Demand for short term rentals (STRs) in Greece soared more than 200 percent in March, the highest growth rate seen in Europe, in a trend boosting the country’s real estate market.
With travel restrictions being eased across Europe, tourism is rebounding across the region though not every country is performing equally well.
Greece is among the strongest performers on several indicators as the tourism season this year is expected to largely recover 2019 levels when more than 30 million people visited the country.
The latest figures from data provider AirDNA show that demand in Greece in March soared 230 percent from year ago levels, followed by Portugal (189.0%), and Croatia (153.9%). Demand for homes with sea views and private pools on islands such as Santorini and Rhodes is also boosting revenue rates for home owners amidst tight supply levels.
“Revenues relative to March 2019 were higher for 17 of the top 20 European countries, largely pushed higher by increased average daily revenues. Greece (+87.8%), Poland (+65.2%), and France (+60.7%) saw the highest increases in revenue in 2022 versus 2019, whereas Ireland (-17.8%), the Czech Republic (-15.4%), and The Netherlands (-4.1%) saw the lowest relative revenue levels,” said AirDNA.
The homes being put up for rent on platforms such as Airbnb cover a large array of properties as owners move to take advantage of their asset, when they are not using it themselves.
On islands such as Crete and Corfu, short term property rentals can often fetch more than 1,000 euros overnight for beachside homes offering visitors a stay of luxury and comfort.
The latest data shows, however, that it is not just the rental market that is hot in Greece right now.
Tourism related activities is a key source of support for Greece’s real estate market, which is showing continued strength after prices advanced by 7.1 percent last year and 4.5 percent in 2020, led by demand for a home on the country’s islands.
Bank of Greece figures highlight that foreign investors spent 1.17 billion euros on buying a Greek home in 2021, representing an increase of 34 percent from the previous year.
Elxis CEO Giorgos Gavriilidis said in an interview published in Athens News Agency recently that he expects housing prices in the broader market to advance by 10 percent this year as Greece acts as a safe haven investment for foreign buyers facing global challenges.
“Investor interest from countries, such as the Netherlands, Germany and Belgium, remains strong, focusing on Crete and the Ionian islands. This is keeping prices high as inflationary pressures drive construction costs upwards in a trend seen continuing this year,” said Mr Gavriilidis.
