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25.10.2023

The Growing Significance of Short-Term Rentals in Greece

Short-term rentals are gaining prominence in Greece, driven by a combination of factors that have reshaped the property market. From internal migration and the influx of students and immigrants to the recovery of the tourism sector, these dynamics are transforming the real estate landscape in the country.

Drivers of Short-Term Rental Demand

1. Internal Migration: Greece is witnessing internal migration, as people from villages and small towns seek employment opportunities in major cities like Athens and Thessaloniki. This trend has created a growing need for temporary accommodation.

2. Students and Immigrants: The influx of students and immigrants has added to the demand for short-term rentals. Students often seek housing near educational institutions, while immigrants require temporary housing as they settle in the country.

3. Idle Residences: Greece has a surplus of closed or idle residences, including properties owned by banks or funds. Many private individuals also hold vacant properties, reluctant to invest in repairs or deal with tenant-related matters.

4. Tourism Revival: The revival of the tourism sector has had a significant impact. The return of tourists has increased demand for short-term rentals in popular destinations.

Market Trends

1. Rising Prices: Both property sale prices and rental rates are increasing, especially in sought-after areas. The surge in demand has led to price appreciation.

2. Stagnation in Depopulated Areas: In areas with declining populations and limited industrial presence, property prices remain stagnant.

3. Demand for Small Apartments with Service: Small apartments within well-maintained residential complexes have become highly sought after. These apartments offer a convenient alternative to traditional hotel rooms for short-term rentals.

4. Commercial Real Estate: Demand for luxury offices in Greece remains robust, reflecting a broader interest in commercial real estate.

5. Foreign Investment: Wealthy foreigners are increasingly interested in the Greek property market. Islands such as Mykonos and Santorini have attracted substantial investments, while luxury real estate in the Cyclades, Corfu, Crete, Rhodes, and the Attica coast also demonstrates strong demand.

Greece's property market is undergoing a transformation, with short-term rentals playing a significant role. The convergence of factors such as internal migration, an influx of students and immigrants, idle residences, and tourism resurgence is reshaping the real estate landscape. Demand is particularly strong for small apartments within serviced residential complexes, while commercial real estate and luxury properties are also in demand.

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