The supply of short-term rental housing is now greater than that of the hotel market.
What has happened
Despite the measures taken by the government, the supply of short-term rentals in Greece continues to grow. The number of available short-term rental units already exceeds the number of hotel rooms, and it is expected to surpass 1 million for the first time this summer.
Over the past five years, the supply of short-term rentals has increased by 300,000 units, while the number of hotel rooms has grown by only 30,000.
Economic impact
- Short-term rentals have become a significant tourism segment with an annual turnover of €3.5 billion, constituting 35% of the hotel sector turnover.
- The growth of short-term rentals is putting pressure on infrastructure such as ports, airports, transportation, water supply, and electricity supply systems, as well as impacting housing availability for local residents.
Possible regulatory measures
The government is considering measures to regulate short-term rentals, such as:
- Limiting the duration during which properties can be rented out (up to 60-90 days).
- Restricting the number of properties available for short-term rentals in housing-deficit areas.
Consequences
- The growth of short-term rentals has both positive and negative aspects.
- On the positive side, it provides additional opportunities for accommodating tourists and contributes to economic development.
- On the negative side, it places a strain on infrastructure and exacerbates the problem of a shortage of affordable housing for local residents.
- The government is seeking to strike a balance between supporting the growth of the tourism sector and protecting the interests of the local population.
Source: Ekathimerini
Photo by Dragos Gontariu on Unsplash
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