposing strict restrictions on short-term rental markets, alongside Spain, Hungary, France, the Netherlands, Portugal, and more. The decision, which specifically targets key tourism-heavy areas like Athens and Thessaloniki, reflects a broader trend in Europe towards tighter control over short-term rental platforms like Airbnb and Booking.com. The aim is to address the dual crises of overtourism and housing shortages, which have sparked heated debates across cities in Europe.

Greece: Freezing Short-Term Rentals in Athens and Thessaloniki

Greece’s decision to freeze the issuance of new short-term rental registration numbers (known as AMAs) in Athens’ most central districts took effect in 2025. The freeze applies to the 1st, 2nd, and 3rd municipal districts of Athens, which are among the most tourist-heavy regions in the country. This has led to a dramatic 8% drop in active short-term rental listings across these areas, with a loss of approximately 2,500 listings, according to recent data from the Short Stay Athens Conference 2026.

In a bid to control the swelling numbers of short-term rental properties, which some argue are pushing local residents out of the housing market, the Greek government imposed this freeze. Interestingly, the announcement of this restriction triggered a rush of property owners attempting to register their properties ahead of the freeze, leading to a surge in AMA registrations in late 2024. While this freeze has disrupted the short-term rental market, it has also brought much-needed attention to the housing crisis that has been exacerbated by soaring rents and the loss of residential properties to short-term tourist accommodations.

The freeze has extended to central Thessaloniki, Greece’s second-largest city, which has long seen its own struggles with rising rents and housing affordability. Greece’s broader vision is to balance the influx of tourists with the needs of local communities, while also addressing concerns raised by housing experts and activists.

Spain: Toughening Regulations in Barcelona and Alicante

Greece is not alone in its attempts to curb the growing dominance of short-term rentals. In Spain, cities like Barcelona and Alicante have implemented increasingly stringent rules to tackle the impact of short-term rentals on housing markets. While Barcelona has had regulations in place for several years, it has taken a firmer stance in recent months by restricting short-term rentals in its most iconic districts, including the historic Gothic Quarter and Eixample.

In 2026, Barcelona plans to implement a complete ban on short-term rentals in residential zones, aiming to preserve the city’s housing stock for local residents. This follows a surge in tourist rentals that has displaced residents and raised rents to unaffordable levels. In addition to this move, the city has also imposed higher tourist taxes for short-term rentals, further discouraging property owners from listing their homes on vacation rental platforms.

Meanwhile, Alicante has been much more proactive, enforcing a moratorium on new short-term rental licenses for several years. Local authorities believe that by reducing the number of new short-term rentals in central areas, they will be able to provide more long-term housing options for the growing number of residents and families in the area.

These measures are part of Spain’s ongoing effort to strike a balance between welcoming tourists and ensuring housing remains accessible to local citizens. Despite the challenges, the shift in regulation demonstrates Spain’s recognition of the need to manage the socioeconomic impacts of short-term rentals.

Hungary: Budapest’s Struggle with Over-Tourism and Rental Pressure

Hungary’s capital, Budapest, has joined the ranks of European cities aiming to curb the expansion of short-term rentals. In 2025, the city’s local government began discussions about imposing a freeze on new Airbnb-style listings in residential zones due to mounting concerns over housing affordability. Budapest, like Athens and Barcelona, has seen a rapid increase in short-term rentals that has affected the city’s traditional housing market.

Reports from the Hungarian Tourism Agency and local housing advocates show that the rise in short-term rentals has led to a reduction in the availability of long-term rental properties. In response, local authorities in Budapest are considering a moratorium on new short-term rental registrations to help stabilize the housing market.

Although this freeze is not yet fully implemented, it reflects the increasing recognition of the negative effects of overtourism and housing shortages in European capitals. Budapest’s decision signals a potential shift in how European cities handle the intersection of tourism growth and housing security.

France: Regulatory Tightening in Paris and Beyond

France is no stranger to short-term rental regulations, especially in its largest city, Paris, where short-term rentals have long been a controversial topic. The French capital has some of the strictest rules in Europe, limiting short-term rentals to 120 days per year for primary residences. As a result, property owners must register their short-term rental listings and comply with local tax laws.

However, Paris is now taking it a step further. In 2026, the city plans to impose a complete ban on short-term rentals in certain districts and severely limit the number of properties that can be rented out to tourists. This follows rising concerns over housing shortages and the growing imbalance between residential and tourist housing in central Paris.

Beyond Paris, France’s central government has also been tightening short-term rental regulations. New laws require landlords to obtain an official license before listing properties on platforms like Airbnb, and cities like Lyon and Nice are beginning to follow Paris’s lead in regulating short-term rentals.

The French government’s actions are aimed at preventing further housing shortages and reducing the impact of tourism on local communities. By implementing these regulations, France is aiming to protect its citizens’ access to affordable housing while still benefiting from the tourism industry’s economic contributions.

The Netherlands: Amsterdam’s Strict Limits on Short-Term Rentals

In Amsterdam, the Dutch capital, short-term rental regulation has been one of the first to impose annual limits on the number of days a property can be rented out. Since 2024, Amsterdam has required all short-term rental hosts to register with the local authorities and restrict their rentals to a maximum of 30 days per year for non-primary residences.

While the rules in Amsterdam are not as restrictive as those in Paris, the city has still made a concerted effort to control the explosion of short-term rental properties that have taken up valuable residential space. The demand for housing in Amsterdam has led to rising rents, and local authorities argue that short-term rentals are partly to blame.

In 2025, Amsterdam city officials began pushing for more stringent policies on short-term rentals, including tighter enforcement of rules around the use of Airbnb and similar platforms. With housing prices continuing to rise, the city’s government has vowed to increase penalties for those who violate these regulations, sending a strong message to property owners.

Portugal: Lisbon’s Tightening of Short-Term Rental Regulations

Portugal, too, is feeling the effects of short-term rental pressure, particularly in its capital, Lisbon. The city has witnessed a rise in tourism-driven properties taking up residential spaces, and in response, Lisbon has implemented a series of short-term rental regulations aimed at curbing over-tourism.

In 2025, Lisbon introduced a cap on the number of properties that can be legally rented for short-term stays in the city’s historic areas. This move comes after years of soaring rents, which have made it increasingly difficult for locals to find affordable housing. Lisbon’s Mayor Carlos Moedas has stated that the government aims to strike a balance between tourism and residents’ rights, noting that Lisbon’s housing crisis requires immediate action.

While Lisbon remains one of the most popular destinations for tourists in Europe, these regulations reflect the city’s growing recognition of the need to control tourism’s impact on housing availability. By tightening rules around short-term rentals, Lisbon hopes to ensure that its housing market remains accessible to local residents.

As short-term rental markets continue to expand, European cities are grappling with the delicate balance between fostering tourism and protecting local housing markets. The freeze on short-term rental registrations in Athens, the toughening regulations in Spain, and similar actions across Hungary, France, the Netherlands, and Portugal all reflect a shared desire to control the impact of tourism on local communities.

While the rise in short-term rentals has provided economic opportunities for property owners and boosted local tourism economies, it has also exacerbated housing shortages and inflated rental prices in some of Europe’s most visited cities. Governments are now increasingly prioritizing residential needs over the expansion of the tourism industry and enforcing strict measures to protect housing for local residents.

Greece has joined Spain, Hungary, France, the Netherlands, Portugal, and more in freezing short-term rentals to address the dual crises of overtourism and rising housing costs. This move aims to restore balance between tourism growth and the need for affordable housing in key European cities.

As these regulations unfold, the broader European housing crisis and the future of tourism policy remain central to public debate. It is clear that the regulatory freeze on short-term rentals is not just a localized measure but part of a much larger, continent-wide shift in how Europe manages its booming tourism sector while safeguarding the living conditions of its citizens.