{"id":22057,"date":"2024-08-26T14:44:13","date_gmt":"2024-08-26T11:44:13","guid":{"rendered":"https:\/\/bnbnews.gr\/uncategorized\/22057\/high-prices-and-airbnb-oversupply-in-greece\/"},"modified":"2024-09-03T12:35:21","modified_gmt":"2024-09-03T09:35:21","slug":"high-prices-and-airbnb-oversupply-in-greece","status":"publish","type":"post","link":"https:\/\/bnbnews.gr\/en\/data-amp-insights\/22057\/high-prices-and-airbnb-oversupply-in-greece\/","title":{"rendered":"High prices and Airbnb oversupply in Greece"},"content":{"rendered":"

The “tourist” map in Greece is changing, affecting the Airbnb market.
\nThis results both from the preference of Greeks to spend their holidays in mainland destinations avoiding the expensive transport costs and from the decrease in demand for Airbnb accommodation in the popular Cycladic destinations.
\nIn short, travellers seem to be turning their backs on popular destinations of unreasonably high financial demands and prefer to take their holidays elsewhere.
\nSpecifically, market players are talking about a drop in Airbnb demand on islands such as Paros and Santorini that even reaches 30%.
\nAt the same time destinations on the mainland are showing an increase of up to 40% with revenues increasing by up to 15-20% compared to last season. <\/p>\n

Increase in revenue<\/strong><\/h2>\n

It is clear that revenue growth for the short-term rental sector is a one-way street, and next season it is estimated to reach 5 billion.
\neuros, say market players.
\nHowever, oversupply poses risks they point out. <\/p>\n

Prices fall in July in Greece<\/strong><\/h2>\n

July 2024 was a turning point for short-term rentals in Greece, with prices falling for the first time in almost two years.
\nAccording to data published by AirDNA<\/a>, the average daily rate (ADR) declined by 9.8% year-on-year, while occupancy also recorded a slight drop, mainly due to increased supply outpacing demand. <\/p>\n

Increasing supply and demand in Europe<\/strong><\/h2>\n

July was a dynamic month for the European short-term rental market, with total demand for overnight stays reaching 57.6 million, an increase of 17.7% compared to the same month in 2023.
\nMeanwhile, available listings on the platforms reached a new record of 4 million, up 15% year-on-year.
\nThe increase in demand kept occupancy at a relatively high level, with the rate reaching 68% across Europe.
\nHowever, despite strong demand and increased occupancy, the average daily rate in Europe recorded a decline, marking the first negative sign in the annual price change after 20 months of continuous increase.
\nADRs last month fell by 1.5% year-on-year.
\nThe price decline also had an impact on revenue per available lease (RevPAR), which fell 1.2% compared to July 2023. <\/p>\n

Crucial point in the fall in prices<\/strong><\/h2>\n

The short-term rental market in Greece is at a critical point, as the balance between supply and demand is beginning to be disturbed.
\nThe decline in prices in July signals a potential change in the market, which may affect future investment and profitability in the sector.
\nWhile demand for Airbnb in Greece remains strong, hosts will need to adapt to the new conditions by utilizing strategies to increase occupancy and maintain price competitiveness. <\/p>\n

Airbnb is on the rise in Greece<\/strong><\/h2>\n

The upward trend of short-term rentals was also pointed out by INSETE, which stated that the continuous increase in the supply of accommodation recorded in 2024 reflects the growth dynamics of the sector. In June, when the summer season officially starts, the number of accommodation units in June reached 224,860, compared to 204,578 a year ago. Meanwhile, the number of beds in short-term rental accommodation, of the Airbnb type, is approaching 1 million. In 2024 we see a continuous increase in the supply of accommodation. In particular, in January 2024, the number of accommodation was 190 thousand, recording an increase of +10.2% compared to 2023. In February the growth continued with Airbnb accommodation reaching 196k, showing an increase of +11.3% and in March the number of accommodation reached 196k, with an increase of +11.6%. In April, the number of accommodations stood at 212 thousand, recording an increase of +12.5%. In February the increase continued with 196 thousand accommodation establishments, up +11.3%, and in March the number of accommodation establishments was 196 thousand, up +11.6%. In April, the number of Airbnb accommodations stood at 212 thousand, recording an increase of +12.5%. Finally, in May, an increase of +11.0% was recorded, with the number of accommodations amounting to 218 thousand. The same picture in the number of beds where in the period January-May 2024 there is a progressive increase in the total number of beds compared to the 2023 data. The increase averages 85 thousand. And in May they reached 961,837 beds.  <\/p>\n

<\/div>","protected":false},"excerpt":{"rendered":"

The “tourist” map in Greece is changing, affecting the Airbnb market. This results both from the preference of Greeks to spend their holidays in mainland destinations avoiding the expensive transport costs and from the decrease in demand for Airbnb accommodation in the popular Cycladic destinations. In short, travellers seem to be turning their backs on<\/p>\n","protected":false},"author":4,"featured_media":22038,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[513],"tags":[562,579,581],"class_list":["post-22057","post","type-post","status-publish","format-standard","has-post-thumbnail","category-data-amp-insights","tag-trends-en","tag-short-term-hiring","tag-greece-en-2"],"_bunyad_layout_template":null,"_bunyad_layout_spacious":null,"_bunyad_sponsor_name":null,"_bunyad_sponsor_logo":null,"_bunyad_sponsor_url":null,"_bunyad_sub_title":null,"_yoast_wpseo_metadesc":"The \"tourist\" map in Greece is changing, affecting the market of Airbnb accommodation, as the data shows.","_yoast_wpseo_focuskw":"Airbnb in Greece","_yoast_wpseo_title":"%%title%% %%page%%","_bunyad_layout_style":null,"yoast_head":"\nHigh prices and Airbnb 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