Thursday, May 22, 2025
Greece has emerged as Europe’s top summer travel destination in 2025, driven by an impressive surge of over twenty percent in Airbnb bookings, according to fresh data from AirDNA. This exceptional growth reflects rising global demand for Greece’s coastal beauty, cultural heritage, and affordability—especially as travelers book earlier and diversify their destination choices beyond traditional hotspots like Santorini and Mykonos. However, this tourism boom comes as the Greek government enforces new short-term rental laws aimed at curbing the housing crisis by restricting non-residential properties from being listed on platforms like Airbnb, signaling a strategic balance between tourism growth and urban housing stability.
Greece has firmly secured its spot as Europe’s leading summer getaway for 2025, fueled by a remarkable year-on-year increase of over 22 percent in short-term rental bookings through platforms like Airbnb. According to a comprehensive report by AirDNA, which monitors short-term rental activity across the continent, Greece leads the southern Mediterranean in demand for June, July, and August—outpacing nearly every other European country.
Among the 20 most active travel destinations in Europe, 18 recorded booking growth of over 10 percent for summer 2025. However, Greece emerged as the undisputed leader among southern hotspots, a testament to its blend of cultural richness, scenic diversity, and comparative affordability. This performance underscores the nation’s continued magnetism for both regional and international visitors.
Key Drivers Behind Greece’s Airbnb Booking Surge
Several pivotal factors are shaping this robust growth, which not only signals a broader European travel revival but also enhances Greece’s stature as a resilient and adaptive tourism economy.
1. Booming Returns for Local Hosts
Occupancy rates in Greek short-term rentals have spiked sharply, bringing in increased revenues for property owners across popular islands and mainland cities. The surge in demand is helping boost economic activity within local communities while providing lucrative opportunities for small-scale property investors.
2. Higher Revenue per Stay
The rise in Average Daily Rates (ADR) for Airbnb rentals in Greece has helped offset inflation-driven operational costs. Travelers are willing to pay more for quality accommodations, which means higher margins for hosts and greater returns on investment for those participating in the short-term rental sector.
3. Earlier Travel Planning
AirDNA reports also indicate that travelers are locking in their summer stays earlier than in previous years. This extended booking window reflects increased traveler confidence, improved travel logistics post-pandemic, and a desire to secure accommodations in high-demand areas before prices rise further.
4. Destination Diversification
While world-famous islands such as Santorini and Mykonos continue to attract global attention, a new wave of interest is rising in lesser-known regions like Nafplio, Thessaly, and the Peloponnese. Inland and mainland destinations are seeing increased visibility and booking volume as travelers seek authentic, less crowded alternatives.
Regional Breakdown of Airbnb Growth Across Europe
The Greek summer boom is part of a larger pattern of accelerated tourism activity across Europe. Notable growth figures from other countries in the AirDNA report include:
- Poland: 37% increase
- Czech Republic: 30%
- Norway: 27%
- Belgium & Germany: 24% each
These strong surges point to a post-pandemic normalization of European travel behavior, with short-term rentals reclaiming their position as a preferred accommodation option for many.
In contrast, several northern European destinations reported more modest growth:
- Finland: 8%
- Denmark: 9%
- Ireland: 10%
- United Kingdom: 10%
- Hungary: 12%
While these figures still represent positive momentum, they lag significantly behind southern and central Europe—highlighting the region-specific appeal of Mediterranean climates and experiences during the summer season.
New Laws Tighten Grip on Greece’s Airbnb Rental Market
Even as bookings soar, Greece’s short-term rental market is undergoing a significant legal transformation. In an effort to address the country’s deepening housing crisis, the Greek government has implemented sweeping restrictions aimed at curbing Airbnb-style rentals that were converted from non-residential properties.
Key Restrictions Imposed:
- Prohibited Listings: Properties previously used as warehouses, storage units, industrial spaces, or basements—regardless of renovations—are now banned from short-term rental platforms.
- Residency Classification Rule: Only properties officially classified as primary residences under Greek law (or those reclassified before July 2011) can now be listed for short-term rental.
Thousands of listings across the country—particularly in urban areas like Athens and Thessaloniki—are expected to be delisted as a result of this new legislation. Many of these had been renovated specifically for tourist rental income, reflecting a sizable portion of the country’s informal rental market.
Balancing Tourism Gains with Housing Equity
Greece’s explosive growth in summer tourism, while economically beneficial, has placed added strain on the country’s long-term housing supply. Local residents, especially in urban and high-demand tourist areas, have struggled to secure affordable rental housing due to property owners prioritizing short-term gains from platforms like Airbnb.
This dual reality—tourism-led prosperity coupled with urban housing scarcity—has prompted the government to intervene. The legislative action represents a growing trend among popular tourist nations seeking to balance inbound visitor numbers with sustainable living conditions for local populations.
Impact on Property Owners and Tourism Sector
While the regulation marks a turning point for Greece’s rental property market, it could have a long-term stabilizing effect. By limiting Airbnb-style conversions, the government aims to:
- Stabilize Housing Costs: Reduce pressure on the long-term rental market by returning inventory to local residents.
- Encourage Responsible Hosting: Promote quality over quantity in the short-term rental sector, prioritizing properties that comply with zoning and residential standards.
- Preserve Community Fabric: Prevent residential neighborhoods from being overtaken by transient visitor populations, thereby preserving cultural cohesion.
For property investors, the shift will likely cause some financial strain, particularly for those who renovated previously ineligible properties. However, this also opens the door to a more professionalized and regulated market—one that may ultimately offer better support, legal clarity, and fair competition for compliant hosts.
Greece’s Competitive Tourism Advantage in 2025
Even with newly imposed restrictions, Greece continues to stand out as a leading force in Europe’s 2025 summer tourism landscape. Key strengths include:
- Rich Cultural Heritage: From ancient ruins to Byzantine monasteries, Greece continues to offer travelers timeless experiences steeped in history.
- Natural Beauty: Stunning beaches, mountainous landscapes, and island paradises offer diverse options for every type of traveler.
- Affordability: Compared to western European destinations, Greece remains relatively affordable, especially in less tourist-saturated regions.
- Improved Infrastructure: Enhancements to ports, airports, and regional connectivity are making it easier to explore lesser-known destinations.
The combination of these assets makes Greece not only a hotspot for 2025 but also a strong contender for sustained tourism leadership in the years ahead.
Greece at the Crossroads of Tourism and Regulation
As Greece soars in Airbnb bookings and reaffirms its status as a leading summer destination, it also confronts the realities of sustainable tourism management. The government’s firm stance on short-term rental regulations highlights a growing effort to balance economic gain with social responsibility.
Greece is leading Europe’s 2025 summer travel boom with over twenty percent growth in Airbnb bookings, driven by early travel planning, rising demand, and destination diversification. At the same time, new government restrictions on short-term rentals aim to address the country’s housing shortage.
With early travel planning, evolving destination preferences, and surging interest in immersive cultural experiences, Greece is embracing the future of tourism with open arms—but not without drawing clear boundaries.
For travelers, investors, and tourism stakeholders alike, 2025 marks a defining year for Greece—where growth and governance converge to shape the next chapter of Mediterranean travel.
