The Greek government is mulling plans to extend restrictions on short-term rentals in a bid to ease pressure on the country's property market. Greece's Prime Minister Kyriakos Mitsotakis told the Thessaloniki International Fair the possibility of extending the ban on new short-term lets in three districts of Athens for another year was being considered.

He said rolling out the ban to other parts of the country was also being considered. A three year long tax exemption for property owners who move from short to long term leases will also be extended to encourage more to make the switch.

Official 2024 figures show the average number of properties available for short-term rentals per 1,000 permanent residents in Greece is 46, according to Greek news outlet, ekathimerini.com.

In the Cyclades, the average per 1,000 residents is 611 while in the Ionian Islands it is 340 and the Dodecanese 125.

The Greek government has been grappling with a boom in short term lets fuelled by platforms like Airbnb and the pressing need for homes for locals.

When the ban on short-term rental licences was announced in 2024, Greek tourism minister, Olga Kefalogianni, warned it could be extended beyond a year. The ban was introduced on January 1.

Greece rakes in billions from tourism, with the country's beaches, hot weather and warm seas part of the draw for hundreds of thousands of visitors every year.

During the country's debt crisis in the wake of the 2008-09 financial crash, residential property prices plummeted by 42%.

They have since recovered to the point where home ownership has become a remote possibility for some locals seeking to get on the housing ladder.

According to estate agent Engel & Volkers Germany, prices in Greece have continued to rise since 2017's low, with the trend continuing this year.

The estate agent has observed that Greece continues to offer "affordable" and "moderate" prices compared with elsewhere on the continent.

Engel & Volkers, underscoring the challenge for the Greek government, said forecasts for next year remain "positive". It added: "Greece is increasingly positioning itself as a safe and value-stable destination for investments in vacation and lifestyle properties."