Airbnb is “sweeping” Europe - Demand is growing faster than supply in Greece

2024 was another record year for short-term rentals in Europe, with Greece following the general upward trend of the market.

According to data from AirDNA, demand created 440 million nights in short-term rental accommodations, marking an increase of 17.3% compared to 2023. In December alone, overnight stays reached 28.9 million, a historic record for this month, and were up 13.6% from last year.

On the supply side, after a strong 2023, listings growth in the first 6 months of 2024 was 15.7%, before slowing to 12.9% as fewer new listings were added. Overall, 1.3 million new listings were added in 2024, with an average monthly number of 3.5 million in Europe, up 14.2% year-on-year.

As a result, occupancy rates increased by 1.8% compared to 2023 (to 54.6%) and by 8.1% compared to 2019, in contrast to the US where occupancy rates have decreased compared to 2019 levels. In fact, Europe recorded a strong increase in occupancy rates in the fall with increased demand during the shoulder season that pushed occupancy rates to an increase of more than 2% in October and November.

At the same time, after the double-digit increase in 2023, prices (ADR) continued to increase, but at a slower pace (4.4%), with the average reaching 172 euros. With price growth slowing, annual revenue growth (RevPAR) decreased from 8.4% in 2023 to +5.9% in 2024. The average revenue per available night in 2024 amounted to €97 and total revenue for European owners to €76 billion.

In most countries, the increase in supply kept pace with the increase in demand, resulting in relatively stable occupancy levels. Greece, however, seems to have moved into a pattern where demand growth “runs” faster than the increase in listing supply, significantly increasing occupancies. It is no coincidence that the average occupancy of listings in Greece showed one of the highest increases in the EU (+2.7%). High occupancy growth was also recorded in Croatia (+6.5%), Spain (+5.2), and Norway (+2%).

It is noted that according to AirDNA, for September, October, and November 2024 alone, the demand for short-term rentals in Greece recorded a strong increase of 20.1%, indicative of the great travel interest in the fall.

The most recent available data from INSETE Intelligence also show an acceleration in demand in Greece. The analysis of accommodation occupancy for the first quarter of 2024 shows stability compared to the first quarter of 2023, despite the increase in the supply of accommodation and beds. This suggests that demand increased in parallel with supply, leading to the maintenance of occupancy levels. During the second quarter of 2024, an increase in occupancy was observed, indicating greater demand during this period, and in the third quarter of 2024, accommodation occupancy remained stable. Although September recorded a small increase in occupancy compared to 2023 (45% vs. 43%), the overall picture shows stability and strong demand during the summer. The fourth quarter of 2024 began with an increase in October which continued in November at a slowing pace.

+19% supply in Athens, with occupancy decline

At the city level, AirDNA research showed that strong occupancy performance in Europe translates into greater pricing power and higher revenue per night (RevPAR) for hosts. Conversely, in markets where supply grew faster than demand compared to 2023, occupancy fell as guests had more accommodation options, leading to fewer average bookings per host.

Cities such as Naples, Belgrade and Paris, which had strong growth in listings, recorded the largest decline in occupancy as supply outpaced demand. In Athens, which saw an increase in supply, with listings up 19%, occupancy fell 3%, and revenue (RevPAR) increased by 3%.

In contrast, cities such as Calp, Spain, Budva, Montenegro, and Marbella, Spain, where demand growth was equal to or above the increase in supply, resulting in an occupancy increase of more than 8%.

Regarding 2025, AirDNA records great demand dynamics in Europe, and specifically...

-annual increase of 18% in booking demand for the period from February to July

-12% increase in February bookings

-smaller increase for March, as Easter this year is included in the calendar in April

-44% increase in bookings for April.

The 5 Trends of 2024

AirDNA data also reveals some travel trends that prevailed in 2024...

-Travelers continue to seek out destinations off the beaten track, resulting in lesser-known and more accessible destinations such as Albania, Kosovo and Moldova recording an explosion in demand and available nights with listings exceeding +40% year-on-year.

-More travelers are now booking at the last minute, continuing for the second year this new trend of significantly shorter periods until the trip is realized compared to 2019. The time “window” between booking and arrival in short-term rentals in 2024 decreased on average to 23 days, i.e. it shrank by 3 days compared to 2023 levels. The most popular month for the most spontaneous trips last year was January with an average “window” of just 12 days, in contrast to August which recorded the highest average corresponding period (33 days).

-Larger and more expensive homes are leading the increase in occupancy in Europe. Luxury properties with 3-5 bedrooms recorded an increase in occupancy of more than 3%. In contrast, affordable properties with 1-2 bedrooms showed a moderate increase or decrease in occupancy.

-Specialty properties stand out as a category in the increase in supply, although houses and apartments continue to dominate the short-term rental market. In 2024, specialty properties grew by 12%, accounting for 3% of total monthly available listings. Over the past five years, property types such as treehouses, campers/RVs, dome homes, tents and tiny houses have seen the largest increase in available listings.

-Cleaning fees continue to represent a large proportion of landlords’ revenue. Cleaning revenues in Europe in 2024 amounted to €4.1 billion, representing almost 6% of total short-term rental revenue. In Greece, cleaning services are offered by 36% of active listings, one of the smallest numbers in Europe, while, conversely, they dominate in Germany and the Netherlands.

RELATED TOPICS: Greece, Greek tourism news, Tourism in Greece, Greek islands, Hotels in Greece, Travel to Greece, Greek destinations, Greek travel market, Greek tourism statistics, Greek tourism report