Greece has halted new short-term rental permits in several of its tourist hotspots, including Mykonos, Santorini, parts of Rhodes, and select areas of Corfu, under a new spatial planning framework designed to protect residential housing markets overwhelmed by tourist accommodation.
The move is being made as authorities say they need to reduce overall permitted tourist bed capacity in these islands by up to 30 percent, according to “Travel+Leisure Asia.”
The regulation seeks to preserve Greece’s stunning landscapes for future generations while managing tourism in a sustainable way.
Red-zone areas, where the density of tourist accommodation has overwhelmed local housing supply, are currently being targeted.
The Greek Ministry of Environment and Energy, together with the Ministry of Tourism, is finalizing a Special Spatial Planning Framework to enforce this policy.
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New investors are being forced to pay significantly m ore for income-producing properties
The move follows a broader regulatory push that began in October 2025 with stricter quality, safety, and registration requirements for STR properties nationwide, according to a Travel and Tour World report.
The freeze does not eliminate current licensed properties but instead prevents new registrations in oversaturated markets.
Properties that secured licenses before the freeze now command premiums of 15 to 25 percent over comparable unlicensed rentals, forcing new investors to pay significantly more for income-producing assets or pivot to long-term rental strategies yielding lower returns.
Operators holding existing permits in these island markets face a suddenly restricted competitive landscape where supply cannot expand to meet demand.
“The key is the transition to a development model that combines quality and sustainability, respecting both the natural environment and the specific characteristics of each region,” a statement said, per “Euro News.”
