Greece’s Short-Term Rental Market Soars on Foreign Demand, but Occupancy Lags

• 10 August, 25

Greece’s short-term rental (STR) market is expanding rapidly, with foreign travelers now making up more than 90 percent of guests in peak months, according to new data released by INSETE, the research arm of the Greek Tourism Confederation (SETE).

While supply is booming, the latest figures point to a growing imbalance between supply and demand, as occupancy rates show signs of strain.

Listings and beds hit record highs

In June 2025, Greece set a new all-time record for the number of STR accommodations, reaching 241,835 listings — more than at any other time on record. Bed capacity also climbed to a historic high of 1,060,848. This growth marks the continuation of an upward trend that began in 2023 and has gained momentum in 2024 and 2025.

The second quarter of 2025 saw steady expansion month over month. Listings rose from 228,000 in April to 236,000 in May and 242,000 in June, representing a year-on-year increase of 17,000 listings compared to June 2024. Beds followed a similar trajectory, surpassing the 1 million mark in April — three months earlier than the previous year.

Occupancy flat despite soaring supply

Despite record-breaking inventory, occupancy rates have failed to keep pace. In May 2025, occupancy dropped to 28 percent — down two percentage points from the same month in 2024. June saw no improvement, remaining flat at 40 percent, despite a longer average length of stay.

The pattern suggests that rising supply may be outstripping demand in some regions or property segments, raising questions about the sustainability of growth and the potential need for better distribution or yield strategies.

Foreign guests dominate

International visitors now overwhelmingly dominate the STR market in Greece. Foreign guests made up 92 percent of all short-term rental stays in both May and June 2025, with domestic travelers accounting for just 8 percent.

This marks one of the highest shares of international participation recorded in recent years, second only to the 93 percent seen in September of 2023 and 2024. The strong foreign presence underscores Greece’s heavy reliance on international demand in the sector and could influence both marketing strategies and investment priorities going forward.

Mild uptick in length of stay

After declines earlier in the year, the average length of stay began to recover in Q2. In May, stays averaged 3.6 nights, up 5.9 percent from the year before. June saw a further increase to 3.8 nights, indicating some resilience in guest behavior amid broader market shifts.

Cre: news.gtp.gr