The short-term rental market in Europe reached a new all-time high last month, with 4.15 million listings available (+2.8% year-on-year). In fact, demand increased by 7.7%, reaching 61.3 million nights, while occupancy increased by 3%.
The position of Greece
According to AirDNA's pan-European survey, the Greek short term rental market stood out, as the supply of accommodation increased by 5% year-on-year, demand was even higher with an increase of 7.5%, while occupancy increased by 2%.
In contrast to Greece, countries such as Italy (-1.5%), Spain (-1.2%) and France (-1.1%) recorded a drop in supply, with the exception of individual regions that showed small increases.
The luxury properties
AirDNA reports stronger demand mainly in the luxury (+14%) and upscale (+9%) accommodation category, with Europe highlighting new markets such as Norway and Switzerland.
«Greece, with a strong presence in villas and luxury residences, is benefiting from this international trend as it attracts high-income travellers seeking upscale experiences,» it says.
The prospects
Pre-bookings in Europe show strong momentum for the coming months. Specifically, for September bookings are up 10%, while for October they are up 13%. In contrast, November shows a slowdown with just +2%, possibly indicating a moderation in demand ahead of winter.
New «destinations»
As another AirDNA survey has shown, the least popular destinations in Eastern and Northern Europe are growing rapidly, indicating a shift of travellers towards alternative, less saturated and more economical areas.
Countries such as Poland, the Czech Republic and Croatia have seen a significant increase in demand. In Croatia in particular, supply decreased by 0.8%, but demand increased by 11.7%, leading to an increase in occupancy by 10.6%. Similarly, Poland and the Czech Republic saw demand soar above 15%.
Also noteworthy is the case of Norway, which recorded an increase of 27% in demand, Lithuania and Estonia with increases between 20-30% for August bookings.
Market operating framework
As mentioned, the impressive growth of short-term rentals across Europe - and especially in Greece - has inevitably opened up the debate on the regulation and framework of the market.
In many countries, local authorities have introduced rules concerning the duration of leases, taxation or registration of properties, trying to balance the needs of residents, hoteliers and owners.
In Greece, the debate is intense, as short-term rentals have become a key part of the tourism product, but also raising concerns about issues such as housing pressure in large urban centres or the level playing field with hotels.
MS.
