Greece’s short-term rental market is undergoing a shift, as a surge in available properties is beginning to outpace even the rising demand from travelers. New data from analytics firm AirDNA reveals that occupancy rates for rentals listed on platforms like Airbnb fell to 45% in March 2025, down from 49% during the same month last year.
The decline in occupancy is not due to waning interest—demand has actually increased. The number of overnight stays booked rose by 10% year-over-year, reaching 522,000 compared to 474,000 in March 2024. However, the supply of available properties also expanded by 5%, and the total number of nights on offer grew even more sharply—by 20%, from 964,000 to 1.15 million. The result has been a dilution effect: more options on the market have made it harder for hosts to maintain high occupancy levels, even amid growing interest.
This shift comes as Greece experienced a mild slowdown in inbound travel during March. Many international tourists opted to delay their visits until April, aligning their trips with the Orthodox Easter holiday, a popular time for travel within the region.
Traveler preferences have also played a role in shaping market dynamics. Properties at the highest and lowest ends of the price scale—luxury and budget accommodations—fared relatively better than mid-range listings. Occupancy in these two categories dropped by an average of 6.6%, while mid-tier rentals saw steeper declines, approaching 9%.
The figures point to a growing mismatch between supply and demand in the middle of the market, possibly reflecting shifting consumer priorities or greater competition among hosts in that segment.
Thessaloniki, Greece’s second-largest city, emerged as a notable exception to the national trend. There, high-end and luxury rentals posted year-over-year increases in occupancy, rising by 4% and 6% respectively. Meanwhile, more affordable properties underperformed, reinforcing a broader pattern seen across global travel markets: a rising preference for premium experiences among travelers willing to spend more for comfort, quality, and exclusivity.
