Key facts
- Overtourism has significantly increased annual rents in Southern Europe since 2019.
- Greece, Spain, Portugal, and Italy are the countries studied.
- Greece saw the highest impact of overtourism on rents.
- Construction costs are not identified as the primary driver of rent surges.
- The study focuses on the period since 2019.
A recent study reveals that overtourism has led to significant annual rent increases across Southern Europe, specifically impacting Greece, Spain, Portugal, and Italy since 2019. The research highlights Greece as the country experiencing the highest degree of rent inflation attributable to tourism.
The findings challenge the notion that escalating construction costs are the main catalyst for these rent hikes. Instead, the study points to the direct influence of increased tourism activity on housing markets in these popular destinations. This phenomenon suggests that the demand generated by tourists, likely through short-term rentals and increased demand for housing in tourist-heavy areas, is a more potent driver of rising rents than the cost of building new properties.