Athens Short-Term Rental Market Holds Its Edge Amid Regulatory Constraints
Athens, February 2, 2026 – The short-term rental market in central Athens continues to demonstrate remarkable resilience and profitability, significantly outpacing traditional long-term residential leases. This trend persists despite a mild downturn in key financial indicators during 2025 and the introduction of new regulatory constraints.
A primary driver for property owners to maintain their presence in the short-term rental sector is the substantial income gap, which stands at a minimum of €200 per month compared to long-term leases. This financial incentive remains a powerful motivator, ensuring the continued vibrancy of the market.
Profitability Remains High Despite Slight Decline
In 2025, the average revenue per available unit in the short-term rental market experienced a 4% decrease compared to the previous year. This decline is largely attributed to an expanding supply of short-term rental properties and a slight reduction in average nightly rates.
Nevertheless, short-term rentals continue to be considerably more profitable for property owners. Based on occupancy levels and average daily rates, the annualized monthly revenue from short-term rentals in central Athens was approximately €1,740 in 2025. After accounting for operating expenses, management fees, and taxes, the net monthly profit is estimated to be around €800.
In stark contrast, the average net income from leasing a 75-square-meter apartment on a long-term basis does not exceed €600 per month. This figure does not even factor in additional costs such as major maintenance works or property-related taxes, including Greece’s annual real estate levy.
Structural Advantages Reinforce Appeal
Beyond the higher financial returns, short-term leasing offers several structural advantages that further enhance its appeal to property owners. These include the advance payment of rental income and more frequent oversight of the property’s condition. These factors significantly mitigate risks associated with unpaid rent or extensive wear and tear, solidifying the attractiveness of short-term rentals even with slightly softer yields.
As a result, short-term rentals remain the financially preferred option in central Athens, even as the market shows signs of stabilization rather than rapid growth.
Continued Growth Amidst Regulatory Changes
By the end of 2025, the number of short-term rental units in the city center had increased to approximately 14,350, marking a 12% rise compared to 2024. This expansion is particularly noteworthy given that no new property registration numbers – the mandatory licensing requirement for short-term rentals – have been issued in the affected municipal districts since the autumn of 2024.
The continued growth can largely be explained by the timing of the regulatory announcement. When the forthcoming restrictions were made public in late 2024, many property owners proactively secured registration, even if they did not have immediate plans to operate in the short-term rental market. A substantial portion of these properties subsequently entered the market during 2025, sustaining the upward trend in supply.
The market’s ability to maintain its growth trajectory despite these challenges underscores the strong demand for short-term accommodation in Athens and the persistent financial benefits for property owners.
Source: https://www.dnews.gr/eidhseis/news-in-english/570199/athens-short-term-rental-market-holds-its-edge-amid-regulatory-constraints
