Greece's highest administrative court is considering a case that could reshape the operation of short-term rental properties in one of the country's most visited historic neighborhoods, highlighting growing tensions between tourism growth and heritage preservation.
The Council of State, Greece's supreme administrative court, heard arguments this week in a series of related cases concerning the legality of Airbnb-style rentals in Plaka, the centuries-old district at the foot of the Acropolis that is widely regarded as the historic heart of Athens.
At the center of the dispute is whether properties originally designated as residential homes can legally operate as tourist accommodations under the area's special urban-planning regime, which was established to protect Plaka's traditional character and architectural heritage.
ΔΙΑΒΑΣΤΕ ΕΠΙΣΗΣ
The cases stem from a legal challenge brought by the Hellenic Society for the Environment and Cultural Heritage, a nonprofit organization that has sought the closure of several properties it argues have been unlawfully converted from residential use into short-term tourist rentals.
The group is contesting decisions made by the City of Athens in 2023 that rejected requests to seal and shut down a number of properties operating as short-term rentals within the district.
According to the organization, the conversions violate land-use restrictions that permit residential use but do not explicitly allow hotel or tourist-accommodation activities.
The dispute has become a test case for how Greece balances the rapid expansion of short-term rental platforms with efforts to preserve historic neighborhoods increasingly transformed by tourism. Like many European cities, Athens has experienced a surge in Airbnb listings over the past decade, contributing to concerns about housing availability, rising rents and the changing character of traditional communities.
Following earlier proceedings, the Council of State ordered on-site inspections of the properties in question. Judges are now expected to determine whether municipal authorities acted lawfully when they declined to order their closure based on the characteristics of the buildings and their actual use.
The ruling, which has been reserved and is expected at a later date, could have implications beyond Plaka. A decision restricting short-term rentals in the district may strengthen efforts by local authorities and preservation groups to impose tighter controls in other historically sensitive areas across Greece.
