Are Short-Term Rental Prices in Greece Reaching New Heights?

Dec 29, 2023

In 2022, the Greek real estate market, including short-term rentals, experienced remarkable growth, with property prices and rents soaring by 7.2% and 6.7%, respectively, compared to the previous year. Athens’ northern and southern suburbs, the city center, and the Piraeus suburbs experienced substantial hikes, reflecting a thriving market. Oleg Shelepko, Lavish Rental Supervisor, remarks on this surge, “The demand for short-term rentals, especially in key areas like Piraeus, is unprecedented”.

Remarkable expansion in 2022

The short-term rental market, driven by platforms like Airbnb, also experienced remarkable expansion. In 2022, the turnover for Airbnb-style rentals in Greece skyrocketed to €3.3 billion, showcasing a paradigm shift in residential patterns due to the influx of short-term rentals. Seaside tourist destinations and central Athens neighborhoods, such as Koukaki, particularly benefited from this trend, indicating a change in accommodation preferences.

Thriving in 2023

As we stepped into 2023, the Greek real estate market continued to thrive. Golden Visa investors fueled a surge of approximately 170% in real estate purchases in early 2023, reaching a total value of €975 million. Average property prices in Athens’ southern suburbs and city center rose by 14.7% and 11%, respectively, during the second quarter. Rental prices followed suit, reaching new heights.

Airbnb market shifts

The Airbnb market in Greece also experienced notable shifts, with an increase of 50% in nights spent in short-term housing compared to 2021. Santorini, Athens, and Corfu saw significant booking increases, with rates for Airbnb stays rising accordingly. Notably, long-term stays of 28 days or more accounted for 21% of Airbnb’s nights booked in the fourth quarter of 2022, showcasing a trend towards extended rentals. The emphasis on sustainability in short-term rentals is also on the rise, aligning with the preferences of environmentally conscious travelers.

Piraeus surges ahead

In Piraeus, the demand for short-term accommodation witnessed a remarkable 20% increase in the first quarter of 2023 compared to pre-Covid 2019 levels. This surge in demand resulted in a 29.6% year-on-year growth in March 2023, with occupancy levels experiencing a 50% boost, marking the highest among the 20 countries reviewed by AirDNA.

Off-season triumph

Greece’s strong performance in the short-term rental market, especially in the off-season, is reinforced by data from AirDNA. In October 2023, Greece’s occupancy rate surged by 31.6% compared to 2019, making it one of the top-performing European countries during this period. Demand for short-term rentals in Greece increased by an impressive 47.1%, outpacing the 8.6% increase in available listings. Comparing October 2023 occupancy rates with pre-pandemic levels highlights the increasing popularity of off-season travel.

Looking ahead to 2024

Demand for short-term rentals in 2024 remains high, with bookings from December 2023 to April 2024 showing a 15% increase compared to the same period last year. December, typically a month with lower demand, sees an 18% year-on-year increase, while January and February, traditionally quieter months, record improved demand of 12% and 15%, respectively. The shift of holidays and Easter in 2024 contributes to a significant increase in the demand rate for March (+34% year-on-year). Greece, along with Spain, Portugal, Italy, and Croatia, sees occupancy levels exceeding 20% above 2019 figures.

Greece’s enduring appeal

In conclusion, the short-term rental market in Greece, particularly in areas like Piraeus, continues to flourish in 2023. The strong demand, increasing prices, and the country’s resilience as an off-season destination showcase the enduring appeal of Greece in the real estate and short-term rental landscape. As the market adapts to changing travel patterns, Greece remains a key player, offering both investors and travelers exciting opportunities in the years to come.