Grant Thornton on short-term rentals in Greece

The Chamber of Hotels presented yesterday the recent analysis of Grant Thornton on short-term rentals in Greece
Amongst other things, the study compares the increase in the number of beds available through short-term leasing with the number of hotel beds, the monthly prices per square metre in short-term versus long-term leasing and the impact of short-term leasing in terms of environmental footprint and energy efficiency.

The consultancy says it has drawn data from the Hellenic Chamber of Hotels, INSETE (which in turn draws data from Lighthouse), Inside Airbnb, ELSTAT and the Ministry of Environment and Energy. But none of them have the actual data on the number of active properties available for short-term rental in Greece. No one, except the AADEE has access to this data.

So, while Grant Thornton himself estimates over 190,000 Airbnb-type accommodations, the AADE’s estimate (according to reports citing sources from the Ministry of Finance) is closer to 100,000 properties on short-term lease in Greece.

Short-term rental rates

The study, conducted on behalf of the Hellenic Chamber of Hotels, highlights large differences in prices per square meter between short-term and long-term leases in many regions of Greece.
This research highlights some shocking findings, claiming that the prices of short-term leases are 200% to 900% higher than long-term leases.
However, these differences may not reflect the true market situation, as they ignore important factors that affect the prices and returns of short-term leases.

Experienced property managers point out that the price of a very good short-term rental property can be at most 30%-40% higher than a long-term lease.

The cost of short-term rental

The prices of short-term leases include a number of costs that are not included in long-term leases.
These include the cost of fixed assets (electricity, water, internet, utilities), operational costs such as maintenance, cleaning and OTA commissions, as well as various public charges, such as the Climate Resilience Fee, the Occupiers’ Fee and the Service Charge for management companies. In contrast, the prices of long-term leases do not include these costs, which explains the difference in the price per square metre.

Short-term rental owner income

Another important parameter ignored by Grant Thornton’s analysis is occupancy rates.
According to INSETE data, occupancy rates for short-term rental accommodation range from 10% to 16% in the winter months (October to March) and from 23% to 59% in the summer months (April to September).
This means that short-term landlords do not have a consistent monthly income, and their profits may not be as high as implied by the analysis.

The pressures of hoteliers and the reality of the market

The criticism of Grant Thornton’s analysis can be partly explained by the pressure that hoteliers are putting on the government. As the government moves towards providing tax incentives for long-term rentals, hoteliers seek to limit competition from short-term rentals.

Grant Thornton’s analysis, while presenting important evidence of price increases in short-term rentals, fails to fully capture the reality of the market.
The differences in prices between short-term and long-term leases are not as dramatic as they appear, and the profits of short-term landlords are not as high as the research suggests.
Therefore, the debate around short-term leasing should be based on more accurate and comprehensive data.