Airbnb vs. Long-Term Rentals: Profitability in Greece by City

Published on April 23, 2026 and written by Cyril Jarnias

As the real estate market in Greece continues to evolve, many property owners face a crucial dilemma: opting for the quick profitability of an Airbnb rental or choosing the stability of a long-term lease. With the rise of emerging tourism, the growing popularity of Airbnb has caught the attention of investors looking to maximize their returns. However, the financial security offered by long-term rentals cannot be ignored, especially in a country where economic fluctuations can influence market trends.

Detailed Profitability Comparison

This article delves into a detailed profitability comparison between these two options, examining key cities in Greece where these rental practices are most common.

Introduction to Rental Profitability in Greece

The rental market in Greece has undergone a profound transformation over the past several years, marked by a continuous rise in demand and prices, particularly in major cities and coastal and island areas. This dynamic is driven by the country’s tourist appeal, the development of short-term rental platforms like Airbnb, and a limited housing supply facing an influx of investors.

Geographic Factors Influencing Profitability

• Metropolises such as Athens and Thessaloniki show high occupancy rates due to their economic, academic, and cultural appeal.
• The islands (Corfu, Mykonos, Crete) benefit from increased demand for high-end or premium seasonal rentals.
• The Mediterranean coast also attracts an international audience seeking mild weather year-round.

Major Economic Factors

• The slowdown in new construction limits the available rental supply while demand increases.
• Foreign investment energizes certain segments of the residential market but also increases pressure on local rents.
• The housing crisis is intensifying: the average rental cost reached 440 euros per month in April 2025 for the country, with peaks in some urban areas where it exceeds €14 per m² for central Athens or even €20 per m² in certain tourist neighborhoods.

City/Area	Average Rental Price (€ / m²)	Typical Monthly Rent (€)
Athens (center)	14.2	~600
Tourist Neighborhoods	up to 20	>700
Thessaloniki	11.1	~500
Crete/Mykonos/Corfu	>10	variable

Historical Evolution & Airbnb Impact

Since around 2017–2018, we observe:

• A surge in rental prices correlated with the explosion of platforms like Airbnb, which converted many properties originally intended for long-term rental to the more profitable short-term market.
• Between 2017 and early 2023: rapid increase followed by gradual stabilization towards the end of 2024-early 2025; nevertheless, levels remain historically high as they are poorly compensated by new housing supply.

“The increase in rents is associated with increased demand and limited supply since many landlords have switched to short-term rentals via Airbnb”

Source: Bank of Greece

Comparison: Short-Term vs. Long-Term

Criterion	Short-Term Rental (Airbnb…)	Long-Term Rental
Revenue Stream	Higher but fluctuating	Stable but moderate
Occupancy Rate	Seasonal/highly variable	Regular/continuous
Tenant Turnover	Frequent (several times/month possible)	Low (annual/multi-year lease)
Management	Demanding/daily logistics	Less time-consuming

Short-term rentals often allow for a higher gross yield thanks to increased daily rates during tourist peaks; however, they involve more operational management (frequent cleaning, guest reception). Conversely, long-term rentals offer contractual security with less administrative effort but generally generate lower income on a pro-rata basis.

In summary: Rental profitability in Greece strongly depends on the type of operation chosen as well as the geographic location. While the potential remains high for those able to adapt their strategy to local dynamics — particularly in urban centers or on the highly sought-after coastline — it is also necessary to consider the evolving regulatory context, which now more strictly governs certain forms of seasonal rentals.

Comparative Analysis: Airbnb vs. Long-Term Rental

Profitability Comparison between Airbnb and Long-Term Rental in Greece

City/Destination	Potential Monthly Airbnb Income	Potential Monthly Long-Term Income	Average Airbnb Occupancy Rate (%)	High/Low Season Airbnb (%)	High/Low Season Long-Term
Athens	€1,200 – €2,000	€700 – €1,100	~65–75	~85 / ~45	Stable year-round
Thessaloniki	€800 – €1,400	€600 – €900	~60–70	~80 / ~40	Stable year-round
Mykonos	up to €4,500 (summer)	—	>80 (summer)	>95 / 80 (summer)	>90 / —

“This is an attack on small investors who put their savings into one or two apartments,” says Kostas, an owner in Thessaloniki.

Airbnb warns of the economic consequences for cities and small entrepreneurs.

For Maria, a downtown resident: “If this law is properly enforced, maybe my neighbors will come back…”

Seasonality & Economic/Tourist Variation

The profitability of the short-term model relies heavily on tourist appeal — sensitive to global economic crises or local events impacting the flow of international visitors. In the event of a sudden drop in international tourism (health/political crisis), only owners who opted for long-term rental stability will be protected against a sudden drop in income.

Comparative Summary by City/Destination

• In major Greek cities like Athens/Thessaloniki:

• The gap between short-term/long-term yield is smaller but real; increased competition over several years also leads to growing regulatory pressure.
• The occupancy rate rarely exceeds that observed in some European capitals.
• Tightened legislation now strongly limits this market.

• In the ultra-touristic Cycladic islands:
• Explosive potential for only a few months a year; fragile balance subject to global tourism fluctuations.
• Very low off-season = prolonged period with no income if switching to medium/long-term is impossible.

Decisive Factors

• The choice will mainly depend on:
• The type of property owned,
• Its precise location,
• Its level of equipment,
• And especially now… its compliance with local rules!

In the current Greek context, marked by tightening urban regulations & increasing international tourist volatility, each investor must arbitrate between maximum one-time yield… and secure stability throughout the year!

City Case Study: Seasonal Rental Yield

City	Seasonal Rental Yield (Airbnb)	Long-Term Rental Yield	Annual Occupancy Rate (Airbnb)	Seasonal Variations
Athens	6% to 8%	3% to 4.5%	70-80%	High demand from May to October
Mykonos	8% to 12%	~4.5%	Up to 90%, sharp drop off-season	Peak in summer (June-September), low rest of year
Santorini	7% to 11%	~4.2%-5%	>85%, marked decrease off-season	Very high summer season
Thessaloniki	~6%-7.5%	~3%-4.2%	Around 70-75%	More regular thanks to urban tourism

Main Differences Between Seasonal and Long-Term Rentals:

• Seasonal rental on Airbnb generally offers a higher gross yield in Greek tourist cities.
• Occupancy rates vary greatly depending on the season for islands like Mykonos and Santorini.
• In Athens and Thessaloniki, the stability of urban tourism allows for more regular occupancy.
• Long-term stays have become more popular since the pandemic; they represent up to a fifth of nights booked on Airbnb.

Local Factors Influencing the Market:

• Tourist Flow: Mykonos and Santorini rely heavily on international summer tourism. Athens attracts visitors year-round thanks to business travelers and historical heritage. Thessaloniki benefits from a mix of cultural and university tourism.
• Local Events: International festivals (film or music), conferences, or sporting events temporarily increase demand in all major cities.
• Local Regulations: Some municipalities impose restrictions on the number of rentable days for short-term rentals or require a specific permit to limit real estate pressure. This can reduce available supply but support prices for owners meeting these criteria.

Visual Summary:

mermaid graph TD A --> B A --> C D --> E E --> F G --> H

List of Financial Impacts for Owners:

• Significantly higher potential income with Airbnb in tourist areas during high season
• Increased risk of rental vacancy during low seasons on the islands
• Higher operational costs for frequent management (cleaning, concierge)
• Greater contractual flexibility with short-term rental

Key Takeaway

The choice between seasonal and long-term rental strongly depends on the local tourist profile: maximum profitability during a few key months on the islands versus less risky but less lucrative urban regularity.

This table clearly summarizes the profitability gap by city and rental type:

City	Annual Short-Term Yield (%)	Long-Term Yield (%)
Athens	6 – 8	3 – 4.5
Mykonos	8 –12	~4.5
Santorini	7 –11	~4.2–5
*Thessaloniki*	~6–7.5	~3–4.2

Annual variations remain pronounced in each island destination, while the urban market remains more stable throughout the year thanks to various sources of local economic appeal.

Important Points Highlighted

Local regulations can drastically affect expected yield; regular legal monitoring is essential before any short-term or long-term rental investment in Greece.

The tourist peak directly conditions the annual occupancy rate, especially on Mykonos/Santorini, where only optimized management can truly achieve or even double the traditional long-term yield for just a few months a year.