Short-term rental saturation

Short-term rental saturation

The significant increase in supply compared to last year seems to have affected the net income of short-term rental accommodation in Athens and Thessaloniki, while in the rest of the country the trend remains positive, thanks to the better image of holiday destinations.

That conclusion is based on research carried out by Key Data on behalf of the Association of Short-Term Rental Companies (STAMA) for the Greek market this summer.

It found a rise in the supply of accommodation throughout the country by 13% to over 150,000 units. An increase of 21.3% was also recorded in accommodation in the center of Athens, based on an AirDNA survey on behalf of Kathimerini a few days ago, with the total number reaching 12,576 this year, from 10,367 in the same period last year.

That has reduced occupancy and therefore revenue, even though prices per night appear to be higher than last year. Therefore, the center of Athens shows a decrease in average occupancy for June, July and August by 11-35%, while overall in Attica the average occupancy is 33%, registering a drop of 7%. At a nationwide level, occupancy reaches 34%, marginally lower (-1%) than last year, while the regions of Crete and the Peloponnese have recorded increases of 1% and 3% respectively.

However, analysts note this summer also presents particularities, both due to the Euro 2024 soccer tournament in Germany, which ends on Sunday, and the Paris Olympics, which start on July 26. Both events have moved many foreign visitors to these areas, without this excluding the recovery of Greek destinations later this summer, given that many bookings are made closer to the date of arrival (up to 30 days).

However, the average daily rental rate (ADR) for short-term rentals in Greece stands at 209 euros, marking a 5% increase from last summer. This trend is similar in various regions, with the Peloponnese showing the smallest increase (4%). Thessaloniki showed the biggest increase of 8% to €77, while in Athens and Attica the annual increase amounts to 7% and 6% respectively, with the average price per night reaching €119 and €133. 

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