The Greek short-term rental market remains robust in the summer of 2025, despite signs of fatigue emerging across the broader European landscape. With demand rising by 12% in August — the peak of the tourist season — and overall positive indicators in terms of supply and pricing, Greece continues to be a strong tourism “product.” However, the market is not without its challenges: increased competition from emerging destinations, high accommodation costs, and a softening in booking momentum are shaping the current landscape.
Stability amid uncertainty
According to recent data from AirDNA, Greece continues to show notable resilience. In June, supply increased by 6%, demand by 8%, and occupancy rates remained nearly unchanged year-over-year. In August — traditionally the strongest month for short-term rental platforms — demand jumped 12% compared to 2024, confirming that Greece continues to attract international travelers, particularly from the U.S. and Western Europe, who seek destinations rich in culture and history.
Meanwhile, the European short-term rental market as a whole shows clear signs of slowing down. The annual growth in listings dropped to 5.3% in June, and the first half of 2025 closed with a 6.7% increase, significantly lower than the 12.5% recorded in the second half of 2024. Greece, representing about 3% of the European short-term rental supply, remains slightly above average — but cannot remain untouched by broader trends.
Supply outpaces demand
Despite a steady rise in listings — which by March had already returned to June 2024 levels, even before the high season began — occupancy rates have not followed the same upward trajectory. In May, bookings were up 9% year-over-year, and supply increased by 7%, yet occupancy declined by 2%. This oversupply signals growing competition among hosts and raises questions about the profitability of new listings, especially in oversaturated areas.
High prices, selective demand
One of the most critical insights from the AirDNA analysis is the average nightly rate. Greece ranks among the most expensive short-term rental destinations in Europe, with an average nightly price of €150, often exceeding €200 during peak periods. In April, the average price reached €220 — just €3 below Spain — positioning Greece alongside traditional high-price markets like France and Italy.
While this pricing level favors property owners and managers aiming for high returns, it may deter price-sensitive travelers, especially when compared to up-and-coming destinations in Eastern Europe that offer more affordable, less crowded experiences.
Eastern Europe on the rise
Destinations like Kosovo and Moldova are showing impressive growth this year, nearly doubling their August bookings compared to last year. Although their absolute numbers remain small, their momentum is undeniable. Greece now faces competition not only from traditional Mediterranean rivals — such as Spain and Italy — but also from a new wave of emerging markets offering fresh, budget-friendly, and increasingly professional options.
Last-minute bookings keep momentum alive
Despite the uncertainty, Greece continues to attract strong inbound travel. The trend of last-minute bookings persists, suggesting that the summer season will likely close on a high note, boosting short-term rental revenues. At the same time, it introduces volatility into pricing strategies and complicates long-term planning for property managers.
Conclusion: Adaptation, differentiation, and professionalism
The Greek short-term rental market appears to be entering a transitional phase. The explosive growth of recent years is giving way to a more mature, competitive, and professional environment. Greece’s strong pricing power helps maintain its position, but moving forward, success will depend on differentiation, guest experience, and adaptability. Those who invest in quality, technology, and strategic communication will be best positioned to keep Greece among the most attractive — and competitive — destinations in Europe.
