Key facts
- Tourism flows have caused annual rents to increase by €342 in Greece since 2019.
- Spain has seen an estimated rent increase of €236, Portugal €220, and Italy €202 due to tourism.
- Ireland is projected to experience the largest absolute annual rent increase (€251) over the next five years.
- Construction prices, despite rising significantly across the EU, do not appear to be the primary driver of rent inflation in high-tourism countries.
Overtourism is significantly impacting the cost of living in popular European destinations, particularly driving up rental prices, according to a new study. While tourism injects millions into economies, residents in countries like Greece, Spain, Portugal, and Italy are facing substantial annual rent increases directly linked to increased tourist flows. Greece has seen the highest impact, with rents rising by an estimated €342 per year since 2019, followed by Spain (€236), Portugal (€220), and Italy (€202). Ireland is projected to face the largest absolute increase in the coming years, with rents expected to climb by an additional €251 annually, exacerbated by planned airport expansion. Researchers found that rising construction costs, which have increased by 45% across the EU in the last decade, are not the primary cause of these rent hikes in tourism-heavy regions. Instead, the study suggests that the surge in rents is largely sparked by the significant influx of tourists, highlighting a direct economic disadvantage for non-tourism-related residents.