Greece’s Short-Term Rental Prices Soar by 15% in February as Market Faces Declining Demand and Supply Amid Shifting Travel Trends

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In February 2026, Greece’s short-term rental market experienced a surprising price increase, with average daily rates (ADR) rising by 15 percent compared to the same period last year. This upward trend is noteworthy, especially given the concurrent decline in both demand and supply in the sector. According to AirDNA’s latest data, the country’s market is displaying significant pricing resilience despite facing several challenges that have impacted the performance of its short-term rental sector.

Pricing Resilience in the Face of Weaker Demand

Despite a weaker-than-expected winter season, Greece’s short-term rental sector managed to record a solid increase in prices. The average daily rate (ADR) for rentals in the country reached 96 euros, surpassing the European average. Additionally, revenue per available rental (RevPAR) increased by 10 percent, a testament to the resilience of Greece’s pricing strategies in a competitive market.

However, the market also faced several challenges. Both demand and supply saw a decline, with available listings falling by 6 percent compared to the previous year. This places Greece among the few major European markets experiencing contraction in supply. Demand also fell by 6 percent year-on-year, resulting in a noticeable drop in occupancy rates. The occupancy rate decreased to 55 percent, reflecting a decline of 4 percentage points compared to the same time last year.

Shifting Travel Patterns: A Key Factor in Weaker Winter Performance

The decrease in demand and supply for short-term rentals in Greece does not suggest any fundamental weakness in the sector but rather points to shifting travel patterns. As traveler preferences continue to evolve, there is a noticeable movement toward the shoulder seasons and peak summer months, leading to softer demand during the winter periods. This trend is particularly evident across Southern Europe, where many destinations are experiencing similar seasonal fluctuations in tourism demand.

According to AirDNA, these seasonal shifts are not necessarily alarming but reflect a broader adjustment to the typical patterns seen in post-pandemic tourism. While demand for short-term rentals in Greece has softened during the winter, there is optimism that bookings will pick up in the coming months as the market adjusts to the pre-pandemic seasonal expectations.

Middle East Tensions Have Limited Impact on Greece’s Market

Despite geopolitical tensions in the Middle East, which have affected travel patterns across Europe, Greece’s short-term rental market has shown resilience. Unlike neighboring markets like Turkey and Cyprus, which saw significant rises in cancellations, Greece experienced only a minimal impact. Cyprus saw a staggering 183 percent increase in cancellations, while Turkey experienced a 27 percent rise. In contrast, Greece’s short-term rental bookings remained largely unaffected by the Middle Eastern conflict, indicating that traveler concerns have not significantly impacted the demand for rentals in the country during the early stages of the crisis.

Wider European Market Faces Similar Pressures

While Greece’s short-term rental market has proven resilient, it is not alone in facing pressure from declining demand. Across Europe, the short-term rental market also saw demand fall by 4.5 percent in February 2026. This decline occurred even as supply in the market increased, leading to an imbalance that affected occupancy rates in many of Europe’s major tourist destinations. Despite these challenges, there are signs of pricing recovery, as average daily rates returned to positive territory following several months of decline.

This suggests that, while winter demand remains weaker than expected, the market is poised to recover as it shifts towards more typical seasonal patterns. As the travel industry continues to adjust to these changes, short-term rental markets across Europe, including Greece, are expected to see more stable growth in the upcoming months.

Limited Impact from Global Travel Shifts and Geopolitical Factors

One of the major takeaways from the current state of the Greek short-term rental market is its ability to withstand external disruptions. While geopolitical factors, such as tensions in the Middle East, have caused ripples across the broader European tourism industry, Greece’s market has managed to weather these storms with relatively minimal disruption. This is a testament to the strength of Greece’s tourism infrastructure and its positioning as a reliable destination for international travelers, even in uncertain times.

Nevertheless, the Middle East tensions have had a more pronounced effect on nearby destinations. With Cyprus and Turkey experiencing sharp increases in cancellations, Greece’s ability to maintain its momentum indicates its continued appeal as a stable and attractive destination for short-term rental guests.

Looking Ahead: Greece’s Rental Market and the Shift to Seasonal Trends

As short-term rental performance in Greece continues to be influenced by changing travel patterns, the sector’s focus is expected to shift towards the upcoming shoulder and peak seasons. With bookings in Greece expected to pick up, the rental market is likely to adjust to the more traditional patterns of higher demand during the spring and summer months. These shifts should help sustain the recovery and pave the way for a more predictable and profitable tourism season in 2026.

While the winter months were softer than anticipated, the broader picture for Greece’s short-term rental sector remains positive, especially with the potential for growth in the coming months. The resilience of pricing strategies and revenue performance further suggests that Greece’s short-term rental market is on a stable path to recovery, even in the face of external pressures and seasonal fluctuations.

Conclusion: A Resilient Market Poised for Stronger Growth

Despite the challenges facing the short-term rental market in Greece, the sector has shown remarkable resilience, with pricing strategies proving effective and the broader recovery trends continuing. As the market adapts to seasonal shifts and external pressures, Greece is well-positioned for a stronger summer season, with demand expected to rise and occupancy rates improving. While supply and demand faced some setbacks in February 2026, the long-term outlook for Greece’s short-term rental market remains optimistic, especially with growing interest in seasonal travel and a stable geopolitical environment.