Short-term rental housing surpasses hotels in terms of the number of available places

January 10, 2024

The news about tourism in Greece has brought exciting changes regarding the preferences of travelers. Short-term rental housing in this picturesque country has now become a more attractive option, exceeding even famous hotels in terms of the number of available places.

The latest data provided by the Institute of the Greek Confederation of Tourism (INSETE) reveals interesting trends. As of July 2023, there are more than 212 thousand short-term rental properties with a total of 392,118 rooms and 939,167 beds. While the hotels known for their comfort have only 10,087 with 443,835 rooms and 885,624 beds. These figures speak for themselves, making short-term rentals more affordable and diverse for travelers.

New legislative initiatives introduced by the Greek government in 2023 are designed to regulate the rental housing market. The purpose of the laws is to ease the pressure on the long-term rental market and provide more opportunities for those looking for short-term options. And the first signs show that these changes are bearing fruit, with the return of some properties to the traditional rental market.

The restrictions on short-term rentals introduced at the beginning of the year are related to changes in taxation for owners of more than two properties. This may change the landscape of the market, as many landlords may prefer to return their property for the long term. Such changes will certainly affect the balance of supply and demand, reducing the cost of rent.

However, in addition to statistics, it is important to pay attention to public opinion. A Pulse survey conducted for Kathimerini showed that six out of 10 Greek citizens are worried about the impact of short-term rentals on the urban and social structure. This is a sign that changes in the housing market have profound social consequences.

Deputy Finance Minister Haris Theoharis stressed that the market will need time to master the new rules. The Government remains in a wait-and-see position, closely monitoring developments to determine how effective the measures introduced will be. It is important to note that no additional market interventions are expected in the near future.

These changes in the rental market in Greece are forming a new picture of tourists' preferences. Short-term rentals, by providing more options and alternatives, are becoming a key element of the travel experience. The new laws, although they have caused some difficulties, are already beginning to affect the dynamics of the market. Time will tell what prospects and challenges await in the future.