Greece Witness its Short-Term Rental Market Sees Fifteen Percent Price Rise in February 2026, Despite New Decline in Supply, Demand and Occupancy, Reflecting Shifting Travel Trends

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Greece witness its short-term rental market, as of February 2026, has shown a significant increase in prices despite a drop in demand and supply. According to the latest data provided by AirDNA, the average daily rates (ADR) have increased by 15% compared to the previous year, reaching 96 euros, slightly above the European average. In addition, the revenue per available rental (RevPAR) has shown a significant increase of 10%.

Declining Demand and Supply in Greece

Alongside the price increases, however, Greece’s short-term rental market is grappling with a 6% decline in the number of available listings compared to February 2025, placing it among the few major European markets to see such a contraction. The reduction in supply reflects a broader trend that has impacted Greece’s tourism industry, with fewer properties available to accommodate travelers.

Additionally, demand has fallen by 6% year-on-year, contributing to a decline in occupancy, which dropped to 55%—a four percentage point decrease from the previous year. This decrease in occupancy points to the ongoing shift in tourism patterns, with demand for short-term rentals fluctuating in line with seasonal trends rather than any permanent downturn in interest for Greece as a destination.

Shifting Travel Patterns Behind Demand Decline

According to AirDNA, the decline in demand is tied to shifting travel patterns, reflecting broader seasonal changes in the tourism market. Travelers continue to prefer visiting Southern Europe during the shoulder seasons and peak summer months, making the winter period relatively softer. This trend has impacted demand for short-term rentals, with fewer visitors opting to travel to Greece during the winter months. These seasonal variations are common across Southern Europe, where winter tourism typically experiences slower periods before the summer rush.

Greece’s tourism industry has also been influenced by this seasonal fluctuation, as the demand for accommodations shifts in line with changing travel habits. This shift highlights the importance of shoulder seasons in maintaining consistent tourism activity and underscores the necessity of adapting rental and tourism strategies to evolving patterns.

The Impact of Geopolitical Tensions on Greek Tourism

While tensions in the Middle East raised concerns about potential disruptions to tourism in Southern Europe, Greece’s short-term rental market has largely remained unaffected by the escalation in geopolitical tensions. Data from AirDNA revealed no significant rise in cancellations for Greece during the initial phase of the conflict, suggesting that Greece’s reputation as a stable and safe travel destination remains strong.

However, nearby markets such as Cyprus and Turkey were more significantly impacted. Cyprus recorded a sharp 183% increase in cancellations, and Turkey saw a 27% rise. These changes underscore the influence of proximity to conflict zones on travelers’ decisions. In contrast, Greece’s short-term rental market experienced limited disruptions, further solidifying its position as a top European destination.

Broader European Trends Reflect Similar Pressures

Across Europe, the short-term rental market faced similar pressures in February 2026. Overall demand fell by 4.5%, even as supply increased, creating a demand-supply imbalance. This trend resulted in lower occupancy rates across most major European markets, including Greece. However, pricing trends have shown signs of recovery, as average daily rates (ADR) are now returning to positive growth after months of decline.

These trends indicate a market adjustment in response to the post-pandemic surge in travel, with demand moving toward more typical seasonal patterns. As spring and summer approach, booking trends show an increase in interest for upcoming months, which will likely bring demand back into balance across Europe, including Greece.

Tourism Impact: How Greece’s Short-Term Rental Market Affects the Broader Economy

Despite the decline in demand and occupancy, Greece’s short-term rental market remains a critical driver of the country’s tourism economy. The ability to maintain pricing power amid a slowdown reflects the resilience of Greece’s tourism sector, even during softer seasons. With Greece continuing to rank as one of the most desirable destinations in Southern Europe, the increase in average daily rates suggests that travelers are still willing to pay for a quality experience, particularly in premium locations.

The increase in prices and the growth in RevPAR are positive signs for the Greek economy, as they signal that tourism continues to contribute significantly to revenue generation. In particular, as short-term rentals remain an attractive option for travelers seeking a more personalized experience, Greece is well-positioned to benefit from the shift in tourism preferences toward more authentic and boutique accommodation experiences.

Navigating Greece’s Evolving Short-Term Rental Market

The Greek short-term rental market’s fluctuations in demand and occupancy levels notwithstanding, the resilience of the market in terms of pricing is a testament to the strength of Greece’s tourism industry. Although the decline in the number of available units and demand during the winter months may be cause for alarm, it is merely a reaction to the tourism trends and travel seasons that are characteristic of Southern Europe.

In the future, Greece’s ability to adapt to these changing trends and tourism dynamics will be vital for the continued growth and development of Greece’s tourism industry. The trends that have recently been set by Greece are indicative of the fact that the nation is evolving and changing to incorporate both luxury and sustainable tourism. Greece’s advantageous position, coupled with excellent infrastructure and tourism potential, makes it an important player in the global tourism industry.