Greece’s short-term rental market continues its upward trajectory, recording one of Europe’s strongest performances in July, with revenue per available room (RevPAR) rising 14.3% year-on-year to €142.80. AirDNA data for July paints a picture of a market undergoing structural transformation: supply is contracting, demand remains strong, prices are climbing, and occupancy is improving. This development is particularly significant for the tourism economy and real estate sector, as it shows that a shrinking supply of available properties has not translated into lost revenue — quite the opposite, it has been accompanied by higher returns per available night.
How Greece’s short-term rental market is performing
In July, the number of available short-term rental properties in Greece fell by 2% compared to the same month in 2024. AirDNA attributes this decline to regulations introduced in October 2024, which aimed to raise the quality of available listings. At the same time, however, overnight stays increased by 1.9%, reaching 2,680,000. This dynamic creates a particularly favorable environment for properties that remain on the market. Fewer units are competing for greater demand, pushing occupancy up by one percentage point to 71.3%. The picture contrasts sharply with the broader European market. Across Europe, available listings grew by 1.9% in July, while demand rose by just 0.8%, causing average occupancy to slip by 0.3 percentage points to 69.2%. Greece’s market is therefore moving to a different rhythm: constrained supply is acting as a lever supporting occupancy rates and, by extension, revenues.
The data
The second dimension of the picture is even more impressive. The average daily rate (ADR) for short-term rentals in Greece jumped 12.8% in July, reaching €200.35 — significantly higher than the European average increase of 8.2%, where the average rate stood at €159.20. The combination of rising prices and stronger occupancy pushed RevPAR to €142.80, up 14.3% year-on-year. For the market, this metric carries more weight than a simple price increase. RevPAR reflects the performance of available inventory and indicates how effectively the market can generate revenue from each available night. Greece is posting strong results on this indicator at a time when short-term rentals are undergoing rationalization and increased regulatory scrutiny. Particularly noteworthy is AirDNA’s analysis of where exactly the price growth is coming from.
In Greece, the ADR rose by 12.8%, while the Repeat Rent Index — which tracks price trends for the same properties over time — increased by 7.8%. The gap between these two figures indicates that a significant portion of the ADR increase is linked to a shift in market composition. In other words, it’s not simply existing hosts raising their rates. The exit of lower-quality properties and a different mix of available listings are also pulling the market average higher. This development is directly connected to the goals of the October 2024 regulations: a smaller market in terms of the number of properties, but one of higher quality and greater economic performance.
Travelers prefer premium
The shift is not just about market size — it’s also about quality profile. AirDNA data shows that the largest occupancy gains are being recorded in the higher price tiers. Luxury properties saw occupancy rise by 4.8 percentage points to 48.75%, while upscale properties gained 4 points, reaching 56.39%. Budget accommodations still lead overall with an occupancy rate of 59.2%, but their year-on-year growth was limited to just 0.5 percentage points. This trend indicates that demand in Greece’s short-term rental market is not simply being pushed toward cheaper options. On the contrary, higher-end categories are showing stronger occupancy improvements, creating a more compelling environment for investment in quality tourist accommodation.
The big bet ahead
July’s strong performance takes on even greater significance in light of the upcoming autumn season. AirDNA reports robust pacing for the European market in both September and October. Demand nights for September are tracking 6.9% higher than last year, and 6% higher for October. At the same time, the ADR for already-confirmed bookings stands at €152.34 for September — up 12.9% — and €148.58 for October, up 14.3%. RevPAR is tracking 16.9% higher for September and 15.9% for October. For the Greek market, this raises a critical question: to what extent can the current revenue improvements become a permanent feature. The data so far suggests that the reduction in available properties has not led to a corresponding decline in economic activity. On the contrary, the market appears to be transitioning toward a model defined by smaller supply, higher prices, stronger occupancy, and a greater emphasis on quality.
For investors in tourism real estate, this may be the most important takeaway from AirDNA’s figures: value no longer appears to lie solely in growing the number of available properties, but in the performance and quality of the inventory that remains on the market.
Originally published in Apogeumatini
