Greece Faces Growing Tourism Crisis Amid Surge in Short-Term Rentals

Published on December 27, 2025

Greece is a favorite place for British tourists, but for the accommodation population challenges Greece is facing are of concern. A growing number of people is using platforms like Airbnb. A crisis has formed where the number of short-term rentals is growing more quickly than available hotel rooms. Affected areas of tourism are becoming concerning. Housing has also taken a hit.

The Growth of Short-Term Rentals in Greece

Data reveals that Greece is experiencing an unprecedented rise in the number of short-term rental properties. According to the Institute of the Greek Tourism Confederation (INSETE), the country saw a record high in July 2025, with 245,944 listings on short-term rental platforms. This surge is equivalent to more than one million rental beds, surpassing the number of hotel beds available, which is around 900,000.

This significant increase in short-term rentals is putting pressure on the local accommodation market, leading to concerns among traditional hoteliers. The growing trend of vacation rentals is changing the landscape of Greece’s tourism industry, making it harder for travelers to find hotel accommodations, especially during peak seasons.

Housing Market Under Strain

The rapid growth of short-term rentals is also causing major issues in the local housing market. With a larger number of properties now catering to tourists, local Greeks are struggling to find affordable homes to rent. In some popular tourist areas, long-term rental options are becoming scarce as property owners prefer the higher profits from short-term lets.

The situation is particularly dire in Athens, where certain neighborhoods have become hotspots for short-term rentals. Areas like Kolonaki, Koukaki, Pangrati, and Exarchia are seeing rising rental prices, as more properties are converted into tourist accommodations. Locals fear this trend will make it increasingly difficult for them to access housing and drive prices even higher.

Measures to Control the Rental Market

In response to the growing crisis, Greece has implemented several measures to regulate the short-term rental market. For example, new licenses for tourist rental homes in central Athens were suspended in 2024. This ban is set to continue until 2026 for areas such as Kolonaki and Koukaki. The government has also required all holiday homes to be declared, with hefty fines imposed for unregistered properties.

Despite these efforts, the number of short-term rental properties continues to rise across Greece, exacerbating concerns about housing availability and affordability for locals. This issue is mirrored in other Mediterranean countries like Spain, where short-term rentals are growing at a faster rate than hotel accommodations.

Tourism Boom and Economic Impact

The influx of tourists is also contributing to the economic changes in Greece. From January to October 2025, the number of inbound travelers increased by 4.4% compared to the previous year. This boost in tourism is partly driven by a rise in visitors from the UK, with the number of British tourists growing by 6.6%. The US market is also seeing growth, with a 2.0% increase in American visitors.

However, this tourism boom is not without its challenges. While the economy benefits from increased tourism, the rapid expansion of short-term rentals is making it harder for both visitors and locals to find appropriate accommodation. The rise of these rentals is threatening to reshape Greece’s tourism model, causing a shift from traditional hotels to vacation homes, which may not be sustainable in the long term.

The Situation in Spain: A Warning for Greece

Spain is facing a similar issue, with short-term rentals growing at an alarming rate. The country now has over 351,000 short-term rental properties, offering 1.75 million beds. In some cities, short-term rentals are outpacing hotel accommodations. Reports show that bookings for short-term rentals in Spain increased by 13.9% in the first half of 2024, while hotel bookings grew by only 1.3%.

Spain’s rapid shift toward short-term rentals has raised alarms, as it is leading to overcrowded streets, higher rental prices, and a change in the way tourists experience popular destinations. This situation in Spain is serving as a cautionary tale for Greece, which could soon face similar challenges if the current trend continues.

What Travelers Should Know

For those planning a trip to Greece, it’s important to be aware of the accommodation situation. While traditional hotels are still available, the rise of short-term rentals has made booking a place to stay more challenging, particularly in busy areas like Athens, Santorini, and Mykonos. Travelers are advised to book accommodations well in advance to avoid disappointment.

Additionally, those looking to stay in short-term rentals should be mindful of the regulations. The Greek government has cracked down on illegal vacation rentals, and hefty fines are being imposed on unregistered properties. Be sure to choose accommodations listed on trusted platforms like Airbnb or Booking.com, where hosts are required to follow local laws.

Looking Ahead: The Future of Tourism in Greece

While Greece deals with the effects of this change in the tourism market, the future of its accommodation market will remain uncertain. Local housing issues, increasing prices, and the ever-growing prevalence of short-term rentals will all need to be resolved if the tourism and housing industries are to remain in equilibrium.

Some measures have been taken by the Greek government to try to control this market, but more may be needed to find a balance between accepting more tourists and the needs of the tourists and the local population. Travelers to Greece will have the chance to experience a new environment, but they will have to be more methodical and intentional with the planning of their trip.

Greece’s current tourism crisis has been caused by the increased prevalence of short-term rentals, which has been affecting accommodation markets worldwide. With more countries being faced with the same issues, it’s important for the government and tourists to find a way to adapt to the current issues in tourism.