Serviced apartments: A new hospitality market in Athens’ southern suburbs, between Airbnb and 5-star hotels

A new, well-structured hospitality segment is rapidly emerging in Athens’ Southern Suburbs, filling a clear gap between ultra-expensive luxury hotels and the often loosely regulated world of Airbnb.

Κωνσταντίνος Κιολέογλου Avakon — Kostantinos Kioleoglou, Managing Partner – Avakon

As Konstantinos Kioleoglou, Managing Partner at Avakon, explains to BnBnews, the trend currently taking shape is clear and primarily αφορά serviced apartments — furnished apartments owned and professionally managed by companies, operating under unified quality standards and with a clearly defined tourism orientation.

“We are not talking about cases like Blueground, but about an entire market built around the professional management of furnished apartments,” he notes. The foundations of this development were laid between 2021 and 2022, when large volumes of older properties were acquired at relatively low prices and renovation costs remained manageable. This “window of opportunity” led to the creation of a significant number of serviced apartments, which are now in high demand, including from international markets.

It is no coincidence that many of these units are now connected with travel agencies, further strengthening demand.

Who chooses serviced apartments— and why

The typical guest profile is often family-oriented. These are primarily international visitors who prefer staying in a fully equipped apartment rather than a hotel. The reason is straightforward: in the Southern Suburbs — especially along the coastal stretch from Glyfada to Varkiza — options for high-quality accommodation remain limited.

At the very top end of the market, there are only a handful of exceptionally expensive hotels, such as Four Seasons, Divani, The Margi and, more recently, One&Only. Beyond these, there are roughly six or seven four- and three-star hotels, followed by suite-style properties and various newer concepts that have emerged in recent years. At the same time, Airbnb listings have multiplied, often without consistent quality standards or professional management.

Pricing, demand and the “top shelf” of the market

Prices at the top end of the market are prohibitive for the vast majority of travelers. Four Seasons and One&Only start at around €2,000 per night, while Divani and The Margi are closer to €1,000. And yet, according to Kioleoglou, these hotels are fully booked, with availability hard to find.

This clearly demonstrates that demand exists and that the market is moving dynamically — even at price levels that would typically be considered out of reach.

In this environment, serviced apartments function as the “middle-ground solution.” They are significantly more affordable than five-star hotels, while offering a far more organized and reliable alternative to traditional Airbnb listings. As he points out, it is a positive development that this market is now operating within a clearer economic and regulatory framework. Over time, this will help operators manage their assets more effectively and maintain properties at a consistently high standard.

Why professional apartment management changes the game

Once a professional operator is involved, maintenance can no longer be handled casually. There is a clear incentive to preserve the property at a defined quality level. In addition, platform-based reviews and ratings act as an indirect control mechanism, applying constant pressure to maintain standards.

Where growth is concentrated

According to Kioleoglou, Vouliagmeni and Varkiza benefit from a significantly larger and more organized coastal frontage relative to their size. In these areas, visitors feel continuously connected to the sea, with easy access to beaches and coves — a key factor for attracting higher-income travelers.

By contrast, Glyfada’s coastal frontage is limited and, at least qualitatively, less attractive. Relative to the size of the area, its seaside presence is minimal.

Based on these characteristics, he estimates that the stretch from Voula toward Kavouri, Varkiza and the surrounding areas currently represents one of the most attractive zones in Athens’ Southern Suburbs.