Rent increases continue despite the slowdown recorded in the housing market, leading thousands of landlords to request rent adjustments and even more tenants to wonder whether they are obliged to accept them. Pressures are now extending even to areas that until recently were considered more affordable, turning every lease renewal into a difficult negotiation. The answer, however, depends not only on market conditions, but also on the lease contract, the mandatory three-year term and the agreement between the two parties.
The housing crisis continues to keep pressure on prices. According to the latest data from the Bank of Greece, apartment prices increased by 5.7% in the first quarter of 2026 compared with the same period of the previous year. In Athens the increase stood at 5.2%, in Thessaloniki at 6.4%, in other major cities at 5.4%, and in the rest of the country at 6.9%. Although the rate of increase is lower than that of the previous two years, it confirms that the housing market continues to move upward, keeping rents high as well.
Behind the national average, however, there are significant differences. In the southern and northern suburbs of Athens, where rents are already at particularly high levels, increases are showing signs of slowing. By contrast, in the western districts of Attica, in Piraeus and in several regional cities, asking prices continue to rise more sharply, as demand shifts to areas with relatively lower rents. As a result, truly affordable options for families, young workers and students are becoming increasingly limited.
In this environment, every discussion about renewing a lease is almost always accompanied by a request for a higher rent. However, a rent adjustment is not the exclusive decision of the landlord, nor can it be imposed at any time. An adjustment is a change to the agreed rent and can only be made when it is provided for in the lease through an adjustment clause, when a new agreement is reached between landlord and tenant, or after the completion of the mandatory three-year term.
Under Law 1703/1987, a residential lease has a minimum mandatory duration of three years, even if a shorter period has been agreed in the contract. This means that, before the completion of the three years, the landlord cannot unilaterally impose a rent increase unless there is a relevant provision in the contract. After the three-year period has elapsed, the law does not set a maximum percentage increase. The amount of the new rent is determined freely, but only if there is agreement between the landlord and the tenant. If no agreement is reached, the landlord may, in accordance with legal procedures and the terms of the lease, seek the termination of the tenancy and the return of the property.
Not every demand for a higher rent is lawful. An increase is considered illegal when it is imposed unilaterally without the tenant’s consent, when it is requested before the completion of the three-year term without a relevant clause in the lease, or when a new rent is demanded without a new agreement between the two parties. In such cases, the tenant has the right not to accept the increase.
A key role is played by the adjustment clause, namely the term in the lease that determines from the outset when and how the rent may change. The most common clauses provide for an annual increase by a fixed percentage, usually 2% or 3%, or for a link to the Consumer Price Index published by ELSTAT. Thus, for example, a rent of €700 with an annual adjustment of 3% rises to €721, while when the clause is linked to inflation, the corresponding percentage announced by ELSTAT is applied.
Market experts advise both landlords and tenants to carefully review the terms of the lease before any change in rent. A tenant may request justification for the increase, compare the new rent with similar properties in the area and seek a smaller or gradual adjustment. On the other hand, many landlords prefer a reliable tenant over an excessive increase that could lead to months of searching for a new tenant and a loss of income.
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