The legal battle that could transform Airbnb
The legality of short-term rentals in Greece’s designated residential areas lies in the hands of the Council of State. This matter was brought forth by the Society for the Environment and Cultural Heritage (ELLET), which submitted 16 appeals to the country’s top administrative court challenging the conversion of entire buildings into Airbnb accommodation units in Athens’ historic Plaka neighborhood.
If these appeals are upheld, it could set a precedent for similar rulings, especially in regions subject to specific urban planning regulations, such as traditional settlements. Most importantly, this legal action will determine, for the first time, whether short-term rentals fall under the category of urban leases, as defined by law, or if they constitute a “disguised” tourist activity that might conflict with the land use regulations specific to each area.
ELLET’s 16 appeals are uniform, targeting 16 properties in Plaka that have undergone a complete transformation into tourist accommodation. ELLET has urged the urban planning department of the Municipality of Athens to seal these properties, contending that the change in property use violates the protective residential status established for the Plaka area by two presidential decrees, issued in 1979 and 1993.
‘Our objective is to preserve Plaka from a substantial alteration of its character’
As anticipated, the urban planning department issued a negative response, asserting that “the urban/tourist legislation does not explicitly state that residences rented short-term through a digital platform qualify as tourist accommodations.” In response, ELLET lodged an appeal with the Council of State, seeking the annulment of this decision.
Dimitris Melissas, a lawyer and professor at the School of Civil Engineering of the National Technical University of Athens (NTUA), submitted these appeals on behalf of ELLET. He emphasizes: “Plaka is subject to a special urban planning regime that safeguards residential use while permitting specific complementary uses (e.g. shops) in designated locations. The legislative intent regarding hotel establishments is precisely outlined.” He explains: “The conversion of a property from a residence to a clandestine hotel represents a direct violation of Plaka’s protective framework. This is not a mere formality but a substantive matter. The proliferation of such small hotels in Plaka results in the displacement of residential areas, fundamentally altering the character of Plaka. Furthermore, the operation of tourist units detrimentally impacts the lives of permanent residents.”
Terraces and vans
Two illustrative examples include terraces and transportation vans. “In these lodgings, terraces are transformed into functional spaces for accommodation, where various meals of the day are served, often accompanied by loud music in the evenings. This results in a continual source of noise pollution,” Melissas explains. “Additionally, Plaka has witnessed the proliferation of well-known black vans with tinted windows, primarily utilized for transporting tourists not only during their arrival and departure from the accommodation but also for various activities.”
“These vans contribute to traffic congestion in an area characterized by narrow streets and a unique ambiance. Locally, they pose a pollution source, idling for extended periods with engines running to maintain air conditioning. All of this occurs in Plaka, an area already drawing visitors due to its distinctive character and proximity to the Acropolis,” he adds.
Furthermore, the 16 appeals target companies rather than individuals, a deliberate choice. “We observe that these properties are owned by property management companies. Plaka, akin to other regions, has become a focal point in the international real estate arena, where entire buildings are acquired and subsequently managed by service-providing companies. Notably, these companies often undergo changes; in some of the 16 cases we examined, the owner changed within a few months,” explains Melissas.
As Melissas underlines, ELLET is not fundamentally opposed to Airbnb but it is to the conversion of entire buildings into hospitality spaces in the historic neighborhood. “Our objective is to preserve Plaka from a substantial alteration of its character, occurring illicitly by contravening land use regulations. This doesn’t pertain to short-term rentals in a general sense,” he concludes.
Setting a precedent
By lodging these appeals, ELLET is executing a tactical maneuver: aiming to initiate the process of a class action, framing it as a matter of broader interest with implications for numerous individuals, enabling the expedited resolution of what would typically be a protracted legal case. The goal is to secure a swift judgment and establish a legal precedent that will inevitably prompt legislative amendments.
Although ELLET’s action is regionally centered on Plaka, it is understood that a favorable ruling by the Council of State could impact all regions across the country subject to urban planning protection, such as traditional settlements. Specifically, it could be applicable to areas where hospitality uses are prohibited by planning, including exclusive residential zones. In any scenario, for the Council of State to forbid the conversion of residential buildings into Airbnb accommodations in Plaka, the court must acknowledge their inconsistency with the designated land use. Consequently, it must affirm that, in terms of land use, short-term rentals should be regarded as tourist accommodation.
