At a time when the short-term rental market in Greece appears to be maturing and, in many cases, facing increased competition, Mykonos continues to stand in a category of its own. The island is not merely among the country’s most popular tourist destinations. For many investors, it is considered the flagship of luxury short-term rentals in the Mediterranean, offering returns that are difficult to find in other markets.
According to Engel & Völkers, despite the high cost of acquiring property, investors continue to focus their attention on the Cycladic island, as the income potential from renting luxury residences remains particularly attractive.
Returns reaching 10%
The main reason is simple: Mykonos continues to attract visitors with significant purchasing power who are willing to pay substantial amounts for a high-quality accommodation experience.
According to available market data, gross returns from short-term rentals typically range between 6% and 10% annually, depending on the location, the level of services provided, and the management of the property. In certain cases, particularly for luxury villas with private pools and panoramic views of the Aegean Sea, annual rental income can exceed €200,000 within a single tourist season.
This explains why many buyers view Mykonos not only as a leisure destination but also as a strong investment asset.
Tourism fuels demand
Behind these high returns lies the island’s exceptionally strong tourism industry.
Mykonos remains one of Greece’s most internationally recognized destinations, attracting visitors from Europe, the United States, the Middle East, and Asia. In 2024, the island’s airport served 1.61 million passengers, more than one million of whom arrived from abroad. At the same time, more than 1.29 million cruise passengers visited Mykonos.
These figures create a stable pool of visitors, many of whom seek private residences rather than hotel accommodations, strengthening demand for high-end short-term rentals.
The luxury that sells
The luxury that sellsUnlike other destinations, Mykonos does not rely solely on sun and sea. It has successfully built a strong international brand around luxury, gastronomy, nightlife, and personalized hospitality services.
The presence of luxury restaurants, beach clubs, marinas, yachting services, and private transportation has created an environment that attracts high-income visitors. This audience seeks large villas, privacy, and bespoke services—elements that translate into high daily rental rates for property owners.
Limited supply keeps prices high
Another factor working in favor of property owners is the limited supply of new properties.
Strict planning regulations and the suspension of new building permits until 2030 significantly restrict the development of new residences on the island. This means the market cannot easily be supplied with new inventory, helping maintain both property values and rental rates at elevated levels.
For investors, this scarcity acts as an additional safeguard, reducing the risk of oversupply that could otherwise put pressure on returns.
Foreign investors continue to see opportunities
Interest in Mykonos is not limited to Greek buyers. On the contrary, a significant portion of demand comes from abroad.
The island’s international recognition, combined with the Golden Visa program for high-value real estate investments, further enhances the market’s appeal. Many buyers see Mykonos as a way to gain access to a mature luxury property market that offers both capital appreciation and substantial rental income.
The challenge of the next day
The short-term rental market in Mykonos is not expected to continue growing at the explosive pace seen in previous years. Nevertheless, the outlook remains positive, as international demand, the limited supply of new properties, the island’s strong tourism profile, and the enduring value of the “Mykonos” brand create an environment that continues to favor owners of high-quality residences.
For this reason, despite the high cost of entry into the market, the island is still regarded by many investors as one of the safest destinations for investment in the short-term rental sector. At a time when many markets are searching for a new identity, Mykonos continues to demonstrate why it remains the undisputed leader of Greek tourism real estate.
