The Rapid Rise of Short-Term Rentals in Greece: What It Means for Investors and Renters

The Greek real estate market is evolving rapidly, and one of the most significant trends in recent years has been the booming expansion of the short-term rental sector. In June 2025 alone, the number of available beds in short-term rentals reached a record 1.061 million, surpassing hotel capacity by 166,000 beds. This surge brings both new investment opportunities and challenges for the traditional hospitality sector and long-term rental market.

Greece Leads Southern Europe in Growth

Among Southern European countries such as Italy, Spain, Portugal, and Cyprus, Greece stands out for its rapid growth in short-term rentals. Between 2018 and 2024, stays in short-term rental properties increased by 123.1%, with over 80% of bookings made by foreign tourists.

Impact on the Economy and Employment

According to a study by the Athens University of Economics and Business (AUEB), short-term rentals account for up to 5.4% of Greece’s GDP, which translates to about €3.25 billion. The sector also supports more than 100,000 jobs across the country — especially in tourist destinations like the islands, Athens, and Thessaloniki.

How the Property Market Is Changing

The growing demand for short-term accommodation is driving new development and renovation projects, particularly in high-tourism areas. In April 2025, Greece had around 228,000 active short-term rental listings, compared to 212,000 a year earlier. By June, that number rose to 242,000 — clear evidence of sustained growth.

Despite this, short-term rentals have a lower average occupancy rate than hotels (30% vs. 56%) and slightly shorter guest stays (3.7 vs. 4.0 days), indicating that while the market is lucrative, it requires smart management and marketing strategies.

Challenges and Outlook

Hotel owners have expressed concerns about the lack of regulation and potential social impacts. However, the AUEB study suggests that short-term rentals are not the main driver of rising rents. Instead, the increasing number of unused or vacant homes plays a greater role in limiting long-term housing supply.

What This Means for Investors

If you’re considering purchasing property in Greece for income purposes, short-term rentals offer a high-potential investment opportunity. With growing tourist numbers, digital tools for property management, and a dynamic market, now is an excellent time to explore this sector.

Conclusion

Short-term rentals in Greece present unique opportunities for real estate investors, especially with the continued tourism boom and increasing demand from international visitors. With the right approach — including location analysis, legal guidance, and active management — this type of property can generate strong and consistent returns.

📞 Interested in investing in short-term rental properties? Contact our team to learn more about the best locations and expected returns. We’ll help you find the ideal solution tailored to your goals.