Greek Airbnb rental industry heading towards saturation


Airbnb rentals have transformed the Greek hospitality sector, particularly in Athens. The number of flats that have been taken off-market to serve as Airbnb short-term tourist rentals is large and growing.

According to Greece’s Independent Authority for Public Revenue (AADE), between January 1st, 2018 and January 30th, 2019:

  • 51,513 property units were registered for short-term rental purposes in Greece

  • The rental turnover from these units reached € 186,000,000

  • The comparable rental turnover from short term rentals in 2017 was € 62,000,000

According to a separate study by the Greek Centre for Planning and Economic Research (KEPE), a total of 126,000 units have been registered on different platforms (Airbnb, HomeAway, Booking.com and others). (See NavInvest’s article of 28 November 2019).

AirDNA is an analytics platform that provides insights on the performance of vacation rental properties worldwide.

AirDNA’s data for Greece states that the number of available entire home listings on Airbnb and HomeAway increased from 76,369 in December 2018 to 94,592 in December 2019.

AirDNA also reported that during the same period, average, year-round revenue per available rental (RevPAR) decreased from € 47.98 to € 43.46 in 2018.

Occupancy rates for all listings declined from 45.4% to 38.6%.

The average daily rate last December was up by 6.5% to € 112.48, from € 105.62 in December 2018.

Analysis on Greek bookings’ revenue growth rate on short-term rental platforms [5]

AirDNA’s international sales manager, Aimee Trusler, spoke at the 2nd BnB Guest Conference in Athens which took place on 25 January 2020.

“What this suggests to us is that Greece is at a critical point, its heading towards market saturation which is an indication that supply is much higher than the demand,”

“This does not necessarily mean a bad thing but what it does mean is that it is more important now than ever to professionalize your listings to stay ahead in such a competitive market,”

Trusler also explained that despite the increase of competition in the short-term rental market, there are still Greek destinations that have managed to keep demand high during the same period and experienced revenue growth.

The island of Andros in the Cyclades was in the lead of the top five growth markets last year with a rise of 25.02% of daily RevPAR growth, followed by Lesvos (19.5%), Thessaloniki (14.18%), Kavala (4.28%) and Naxos and the Small Cyclades (3.77%).

Trusler added that Athens remains a good place for an Airbnb listing with an “A” market rate. Athen’s leading neighbourhood in 2019 was the Zappeion area with an average ADR of € 75, an increase of 58% from the previous year.

NavInvest Greece supports hotel and tourism accommodation investments in Greece, and has extensive experience in due diligence on tourism and property investments. Please contact us for more information relating to hotel and property investments in Greece.

Photo (c) Economy Today

Sources:

Greece Heading Towards Saturation of Airbnb Rentals Greek Travel Pages, 03 February 2020

Greek short-term rental industry heading towards saturation Short Term Rentalz, 05 February 2020

Η Ελλάδα εγκαταλείπει τα Airbnb Economy Today, 03 February 2020

Ξεφουσκώνει η μόδα του Airbnb στην Ελλάδα Banks.com.gr, 06 February 2020

https://news.gtp.gr/2020/02/03/greece-heading-towards-saturation-airbnb-rentals/


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