ICAP: Changes Expected in Greek Short-term Rental Market

Photo source: Airbnb

The short-term rental market in Greece is in transition, with continuous and successive developments rapidly changing the relevant business activity, a study recently released by business services group ICAP said.

According to the study, income from short-term rentals is expected to show small annual changes over the next three years (2019-2021).

ICAP underlines that the mandatory registration of properties leased for the short term and the taxation of income from the specific activity, is expected to play a decisive role.

The absence of a fiscal framework in previous years, combined with the difficult economic situation in Greece, saw a widening supply of short-term leasing services, resulting in a drastic increase in the number of registered accommodation available by property owners, sharing platforms and management companies.

ICAP reveals that an average annual growth rate of 9 percent was recorded in revenue from the short-term rental market during the 2015-2018 period.

The study also underlines that the global trend to strengthen the sharing economies, particularly in the accommodation sector, has radically changed the domestic short-term rental market, as on the one hand it boosted the local economy and on the other, it put pressure on the hotel industry (mainly small- and medium-sized hotels).

According to Markos Kontoes, Senior Consultant of ICAP’s Directorate of Economic Studies, the sharing economies developed over the last decade have led to new forms of entrepreneurship, especially in the field of accommodation. The short-term rental of rooms, apartments and office spaces through online platforms such as Airbnb has evolved into a lucrative and fast-growing business in Greece and is believed to have transformed the domestic real estate industry.

ICAP notes that industry stakeholders consider that revising the legal and fiscal framework is significant to ensure the sustainability of the short-term lease potential without affecting other key sectors of the Greek economy.