How the European short-term rental market is evolving
The short-term rental market in the European Union has shown strong growth in 2024. This analysis is based on data from leading booking platforms, including Airbnb and TripAdvisor. During the reporting period, users rented private properties (excluding hotels) for more than 854 million nights.
According to the study, a notable increase in demand was recorded in southern Europe. This can be attributed to the picturesque terrain and mild climate, which have traditionally attracted tourists. The regions with the largest number of bookings are:
– Adriatic coast in Croatia – more than 25 million nights registered;
– Andalusia region in Spain – about 17 million nights;
– Côte d’Azur, Provence and ski resorts in France – almost 16 million nights.
Market performance has surpassed the 2019 pre-pandemic level, indicating recovery and further growth for the sector.
Overview of trends by country
Spain took the leading position, achieving a rental volume of 190 million nights. Demand came from both international tourists and domestic travellers. France came second, with the highest activity in Paris and the southern regions of the country. It was followed by Italy, where southern regions were popular.
In Germany, the market relied predominantly on domestic tourism. The short-term rental markets in Portugal and Greece also performed well. This was due to the attractive conditions of the Golden Visa programmes. In the Netherlands, demand for properties in Amsterdam increased. At the same time, local housing remained in demand despite the limited supply.
In Switzerland, demand increased by 12%. The sector is characterised by strict regulatory conditions. Renting without official authorisation is only permitted for 90 days a year. Similar rules apply in Norway, yet the markets in Oslo and Bergen still showed growth.
The UK’s primary markets are London, Edinburgh and Manchester.
Short-term rental market restrictions
Several European countries are tightening rules to regulate the sector. Among them:
1. Spain: In Barcelona, for example, the authorities intend to prohibit the rental of residential properties by 2028. Restrictions are also in place in Madrid, the Balearic Islands and Valencia.
2. France: In Paris, private property rentals are limited to 120 days per year.
3. Germany. In Berlin, you must obtain a permit from the municipality to rent out accommodation.
4. Portugal: Lisbon and Porto have suspended issuing new licences for short-term rentals.
Even with increased regulation, the market continues to grow. Landlords are adapting their approaches in an effort to comply with the new requirements and maintain the legal status of their operations.