Greece’s Short-Term Rental Market Surpasses One Million Beds, Overtaking Traditional Hotel Industry

• 10 June, 25

Amidst growing tourism demand, Greece’s short-term rental market officially surpassed the milestone of one million beds in April 2025—three months earlier than in 2024—marking a pivotal moment in the reshaping of the country’s accommodation landscape. According to data released by the research institute of the Greek Tourism Confederation (INSETE), the number of beds available on short-term rental platforms has, for the first time, exceeded those in traditional hotels, reaching a total of 1,007,000 compared to 895,000 in hotels.

Beds and Listings Both on the Rise as Short-Term Rental Supply Expands

The data shows a steady increase in short-term rental bed numbers at the start of 2025: 947,000 in January (up 12% year-on-year), rising to 961,000 in February, and hitting 981,000 in March—culminating in the million-bed breakthrough in April. In the same month, the number of short-term rental listings also reached 228,000, an 8% increase from the same period last year, indicating a stable expansion in supply.

This means short-term rentals now account for more than 50% of Greece’s overall accommodation supply and nearly one-quarter of all overnight stays nationwide.

Occupancy Rates Rebound, International Tourists Dominate

In terms of occupancy, the short-term rental market performed solidly in 2025. The April occupancy rate reached 26%, a 3-percentage-point increase from the same month in 2024; January stood at 14%, February at 15%, and March maintained a steady 17%. Although average length of stay slightly declined from January to March, April’s figure remained steady at 3.7 nights, the same as last year. Notably, international tourists made up a dominant 86% of the total, with domestic travelers accounting for only 14%, showing that Greece’s short-term rental market is increasingly favored by international visitors.

Platforms Like Airbnb Surge as Traditional Hotels Face Fierce Competition

The rapid expansion of platforms like Airbnb and Vrbo has posed a major challenge to Greece’s traditional hotel sector. One tourism industry insider remarked, “If all short-term rentals disappeared overnight, we wouldn’t be able to accommodate the existing tourist volume.”

The rise of short-term rentals dates back to the Greek debt crisis, when many landlords turned to short-term leasing as a way to utilize hard-to-rent apartments. Today, this model has gone mainstream—particularly in light of limited new housing construction, with many residential units being converted to short-term rentals, further straining local housing availability.

Tighter Regulations as Market Moves Toward Formalization

To address the challenges brought by rapid growth, the Greek government implemented new regulations in October 2024: owners with more than two short-term rental properties are now classified as “professional operators” and subject to higher taxes and stricter operational standards. Additionally, the short-term rental sector has been included in the “climate crisis surcharge” tax scheme.

Despite tighter regulations, INSETE data shows that 92% of short-term rental operators are now tax-compliant, effectively countering hotel industry accusations of regulatory inequality. STAMA Greece, representing about 260 short-term rental management firms, emphasized: “We provide accommodation, not services, and thus complement hotels rather than compete with them.”

Rising Housing Costs and Tight Rental Market Prompt Government Action

The short-term rental boom has driven up both housing prices and rents, further squeezing the long-term rental market—especially in city centers. To ease the housing crisis, the government has introduced tax incentives encouraging landlords to shift properties from short-term back to long-term rentals.

Greece’s Accommodation Market Enters a ‘Dual-Track’ Era

The rapid growth of short-term rentals is not only transforming Greece’s tourism ecosystem but also having profound impacts on housing markets, fiscal policy, and urban planning. With the milestone of one million beds crossed, the short-term rental market is no longer a supplemental option—it now stands alongside traditional hotels as a primary accommodation model.

Looking ahead, striking a balance between supporting tourism growth and ensuring social equity will be a key challenge for Greek policymakers and market participants alike.

Cre: news.gtp.gr