Rising prices alongside declining demand were the defining trends in Europe’s short-term rental market in October, according to the latest monthly report from AirDNA.
In Greece, the gap was even wider than the European average, with prices increasing by 13.3% while overnight stays declined by 10.1%.
The European short-term rental market
Across Europe, overnight stays in short-term rental properties declined by 1.7% in October, reaching 38.5 million. This marked the twelfth consecutive month without demand growth, indicating that the slowdown is not merely a temporary development.
Meanwhile, active listings increased slightly by 0.8%, reaching 3.79 million. This was accompanied by a 0.8 percentage point decline in occupancy, which fell to 54.3%.
Despite weaker demand, prices continued to rise. The average daily rate (ADR) increased by 8.8% to €131.18, while revenue per available rental night (RevPAR) grew by 7.2%, reaching €71.24.
Another notable finding concerns the Repeat Rent Index (RRI), which tracks price changes at the same properties, eliminating the effects of changes in the composition of available supply. The index increased by 7%, suggesting that a significant share of the overall price growth came from higher rates at existing properties rather than simply a greater proportion of more expensive properties entering the market.
Price growth also exceeded Eurozone inflation, which stood at 4% in October. However, maintaining higher prices in an environment of declining demand could create additional pressure on hosts, as travelers’ purchasing power and willingness to pay higher rates become increasingly important factors.
Looking at individual markets, Spain and the Adriatic region contributed significantly to the decline in overnight stays. The United Kingdom, however, was among the exceptions, recording a 2.6% increase in demand for the sixth consecutive month.
Growth was particularly strong outside London, with Scotland recording an increase of 5.8%, Northeast England 6.3%, and Yorkshire 5.6%.
A sharper decline in demand in Greece
The situation was even more pronounced in the Greek short-term rental market, which recorded one of the largest price increases among the 20 major European markets, alongside a significant decline in demand.
Specifically, Greece’s average daily rate (ADR) increased by 13.3% in October, reaching €128.16, compared with an 8.8% increase across Europe. Greece matched Croatia in terms of the rate of price growth.
However, higher prices were not accompanied by stronger demand. On the contrary, overnight stays declined by 10.1%, while occupancy fell by 3.3 percentage points to 49.1%.
Despite these losses, revenue per available rental night (RevPAR) increased by 6.3% to €62.97, primarily driven by higher prices rather than increased tourism activity.
Significant occupancy losses across Greek island destinations
The decline in demand was particularly noticeable in popular Greek island destinations, where the end of the tourist season was reflected in a significant drop in occupancy.
According to AirDNA, occupancy declined by 9.1 percentage points in Mykonos, 8.9 percentage points in Milos, and 7.7 percentage points in Zakynthos.
Mykonos provides a particularly striking example, with its average daily rate increasing by 33.2% while overnight stays fell by 37.7%.
This development is linked to seasonality and the withdrawal of lower-priced properties from the market as the tourist season comes to an end. As a result, properties that remain operational tend to maintain higher rates, pushing up the market average without necessarily indicating stronger underlying demand.
Athens presented a different picture, with occupancy remaining at 72.1%. Available supply declined by 6.5%, broadly following the reduction in demand and helping occupancy remain at relatively high levels.
What the Repeat Rent Index reveals about Greece
The Repeat Rent Index (RRI) provides further insight into the Greek market by measuring price changes at the same properties, excluding the impact of new listings or shifts in the composition of the market.
In Greece, the index increased by 8.2%, considerably less than the overall 13.3% rise in the average daily rate.
The 5.1 percentage point difference suggests that the increase in average accommodation costs was not driven exclusively by price increases at existing properties. Changes in the composition of bookings also appear to have played an important role, with higher-priced properties accounting for a larger share of booked nights.
Overall, AirDNA’s findings reveal a Greek short-term rental market that continues to demonstrate strong pricing power but is experiencing a sharper seasonal decline in demand than the European average.
Pressure is particularly pronounced across island destinations, while Athens shows greater resilience, highlighting the different dynamics shaping Greece’s short-term rental market.
