The housing in Europe is becoming increasingly expensive and for many residents it has turned from basic need to luxury. Behind this pressure on rents lies a mixture of factors, with tourism playing an increasingly decisive role in several Southern countries.
Greeks, Italians and Spaniards have suffered some of the biggest rent increases since 2019, ranging from 200 to 300 euros a year, and not, this has nothing to do with energy or construction prices.
Europe is the largest region in the world in tourism, attracting over half of international tourist arrivals.
The tourism industry flows millions of euros annually into the economy, but for those who do not work in the industry, the disadvantages can be enormous.
Not only in terms of crowding and pollution, but also more specifically in the way it increases the cost of living, especially rents.
In Greece tourist flows have increased rents by 342 euros since 2019
The inhabitants of Greece are the most affected, according to the New Economics Foundation, with the tourist flows increasing annual rents by 342 euros as of 2019.
Annual rent price difference 2019–2025 compared to tourism volumes
The study combined rental growth data from Eurostat with air passenger volumes and current rent prices.
Greece is one of the countries where protests against overtourism have recently taken place, as in the Netherlands, Italy and Spain.
Spain ranks second, with an estimated increase of EUR 236, followed by Portugal with EUR 220 and Italy with EUR 202.
Compared to Greece, researchers say that broad rent control policies in Spain partially reduced rent inflation, while large housing supply in Italy reduced pressure.
At the same time, Ireland emerges as the country with the largest rent increase in absolute terms over the next five years, with an additional EUR 251 per year.
The study adds that the current plans to expand Dublin Airport will likely worsen Ireland's pressured consumer market.
In general, rents in all countries examined are expected to increase due to tourism.
Estimated annual rent increase due to tourism (2026 vs 2031)
Some may consider that higher rental prices are due to increased construction costs — increased by 45% over the last decade at EU level.
In fact, if we look at countries with high tourist flows, construction prices and increased rents due to tourism do not appear to be linked.
Italy, Spain and Greece have only recorded small increases in construction costs in recent years, according to Eurostat, suggesting that the rise in rents can actually be caused by something else, with tourism being one of the main suspects.
