Short-Term Holiday Rental Revenues in Europe 2026. What to Expect by Country

The European short-term rental (STR) market remains one of the most dynamic segments of the travel and tourism economy heading into 2026. While precise country-by-country revenue forecasts for 2026 are limited in public datasets, several industry trends and market structures provide valuable guidance on how revenues are shaping up across major European destinations.

Overall Market Outlook for Europe

Europe’s short-term rental sector has experienced strong growth over the last decade, driven by digital booking platforms, flexible travel preferences, and post-pandemic tourism recovery. The region’s STR market was projected at roughly USD 48.1 billion in 2025, with a robust compound annual growth rate of ~11.5% through the next decade.

With ongoing tourism demand, this pattern suggests continued revenue expansion in 2026, though growth will vary significantly by country due to differing regulatory environments and local demand.

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Leading European Markets by Expected 2026 STR Revenue

🇫🇷 France

• Market position: One of Europe’s largest short-term rental economies, driven by both urban and leisure tourism.

• Trends: France saw strong overall tourism performance in 2025 with rising overnight stays across hotels and alternative accommodations, indicating higher rental revenue streams likely extending into 2026.

• Outlook: With a broad STR base exceeding a million listings and increasing demand, France is poised to generate among the highest STR revenues in Europe in 2026 — particularly around Paris, the Côte d’Azur, and major leisure hubs.

🇪🇸 Spain

• Dynamics: Spain remains a top destination for European travelers, though regulatory crackdowns have impacted some markets like Ibiza, where short-term rental supply halved in 2025.

• Implication: While overall tourism is strong, targeted regulation in hotspots could temper revenue growth in 2026, shifting income toward less regulated coastal and secondary cities.

🇮🇹 Italy

• Regulatory backdrop: Italy preserved a tax break for short-term rentals in its 2026 budget after industry pushback, which supports continued investment and host profitability.

• Revenue snapshot: Italian STR bookings were estimated at over €8.2 billion in the first eight months of a recent year (indicative of strong base volumes). While tax proposals could alter future profit structures, the market remains resilient.

🇩🇪 Germany

• Market context: Germany’s STR industry benefits from a strong domestic travel culture and urban demand in cities like Berlin, Munich, and Hamburg. Local regulation is tightening — for example, Hamburg’s stricter enforcement — but overall demand remains solid.

• Revenue potential: Germany is part of the top five European markets, historically contributing significantly to continental STR revenues.

🇬🇧 United Kingdom

• STR performance: The UK remains a top destination for European and global travelers, with strong short-stay bookings in London, Edinburgh, and coastal regions.

• 2026 outlook: While specific revenue figures are not publicly available yet, the UK’s established tourism ecosystem suggests steady STR revenue growth heading into 2026.

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Emerging and Secondary European Markets

Countries like Portugal, Greece, the Netherlands, Croatia, and Switzerland form part of Europe’s broader STR revenue base, collectively accounting for close to 90% of total regional revenue when paired with the top five markets.

These markets often benefit from seasonal tourism surges, comparatively lower rents, and increasing digital platform penetration — factors that are likely to boost revenue performance in 2026.

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Regulatory and Market Forces Shaping Revenue in 2026

EU-wide Transparency and Regulation

New EU data reporting and transparency requirements are rolling out around May 2026, affecting how short-term rentals are monitored and potentially altering host behavior across countries.

Supply and Demand Dynamics

Across Europe, supply growth has slowed in highly regulated urban centers but continues in leisure destinations — suggesting higher revenue per available stay in areas with constrained supply and strong demand.

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What This Means for Hosts and Investors in 2026

Revenue potential in Europe’s short-term rental market in 2026 will be influenced by:

• Local tourism demand and travel recovery post-pandemic

• Regulatory frameworks at city and national levels

• Supply constraints in major cities

• Platform penetration and adoption of dynamic pricing

Top-earning countries expected in 2026 include France, Spain, Italy, Germany, and the UK, with strong secondary growth in Southern and Central European leisure markets.

Short-Term Rental Revenues by EU Country — 2026 Outlook

🇫🇷 France

• One of Europe’s largest STR markets with high international demand — Paris and coastal resort areas remain key revenue drivers.

• Tourism spending continues to grow, boosting short-term rental revenues in urban and leisure destinations (record overnight stays and spending).

🇪🇸 Spain

• Strong overall tourism demand, though strict rentals regulations in key hotspots (Ibiza, Barcelona) are changing supply dynamics.

• Revenue will likely shift toward less regulated coastal and secondary cities with strong seasonal demand.

🇮🇹 Italy

• Italy’s STR bookings indicate strong performance, especially in popular cities and regions like Rome, Tuscany, and the Amalfi Coast.

• Maintained tax incentives support host profitability, contributing to sustained revenue growth.

🇩🇪 Germany

• Large domestic travel base and streaming tourist nights across cities like Berlin and Munich support stable STR income.

• Regulatory limits in some cities may constrain excess supply but help stabilize pricing earned per stay.

🇬🇷 Greece

• Greece shows notable STR demand, with hotspots like the islands and Athens generating high guest nights.

• Some regulatory shifts (e.g., moratoria and safety standards) aim for sustainable tourism without significantly dampening overall revenue potential.

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Additional EU Countries with 2026 STR Revenue Potential

🇵🇹 Portugal

• Strong tourism growth drives STR demand (Lisbon, Porto, Algarve). Continued housing market adjustments and government housing initiatives may influence supply but tourist interest remains high.

🇭🇷 Croatia

• A rapidly growing Mediterranean destination. Significant seasonal booking activity suggests substantial short-term rental income, particularly along the Adriatic coast.

🇲🇹 Malta

• Malta shows strong growth in guest nights and revenue velocity, often outpacing larger markets in year-on-year percentage increases.

🇨🇾 Cyprus

• Emerging as both a summer and shoulder-season destination, Cyprus sees growing STR bookings with potential for increased 2026 revenue.

🇸🇰 Slovakia

• Emerging growth in listings and guest nights indicates rising STR potential, especially in Bratislava and mountain resort regions.

🇵🇱 Poland

• Steady growth in cities like Kraków and Warsaw — STR demand driven by urban tourism and cultural travel.

🇳🇱 Netherlands

• Amsterdam and coastal provinces remain strong revenue generators, though tight regulations can cap supply and lift average pricing.

🇧🇪 Belgium

• Brussels and Bruges attract consistent tourism; STR revenue growth is moderate but stable.

🇭🇺 Hungary

• Budapest drove growth historically (one of Central Europe’s highest guest-night figures), though local bans (in districts) may temper average revenue.

🇸🇮 Slovenia

• Rising popularity among outdoor and nature travelers fuels STR engagement in lakeside and alpine regions.

🇨🇿 Czechia

• Prague remains a key draw for European travelers, especially in mid-year seasons.

🇮🇪 Ireland

• Short-term rentals concentrated in Dublin and coastal towns offer decent revenue streams due to strong inbound tourism.

🇦🇹 Austria

• Vienna and Alpine resort towns continue to attract leisure and business travelers year-round.

 

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Key 2026 Drivers for STR Revenues

1. Tourism Demand Trends

Europe welcomed hundreds of millions of short-term rental guest nights as STR giants and OTAs expanded visibility of even smaller markets.

2. Supply & Regulation

Listings growth has slowed in some regulated markets while smaller or emerging destinations — Malta, Slovakia, Cyprus — expand supply faster.

3. Pricing & Seasonality

Average daily rates (ADRs) have risen significantly compared to pre-pandemic levels in many markets, fueling higher revenue even when listing growth slows.

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Summary: 2026 STR Revenue Potential in Europe

 

 

Below are numeric 2026 revenue estimates (EUR) for short-term holiday rentals for the EU countries we listed (plus a clear method so you can cite it in an SEO article).

What these numbers are (so you can explain them)

• Baseline data: gross STR host revenue (ex-tax) by country for 2019 and 2023 from Horwath HTL / AllTheRooms.

• Projection method: compute each country’s 2019→2023 CAGR and extend it 3 more years to 2026.

• Ranges:

  • Low = 50% of that historical growth rate (regulation / supply constraints scenario)

  • Base = same growth rate continues

  • High = 125% of that historical growth rate (strong demand + pricing power scenario)

Also note: Europe’s STR market has been seeing tightening rules and slower supply growth, which is exactly why the Low/Base/High range is useful rather than a single point estimate.

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2026 projected STR gross revenues by country (EUR billions)

 

 

• Revenue concentration stays high: France, Italy, Spain dominate the EU revenue pool (and historically the top markets take the lion’s share).

• Regulation risk is most “real” in top leisure hotspots (Spain is the clearest headline example right now), which supports using the Low scenario for tightly regulated regions.

• Where upside is biggest (High vs Base): markets that grew fast from 2019→2023 (e.g., Poland, Belgium, Croatia, Greece) have larger spread in 2026 outcomes.