When investing in the Greek rental market in 2026, the choice between short-term (STR) and long-term (LTR) rentals is no longer just about "maximum profit." New government regulations and shifting traveler habits have created a more nuanced landscape.
Below is a clear breakdown of which rental strategy may best suit your investment goals in the current Greek market.
1. Short-Term Rentals (Airbnb/Booking)
This model remains the king of "gross revenue," but it has become more complex and regulated.
Revenue Profile
- High nightly rates during peak seasons
- Strong performance in established tourist hotspots
- Income fluctuates significantly throughout the year
Cost Structure
- Professional management fees typically range from 15%–25%
- Additional expenses include: cleaning and laundry, utilities and internet, maintenance and guest turnover costs
As a result, net returns are often significantly lower than gross figures.
- Registration Freezes: In many urban centers, like Athens (specific districts), the government has extended a ban on new short-term rental licenses through the end of 2026.
- Stricter Standards: All STR properties must now have civil liability insurance and meet specific safety criteria (smoke detectors, fire extinguishers).
- Climate Tax: Guests now pay a daily "Climate Crisis Resilience Fee" (€1.50 to €10), which can influence booking decisions for budget travelers.
2. Long-Term Rentals (Residential)
Once considered the “safe but boring” option, long-term rentals are now seeing record growth due to a severe housing shortage in major cities.
Yield Expectations: Gross yields average 4.5%–6%. While the monthly income is lower, the "net" is often similar to short-term rentals because costs (maintenance, marketing, utilities) are paid by the tenant.
- High Demand: Rents in Athens and Thessaloniki have risen by over 50% in the last 5 years. Vacancy rates for well-priced urban apartments are near zero.
- Stable Income: You avoid the "dead" winter months that plague island properties.
3. The "Mid-Term" Hybrid (The New 2026 Trend)
A new category has emerged: renting to Digital Nomads and remote workers for 1 to 6 months.
- Best of both worlds: Higher monthly rates than long-term, but without the daily turnover of Airbnb.
- Target Areas: Coastal towns with year-round appeal and urban-adjacent lifestyle locations. Parts of Crete and the Athens Riviera are strong performers.
Strategy Comparison Table
| Feature | Short-Term (Airbnb) | Long-Term (Residential) |
|---|---|---|
| Management Effort | High (Constant communication) | Low (Once or twice a year) |
| Income Stability | Volatile (Seasonal) | Very Stable |
| Operational Costs | High (20% - 30% of revenue) | Low (Owner pays only property tax) |
| Regulation Risk | High (New bans/fines) | Low (Standard tenant laws) |
Which Rental Strategy Is Right for You?
There is no single “best” option—only the one that aligns with your priorities:
- Choose short-term rentals if you are comfortable with active management and seasonal variability.
- Choose long-term rentals if you value stability, simplicity, and passive income.
- Consider mid-term rentals if you want flexibility and a balance between yield and effort.
Final Thoughts: Invest with Clarity and Structure
The Greek rental market continues to offer attractive opportunities—but success depends on choosing the right strategy for your investment profile.
If you would like guidance on rental strategy selection, expected returns, or regulatory considerations, our team is here to help. We work with investors to identify properties and rental models that align with both market conditions and long-term goals.
