Greece Records Europe’s Largest Tourism-Linked Rent Increase, Study Finds

Greece has experienced Europe’s largest tourism-linked increase in annual rents since 2019, with an estimated rise of 342 euros, according to a new study by the New Economics Foundation (NEF), an independent UK think tank.

Examining the relationship between tourism growth and housing costs across Europe, the study estimates that Greece has been the most affected among the countries examined.

To reach its findings, the researchers combined Eurostat rental data with airport passenger volumes and current rental prices, highlighting the growing pressure that tourism can place on housing markets alongside its economic benefits.

Greece tops European ranking

According to the study, Greece recorded the highest estimated tourism-linked increase in annual rents since 2019 at 342 euros, followed by Spain (236 euros), Portugal (220 euros) and Italy (202 euros). The researchers note that Spain’s rent control policies appear to have helped moderate rental inflation, while Italy’s larger housing supply may have eased some of the pressure.

Table 1 – Estimated annual increase in rents attributed to tourism since 2019 across selected European countries. According to the New Economics Foundation, Greece recorded the largest tourism-linked increase at 342 euros per year, followed by Spain, Portugal and Italy, while several northern European countries showed limited or negative estimated effects.

The report also found that tourism’s estimated impact on rents was considerably lower in several northern European countries, with Denmark, Germany and Belgium recording little or even negative estimated effects over the same period (see Table 1).

The findings add to ongoing discussions across Europe about how destinations can balance tourism growth with housing affordability, particularly as concerns over overtourism continue to emerge in some of the continent’s most popular destinations.

Ireland forecast to see biggest future increase

Looking ahead, the study estimates Ireland will experience the largest additional tourism-linked increase in annual rents over the next five years, at 251 euros. Spain (217 euros), Portugal (193 euros), Greece (163 euros) and Italy (132 euros) are also projected to see further increases (see Table 2).

Table 2 – Projected additional annual increase in rents attributed to tourism between 2026 and 2031. The New Economics Foundation estimates Ireland will experience the largest rise over the next five years, followed by Spain, Portugal, Greece and Italy, as tourism continues to put pressure on housing markets.

According to the report, Ireland’s planned expansion of Dublin Airport could place additional pressure on an already strained housing market by supporting further growth in visitor numbers.

Overall, the researchers estimate that tourism will continue to contribute to rent increases across the countries examined, although the scale of the impact is expected to vary depending on local housing conditions and policy measures.

Construction costs don’t tell the whole story

The study also challenges the assumption that rising rents are primarily the result of higher construction costs. Although construction costs across the European Union have increased by around 45 percent over the past decade, researchers found no clear relationship between construction cost inflation and tourism-linked rent increases in countries with strong visitor demand.

According to the report, Greece, Spain and Italy have recorded relatively modest increases in construction costs in recent years, suggesting that other factors—including tourism—have played a significant role in driving rental growth.

Founded in 1986, the New Economics Foundation (NEF) is an independent UK think tank that conducts research on economic, social and environmental issues, with a focus on developing policies aimed at improving wellbeing, reducing inequality and supporting a more sustainable economy.

Cre: Greek Travel Pages