The short-term rental market in Europe continues to attract travellers worldwide, with Airbnb serving as a key pillar of the hospitality experience, followed by other platforms such as Booking and Expedia (VRBO). However, each country approaches short-term rentals with different regulations, due to the specific needs of the local community and issues related to over-tourism and problems with the availability of properties through long-term leasing that each face. With new measures being announced periodically by the governments of each country, the short-term rental market is constantly evolving, causing property owners a persistent sense of insecurity and professional managers a constant headache, as they are required to stay continuously updated on anything affecting the market.
What Applies to Airbnb Accommodations in Europe
The tourism economy owes a significant portion of its revenue to short-term rentals and the platforms through which accommodations are made available. Europe has long been one of the most popular destinations for travellers from around the globe, offering a wide variety of Airbnb accommodations, from small apartments in historic city centres to luxurious villas near famous resorts and beaches. The most popular European countries for short-term rental stays are France, Spain, Italy, and Portugal.
- France has over 500,000 listings on short-term rental platforms and is one of the largest Airbnb markets globally. Despite its great popularity, many cities, such as Paris, have imposed strict regulations to protect the local community (you can read more about the latest measures announced for short-term rentals in Paris and other cities here).
- In Barcelona, the issuance of new short-term rental licences has been banned, and restrictions have been placed on existing ones. Nevertheless, Spain remains an attractive destination with many options for short-term rental properties.
- Properties listed on Airbnb are a key component of the tourism economy in cities such as Rome and Florence, with listings ranging from small studios to luxurious apartments. However, restrictions are beginning to be considered in historic areas of Italy.
- Lisbon is one of the most popular destinations for digital nomads (you can read more about digital nomads here). However, residents of Lisbon have gathered signatures to hold a referendum to cancel all short-term rental properties, which amount to approximately 20,000 accommodations.
Statistical Data for Airbnb in Europe
According to data from Eurostat, between April and June 2024, there were over 208 million bookings for overnight stays within the EU through Airbnb and other short-term rental platforms, representing an increase of 16.2% compared to the same quarter of the previous year. This increase adds to the already significant growth rates recorded in previous years: the number of overnight stays for the same period last year (April-June 2023) exceeded the corresponding figure for 2022, prior to the Covid-19 pandemic.
For the second quarter of 2024, the highest growth rates in the EU were recorded in Malta, with an increase of 40.6%, Slovakia with an increase of 25.4%, and Sweden with an increase of 23.6%. France, Spain, and Italy, which, as noted earlier, are the most popular destination countries, recorded growth rates of 13.4%, 19.0%, and 17.3% respectively in the second quarter of 2024. In the first quarter of 2024, growth rates among EU member states ranged from 16.5% in Austria to 49.6% in Malta, with an overall growth of 28.3% across the European Union. Immediately prior to this, in the fourth quarter of 2023 (October-December), the average growth rate for the EU was 22.7%, while in the third quarter of 2023 (July-September), the average growth rate for the European Union was 13.8% (source: Eurostat).
Airbnb and the Tourism Economy
As indicated by the statistics above, the tourism economy of the EU countries is inextricably linked to bookings made through short-term rentals. In the capitals and major cities of EU countries, properties available via Airbnb, Booking, etc., number in the tens of thousands, translating into significant revenue for each country’s economy, while in smaller towns and villages across Europe, Airbnb listings show a steady annual increase of 10-15%. And, as we all know, a picture is worth a thousand words; below is a chart examining the eight most popular destination countries in the EU (France, Spain, Italy, Germany, Portugal, Greece, Poland, and Croatia) for the second quarter from 2018 to 2024. As is evident, overnight stays made through short-term rental platforms have increased compared to not only 2023 but also pre-pandemic figures.
This indicates that short-term rentals play a crucial role in the economy of each country and should not be demonised or used as an excuse for increasing rents, for example. Regulations are becoming increasingly strict, and requirements for property owners are rising; however, travellers will always seek flexible and authentic accommodation experiences. Developments in short-term rentals will continue to be a topic of discussion and adjustment, aiming to find solutions that serve the interests of all, both within and outside Europe.
