This is most evident in Greece. According to estimates by the New Economics Foundation (NEF), tourism has increased the average cost of rent in the country by 342 euros per year since 2019. Analysts compared Eurostat data on rent increases with passenger traffic statistics and found a correlation between the rise in tourist numbers and rising housing prices.
Spain came in second, with rents rising by 236 euros per year. Portugal (+220 euros) and Italy (+202 euros) followed. However, it is noted that in Spain, price increases are partially curbed by rental market regulations, while in Italy, the pressure is eased by a wider supply of housing, according to Euronews.
According to NEF’s forecast, the next country where the problem will become even more acute is Ireland. Over the next five years, rents there could rise by another 251 euros per year. Plans to expand Dublin Airport could further boost tourist traffic and increase pressure on the housing market.
At first glance, the rise in rents can be attributed to higher construction costs. Over the past decade, construction costs in the European Union have risen by about 45%, according to Eurostat data. But statistics show that this explanation is insufficient.
In Italy, Spain, and Greece—where rents have risen particularly rapidly—construction costs have barely increased in recent years. This suggests that other factors are playing a major role. One of them is short-term rentals for tourists. The more apartments shift from the long-term market to daily rentals, the fewer housing options remain for local residents. As a result, supply shrinks, and prices continue to rise.
It’s worth noting that Europe remains the world’s most visited tourist region, hosting more than half of all international tourists. But along with revenue, tourism also brings new problems. In recent years, protests against overtourism have taken place in Spain, Greece, Italy, the Netherlands, and other countries. For many residents, the issue is no longer about crowded streets, but whether they will be able to afford housing in their own city.
Follow our updates
