Long-Term vs Short-Term Rentals: Why Investors Are Shifting Strategy

What short-term and long-term letting actually leave you with in 2026, once the costs are counted.

For years, short-term rentals (Airbnb) were the undisputed king of real estate yields in Greece. However, in 2026, a significant portion of investors and property funds are aggressively shifting their portfolios toward long-term leases. Here is why.

1. The True Cost of Short-Term Rentals While the gross income of an Airbnb might look spectacular, what is left after costs tells a different story. In 2026, operating a short-term rental involves: * High management fees (typically 20-25%). * Soaring utility and maintenance costs. * The new Climate Resilience Tax. * Wear and tear on the property.

Once these expenses are deducted, a headline gross figure can easily halve by the time it reaches the owner. The only number worth planning around is the one calculated for the specific property.

2. The Golden Age of Long-Term Rentals Greece is currently facing a severe shortage of high-quality residential housing. This has driven long-term rental prices to historic highs. * Steadier income: A long-term lease gives predictable rent, without the seasonal swings of tourism. * Zero Management Hassle: Once the tenant is in, operational costs and management efforts drop to near zero. * Golden Visa Compliance: As of 2026, properties purchased for the Golden Visa must be rented long-term (or used personally), making long-term leasing the only legal option for these investors.

3. The Hybrid Approach Many savvy investors are now adopting a hybrid model. They purchase properties in coastal or island areas (like Syros or Halkidiki) for seasonal short-term rentals, while keeping their urban portfolios (Athens, Thessaloniki) strictly on long-term leases to keep a stable baseline income.

Whether you choose short-term or long-term, Aegean Estate Property Management offers property management tailored to the property and to the way you want to use it.