The European short-term rental market set a new record in June 2025, according to AirDNA data. However, growth is not uniform across the continent: while emerging destinations in Eastern and Northern Europe are showing impressive momentum, traditionally strong markets such as Italy, Spain, France and the UK are slowing down due to ongoing regulatory rules.
Historic high in supply – but with a brake on the “big guys”
According to AirDNA, available listings across Europe reached 4.05 million in June, the highest in the market’s history. However, annual growth was limited to 5.3%, significantly lower than the double-digit rates of recent years.
The “slowdown” is mainly due to the continent’s four largest markets – the UK, France, Italy, France and Spain – which together account for 60% of all listings. Growth in these countries was sluggish: Italy just 0.7%, Spain 3.9%, the UK 4.1% and France 6.1%, when the other European countries recorded average growth of 11%.
This slowdown is directly linked to the wave of regulatory measures imposed in many cities in response to concerns about overcrowding and housing accessibility. Notable examples include restrictions on rental days in cities such as Lyon, Turin and Marseille, and moratoriums on new permits in popular seaside destinations in Spain.
Demand is “migrating” to the East and the North
At the same time, the less prominent destinations in Eastern and Northern Europe are experiencing rapid growth, indicating a shift of travellers towards alternative, less saturated and more economical regions.
Countries such as Poland, the Czech Republic and Croatia have seen impressive growth in demand. In Croatia in particular, supply fell by 0.8%, but demand increased by 11.7%, leading to an increase in occupancy of 10.6%. Similarly, Poland and the Czech Republic saw demand soar by more than 15%.
Also notable is the case of Norway, which recorded a 27% increase in demand, Lithuania and Estonia with increases of between 20-30% for August bookings. In contrast, traditionally strong southern markets – such as Italy and Spain – are showing single-digit or marginal increases in bookings.
Strong performance in occupancy, revenue and prices
Demand for short-term rentals in Europe remains strong. Overnight stays were up 12.2% year-on-year to 48.5 million in June. The average occupancy rate increased by 3.6%, reaching 61%.
At the same time, the average daily rate (ADR) increased by 6%, reaching 163 euros, while revenue per available property (RevPAR) increased by 9.8% to 99 euros.
Stability in booking times – differentiation by category
Detention times remained stable, with the average remaining at 27 days, the same as last year. However, variations appear depending on the category of property.
In budget accommodation, booking times fell slightly from 30 to 29 days, possibly due to economic uncertainty pushing travellers towards shorter-term decisions. In contrast, larger and more luxurious properties saw an increase in booking times – by 5 days in quads and 8 days in pentads – reflecting more planned bookings for family or group holidays.
Positive outlook, despite the constraints
The market momentum seems to be maintained in the coming months. Pre-bookings for the August to year-end period are up 9.5% compared to 2024. The peak is expected, as always, in August, with particularly high demand in less prominent Balkan and Baltic destinations.
Despite regulatory pressure in several mature markets, the overall picture shows that demand for short-term rentals in Europe is maintaining strong momentum – but with the map reshaping. Travellers seem to be seeking new experiences in places less explored, which opens up new areas of opportunity and challenges for each country’s tourism strategy.
