The Impact of Increased Supply on Short-Term Rental Accommodation in Greece
Recent data shows that the rise in supply of short-term rental accommodation in Athens and Thessaloniki has had a negative impact on net income, unlike in other parts of Greece where the trend remains positive due to the popularity of holiday destinations.
Research conducted by Key Data for the Association of Short-Term Rental Companies (STAMA) revealed a 13% increase in the supply of accommodation across the country, totaling over 150,000 units. In Athens specifically, there was a 21.3% rise in accommodation, with the number of units reaching 12,576 compared to 10,367 last year.
Despite higher prices per night, the increase in supply has led to a decrease in occupancy rates and therefore revenue in Athens. The average occupancy in the center of Athens for June, July, and August has decreased by 11-35% compared to the previous year.
On the other hand, in other parts of Greece, the positive image of holiday destinations has helped maintain a steady demand for short-term rental accommodation, resulting in increased revenue for property owners.
Summer Tourism Trends in Greece
In Attica, the average occupancy rate for accommodations is currently at 33%, which represents a 7% decrease compared to last year. Nationally, the occupancy rate stands at 34%, slightly lower by 1% in comparison to the previous year. On the other hand, Crete and the Peloponnese have seen increases of 1% and 3% respectively.
This summer, the tourism industry in Greece is facing some unique circumstances. The Euro 2024 soccer tournament in Germany, which concludes this weekend, and the upcoming Paris Olympics starting on July 26, have diverted many international visitors to these specific regions. Despite this, there is still hope for Greek destinations to recover later in the season, as many travelers tend to make last-minute bookings, up to 30 days before their arrival.
On the bright side, the average daily rental rate (ADR) for short-term rentals in Greece has risen to 209 euros, marking a 5% increase from the previous summer. This upward trend is noticeable across various regions, with the Peloponnese showing the smallest increase at 4%. Thessaloniki has experienced the most significant surge, with an 8% increase to €77, while Athens and Attica have also seen improvements in their ADR.
Increasing Demand for Accommodation in Europe
Recent data shows a significant increase in the demand for accommodation in Europe, with occupancy rates rising to 7% and 6% for hotels and vacation rentals, respectively. This surge in demand has also led to an increase in the average price per night, reaching €119 for hotels and €133 for vacation rentals.
Travelers are increasingly choosing Europe as their destination, leading to higher demand for accommodation options. This trend is expected to continue as more people seek to explore the diverse and rich cultures that Europe has to offer. As a result, hoteliers and vacation rental owners are seeing a boost in bookings and revenue.
