The European market for short-term rentals has reached another record. In the most recent reporting month, listings across the continent climbed to 4.15 million, a 2.8 percent increase compared to the same period last year. Demand grew even faster, up 7.7 percent, with 61.3 million overnight stays booked. Occupancy also edged higher by three percent, showing that supply alone cannot explain the momentum: travelers are actively choosing this type of accommodation.
Greece stands out in the data compiled by AirDNA. While many countries struggled to maintain positive numbers, the Greek short-term rental market expanded steadily. Listings increased by 5 percent year-over-year, demand rose by 7.5 percent, and occupancy improved by 2 percent. It is a performance that suggests the country is not simply following the broader European trend but leading it.
The contrast is particularly striking when set against the large traditional markets. Italy reported a 1.5 percent drop in available properties, Spain fell by 1.2 percent, and France by 1.1 percent. There were isolated areas in those countries that managed slight growth, but the overall trajectory was downward. Greece, on the other hand, managed to grow both supply and demand simultaneously, thereby strengthening its position in the European landscape.
Part of the story lies in the type of properties travelers are now seeking. AirDNA highlights that demand for luxury rentals increased by 14 percent, while the “upscale” category rose by nine percent. Northern Europe and Switzerland have emerged as rising stars in this high-end market, but Greece benefits even more. The country has long been renowned for its villas, private homes with pools, and seaside properties, all designed for guests seeking privacy and comfort. As the report puts it, Greece is well-positioned to attract “high-income travelers in search of upgraded experiences.” That means the appeal of the country is not limited to volume but extends to value.
Forward bookings also paint a picture of resilience. Across Europe, reservations for September are already ten percent higher than last year, while October shows a thirteen percent increase. The curve bends slightly in November, where bookings are up only two percent. Analysts interpret this as a sign that winter still represents a natural barrier for the short-term rental market in many regions. Yet the overall picture suggests that autumn will remain busy, giving destinations more breathing room before the traditional low season sets in.
Another important element in the AirDNA research is the rise of “new destinations.” Travelers appear to be shifting away from the saturated hubs of southern Europe and seeking alternatives in eastern and northern regions. Countries like Poland, the Czech Republic, and Croatia registered strong growth. Croatia, for instance, saw a 0.8 percent decline in supply, yet demand jumped 11.7 percent, driving occupancy up by more than ten percent. Poland and the Czech Republic recorded increases above 15 percent, and the Nordic countries showed even more dramatic results. Norway reported a 27 percent increase in demand, while Lithuania and Estonia saw jumps of between 20 and 30 percent in August bookings.
These figures suggest that travelers are not only chasing sun and sea but also affordability, space, and novelty. The “less promoted” corners of Europe are now receiving attention as guests look for experiences that feel both authentic and economical. For Greece, this trend is a reminder that the competition is no longer limited to Spain or Italy. Markets that once seemed peripheral are now capable of attracting a significant slice of international demand.
The expansion of short-term rentals inevitably reopens the debate over regulation. In most European countries, local authorities have introduced rules governing issues such as the maximum rental length, the obligation to register properties, and taxation. The aim is to strike a balance between the interests of residents, hoteliers, and property owners. Too little oversight risks distorting the housing market; too much may strangle a source of income and flexibility that many families have come to rely on.
In Greece, the discussion is particularly intense. Short-term rentals have become an integral part of the tourism product, complementing but also competing with hotels. They provide visitors with a choice and income for property owners, especially in regions where traditional employment opportunities are scarce. At the same time, they contribute to housing pressure in big cities such as Athens and Thessaloniki, where locals find themselves priced out of central neighborhoods. Hotel associations argue that they operate under stricter conditions and higher taxes, while private hosts can often avoid similar obligations. Policymakers are caught in the middle, trying to regulate without undermining a sector that has proven its ability to attract visitors.
The numbers from AirDNA underline just how significant this sector has become. When millions of overnight stays are concentrated in private homes rather than hotels, the implications for urban planning, infrastructure, and taxation cannot be ignored. For Greece, the challenge is even sharper: tourism remains a pillar of the economy, and short-term rentals are now an integral part of that fabric. Ignoring them is no longer possible; shaping them is essential.
The summer surge of 2025 shows that the appetite for this form of accommodation has not peaked. Guests continue to book, and in Greece, bookings are growing in numbers. The task ahead lies in turning this growth into something sustainable — not only for visitors and property owners but also for the communities that host them.
