The European short-term rental market (STR) remains one of the most dynamic segments of the travel and tourism economy in 2026, according to an analysis by ClubProperty.com, a global commission-free real estate platform designed to connect properties, professionals, and capital.
Although there are no official country-by-country revenue forecasts for 2026 yet, available data, demand trends, and the evolving regulatory environment clearly outline the “winners” and “losers” of the coming year.
The overall picture of the European STR market
The European short-term rental market is estimated to have reached approximately USD 48.1 billion in 2025, recording an average annual growth rate of nearly 11.5% over the past decade. This growth has been driven by the digitalization of bookings, increased travel flexibility, and the strong post-pandemic recovery of tourism.
Looking ahead to 2026, the market is expected to continue growing, albeit with significant differences across countries, largely due to divergent regulatory policies and local supply-and-demand dynamics.
Europe’s leading STR markets in 2026
France
France remains one of the largest short-term rental markets in Europe, with more than one million active listings. The country’s strong tourism performance in 2025, across both urban and leisure destinations, supports expectations that France will generate the highest STR revenues in Europe in 2026. Paris, the French Riviera, and major leisure destinations are expected to remain key revenue drivers.
Spain
Spain continues to rank among the top destinations for European travelers. However, strict regulations in hotspots such as Barcelona and Ibiza have already significantly reduced supply. In 2026, revenues are expected to shift toward less regulated coastal areas and secondary cities, limiting growth in traditionally strong markets.
Italy
Italy has maintained tax incentives for short-term rentals in its 2026 budget, supporting host profitability. With indicative revenues exceeding €8.2 billion in the first eight months of 2025, the market appears resilient, with strong performance in Rome, Tuscany, and the Amalfi Coast.
Germany
Germany’s STR market is supported by strong domestic demand and major urban centers such as Berlin, Munich, and Hamburg. Despite tighter regulations in some cities, total revenues are expected to remain stable or slightly increase, with higher revenue per night driven by constrained supply.
United Kingdom
The United Kingdom, led by London and Edinburgh, continues to hold a strong position in the European STR market. While specific figures for 2026 are not yet available, the country’s mature tourism ecosystem points to steady revenue growth.
Greece and emerging markets
Greece is among the markets with moderate to high revenue growth potential in 2026, supported by strong seasonal demand in the islands and Athens. Regulatory interventions, including operational limits and safety requirements, are primarily aimed at sustainability rather than revenue suppression.
At the same time, countries such as Portugal, Croatia, Malta, and Cyprus are showing increased momentum, while Central European markets (Poland, Czech Republic, Slovakia) are gradually strengthening through urban and cultural tourism.
Key factors shaping 2026
Regulatory framework: New EU-wide transparency and data-reporting requirements from 2026 may influence host behavior and market structure.
Limited supply: In many major cities, slower growth in new listings is pushing up revenue per night.
Pricing and seasonality: Average daily rates remain significantly above pre-pandemic levels, supporting total revenues even without supply expansion.
In 2026, Europe’s short-term rental market will not move in a uniform direction. France, Spain, Italy, Germany, and the United Kingdom are expected to capture the largest share of revenues, while Southern and Central Europe continue to offer meaningful growth opportunities, particularly in leisure destinations with lighter regulation.
Key takeaways from STR revenue projections for 2026
High revenue concentration in major markets
France, Italy, and Spain continue to dominate the European short-term rental landscape. Even under a conservative (low) scenario, these three countries capture the largest share of total STR revenues in the EU, confirming that mature markets remain the backbone of the sector.
France remains the undisputed leader
With estimated revenues ranging from €6.8 billion to nearly €9.7 billion in 2026, France maintains a clear lead, leveraging both urban and leisure demand despite strict regulations in certain cities.
Italy and Spain on growth paths, with different risks
Italy shows strong and relatively balanced growth, supported by tax incentives and stable demand. Spain, by contrast, faces higher regulatory risk, particularly in top leisure destinations, making the “low” scenario more realistic for specific regions.
Greece approaches the €1 billion club
Greece’s STR market is estimated to range between €730 million and €1.09 billion in 2026, with the base scenario placing it close to the €1 billion threshold. Strong island demand and pronounced seasonality continue to underpin upside potential.
Mid-sized markets with steady growth
Portugal, Croatia, and Austria are all recording clear revenue growth in 2026, driven primarily by demand in leisure and regional destinations, despite targeted interventions in major cities.
Wider gaps between “low” and “high” scenarios in fast-growing markets
Countries such as Poland, Belgium, Croatia, and Greece show the largest divergence between base and optimistic scenarios. This suggests that the final outcome for 2026 will depend heavily on regulation, pricing power, and the length of the tourist season.
Stagnation in mature but tightly regulated markets
Markets such as the Netherlands, Ireland, the Czech Republic, and Hungary show limited growth potential, with revenues expected to remain largely flat through 2026, reflecting the constraints imposed by local regulations.
Want to see how Greece’s short-term rental market compares with competing Mediterranean destinations?
Secure your seat now at the Short Stay Athens Conference 2026.
