The European short-term rental market enters a balancing phase in early 2026, with Greece, and Athens in particular, entering an environment of changing conditions where supply is decreasing, demand is declining, and geopolitical developments in the Middle East are starting to directly affect traveler behavior.
According to AirDNA’s data for February 2026, the total supply of accommodations in Europe increased by 3.3% year-over-year, reaching 3.3 million available properties, confirming the gradual recovery of the market after the slowdown recorded in 2025. At the same time, demand fell by 4.5%, resulting in an average occupancy rate of 57%, a 3.4% drop from the previous year.
Despite the imbalance between supply and demand, prices showed resilience. The average daily rate (ADR) increased marginally by 0.4%, reaching 119.7 euros, while revenue per available room (RevPAR) fell by 3.1%, to 68 euros, limiting losses thanks to the maintenance of pricing dynamics.
In this context, Greece is experiencing the opposite trend compared to the European average, as the supply of accommodation is decreasing. Following a January drop of -6.9%, availability continued to decline in February by -6.1% year-over-year, indicating a divergence in the Greek market compared to other European destinations where supply is increasing.
This overview also applies to large urban markets, such as Athens, which is part of the broader framework of restructuring short-term rentals, with a reduction in supply and a simultaneous adaptation of professionals to the new market conditions.
At the same time, the effects of the war in the Middle East are starting to spread to the European tourism market. Data show an increase in cancellations mainly in countries of the Eastern Mediterranean and Southern Europe, with characteristic examples being Cyprus and Turkey, where significant changes in traveler behavior are recorded.
This impact is also related to the operation of the region’s major air hubs, as flight disruptions and increased uncertainty affect not only Middle Eastern destinations but also markets that serve as intermediate stops for travel to Europe.
At the booking level, overall demand remains lower, however future bookings show stabilization trends. The ratio of new bookings to nights spent was 1.09, indicating that for every 100 nights spent, 109 new bookings are made, reflecting continued interest in future travel periods.
Meanwhile, the Repeat Rent Index (RRI), which records prices for already active accommodations, increased by 10.2% year-over-year, reaching its highest level in recent months. This development suggests that established providers maintain a strong pricing position despite the decrease in demand.
At the macroeconomic level, the rise in energy prices due to the conflict is estimated to lead to a 0.5%–0.6% increase in inflation in Europe by the end of the year. Despite this increase, the European Central Bank is not expected to raise interest rates, keeping the base rate close to 2.15%
The overall picture shows a market that is transitioning to a stabilization phase, with demand shifting to the peak months of May to September, and with increased concentration of travel activity in the summer.
