Short-term rentals in Greece: how Crete became the leader in the sector
Short-term rentals are becoming a leading force in Greece’s real estate market. Crete has become the center of activity, with more than 36,000 properties available for short-term rental.
In just a few years, Crete’s rental sector has undergone a major transformation. Its growth rate is one of the best in Europe, primarily due to the diversity of its offerings. The island achieved these results by implementing a comprehensive strategy that included:
– measures to improve the tourism sector in Crete and increase its economic attractiveness;
– the implementation of major infrastructure projects;
– an increase in property values;
– a change in tenant policy.
Many property owners have recognized the high potential of the short-term rental market and have abandoned long-term rentals.
Factors affecting the Greece market
Experts cite Crete’s dynamic infrastructure development as a driver of growth in the sector. The government is making serious efforts to improve transportation. One of the most significant projects is the construction of a new international airport. Once operational, this facility is expected to be one of the most popular in Greece. Improved transport accessibility will increase the number of tourists and stimulate the local economy.
Another factor contributing to the sector’s development is rising property values. Prices have jumped significantly over the past five years. A particularly sharp surge in prices was recorded after countries reopened their borders following the pandemic. The lifting of restrictions allowed travelers to take vacations again. Crete has become one of the most popular destinations in the Mediterranean. The rapid growth in demand for rental accommodations has prompted property owners to offer short-term rentals.
The short-term rental market offers several advantages:
– owners have more opportunities to increase their income;
– high occupancy rates during peak seasons;
– better control over real estate properties.
These factors make the short-term rental market attractive, encouraging more and more owners to switch from long-term to short-term rentals.
Experts predict that the short-term rental market in Crete will grow in the coming years. The key growth factors will be the completion of infrastructure projects and Crete’s high tourist appeal. Thanks to its picturesque nature, rich cultural heritage, and comfortable vacation conditions, Crete continues to attract travelers.
However, the market faces a number of risks. The rapid rise in housing prices is reducing affordability for residents. The increase in rental property supply is putting pressure on the social balance. The island’s authorities are aware of these threats and are trying to balance tourism development with the interests of the population.
Experts believe that, in the near future, the sector will require stricter regulatory measures. These measures will protect residents’ interests and promote sustainable market development.