Many travelers have experienced short-term holiday lets, yet the rapid proliferation of these rentals in popular European cities is contributing to rising rents and housing shortages for locals. Cities such as Barcelona, Madrid, Czechia, and now Budapest and Athens are responding with measures to curb or ban short-term rental licenses.
Budapest Residents Vote for a Ban
Budapest, the most visited tourist destination in central Europe, recorded 6.7 million overnight stays in short-term rentals in 2023. Recently, residents in the city’s sixth district voted narrowly to ban such rentals from 2026. This decision stems from concerns that the growing number of holiday lets is negatively affecting housing prices and overall quality of life. While 54 percent of voters supported the ban, some local business owners fear it may reduce foot traffic to nearby restaurants and cafes.
In a statement, the council emphasized that the majority of votes indicate residents prioritize the tranquility of their homes over potential lost revenue from tourism.
Athens Implements New Restrictions
Meanwhile, Athens has enacted a ban on new short-term rental licenses in three central districts, effective January 1, 2025. This decision coincides with an increase in the daily tax imposed on holiday lets, raising it from €1.5 to €8 during the summer months and from 50 cents to €2 in winter. The additional tax revenue will aid in addressing natural disasters, including heatwaves and wildfires.
Residents in Athens have voiced frustrations over the struggle to find affordable housing. One local, Alma Lazi, shared her experience of an extensive eight-to-nine-month search that yielded few affordable options.
Conclusion
As European cities grapple with the effects of overtourism, these recent measures reflect a growing commitment to prioritize local housing needs and community well-being. Further updates will provide insights into how these bans will impact both residents and the tourism industry.
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