Airbnb vs. Apartment Building Regulation:

The “battle” between property owners seeking to monetize their properties through short-term rentals (such as Airbnb) and permanent residents seeking peace and quiet has now moved permanently to the courtrooms.

A new, extremely important court ruling is set to put  "a stop" to short-term leases, in cases where the apartment building’s bylaws explicitly and exclusively provide for the use of the building as a residence.

The landmark decision (ΜΠΑ 2937/2026)

The Athens Single-Judge Court of First Instance granted the request for injunctive relief filed by the manager of an apartment building. The court ruled that the use of apartments for tourist purposes is not permittedwhen the apartment building’s bylaws strictly require that they be used exclusively as permanent residences.

According to the legal reasoning:

• The bylaws are law: In relations among co-owners, the apartment building’s bylaws have the force of law and are absolutely binding on them.

• The case: A company that owns a property began operating it as a tourist accommodation in the summer of 2025.

• The problems: The lawsuit pointed out that daily visitors were causing disturbances (even during quiet hours), causing damage to common areas due to excessive use, while serious safety issues were also arising from the uncontrolled entry of third parties into the building.

How did the Court interpret the “gap” in the regulation?

Airbnb hosts often argue that the regulation (which was often drafted decades ago) does not explicitly prohibit short-term rentals. However, the court responded clearly to this:

“It is true that the regulation does not explicitly prohibit the use of short-term leases, as such leases could not have been foreseen at the time the regulation was drafted. This gap must be filled in accordance with good faith and commercial practices.”

The court concluded that the actual intent of the co-owners—as evidenced by the prohibition on operating hotel businesses or uses that cause overcrowding and noise — was to include short-term rentals among the prohibitions, had this form of economic activity existed at the time.

The result? The defendant company is required to immediately cease the commercial operation of the property as an Airbnb listing and faces a fine for any future violations.

The New Law on Apartment Buildings Is Just Around the Corner

This decision comes at a time when the government is attempting to find a comprehensive and definitive solution. The Ministry of Justice is moving forward with the establishment of a special legislative committee with the aim of modernizing the legal framework for apartment buildings, which has remained essentially unchanged since as far back as 1929.

The committee will begin its work immediately, with the goal of having the new bill passed by 2026.

What is expected to change:

• Decision-making with a 51% majority:  To make a decision in a condominium, a simple majority of 51% of the owners will suffice, eliminating the need for an absolute majority or unanimous consent, which is currently in effect and often blocks the decision-making process.

• Debt Management: Fast and clear procedures will be established for the collection of unpaid common expenses.

• Facilitating real estate transactions:  The convoluted procedures involving plots of land and agricultural parcels will be simplified, and the subdivision of plots will also be permitted to stimulate the real estate market.