Europe’s Luxury Rental Boom Breaks Records
France Joins Southern Europe’s Luxury Leaders
France has strengthened its position alongside Spain, Italy, Greece, Portugal and other destinations at the core of Europe’s expanding luxury short-term rental market. According to Eurostat, 2024 set a historic record with 854.1 million guest nights in short-term rentals, marking the sector’s transition from niche to mainstream dominance within European tourism.
Luxury rentals have become a central pillar of Europe’s hospitality ecosystem, influencing hotel investment strategies and reshaping accommodation preferences across the continent.
Record Summer Peaks and Continued Growth
August 2024 recorded 152.2 million guest nights, compared to 96.9 million in August 2019. Nearly every month of 2024 posted higher bookings year-on-year.
Momentum carried into 2025, with 398.1 million guest nights registered in the third quarter alone. July reached 148.5 million nights, August 164.3 million, and September 85.3 million, reflecting annual growth of roughly 8–10%.
These figures confirm sustained demand for premium short-term accommodation across urban capitals and coastal hotspots.
Smaller Markets Post Double-Digit Gains
Malta led growth in Q3 2025 with a 24% increase in guest nights year-on-year. Cyprus rose 19.4%, Sweden 13.1%, and Greece 12.3%.
Such performance highlights the growing appeal of smaller and emerging luxury destinations, supported by investment in high-end villas, boutique residences and experiential travel offerings.
The Dominant Seven Maintain Momentum
France, Spain, Italy, Greece, Croatia, Germany and Portugal remain Europe’s primary luxury rental markets. All recorded growth in Q3 2025. Greece and Germany saw gains of around 12%, Portugal 9.6%, and Italy 5.5%.
Paris ranked as Europe’s top city for short-term rentals in 2024 with 23.5 million guest nights, followed by Rome with 15.7 million. In Spain, Andalusia attracted 13.3 million guest nights in Q2 2025, reinforcing the country’s diversified luxury appeal.
United Kingdom Expands Its Presence
The UK recorded 93.8 million guest nights between July 2024 and June 2025, up 10.2% year-on-year. London, Edinburgh and Cornwall continue to draw affluent travelers seeking premium short-term accommodation.
Regulation and Sustainability
Rapid expansion has prompted regulatory responses. In 2024, the European Parliament approved new rules requiring property registration to enhance transparency. Major cities are introducing limits on rental days to balance tourism growth with housing availability for residents.
Outlook for 2025–2026
Total nights spent in EU tourist accommodation reached 3.08 billion in 2025, underscoring the scale of Europe’s tourism recovery. Luxury short-term rentals continue gaining market share as travelers prioritize privacy, space and personalized services.
As experts at International Investment report, Europe’s luxury rental surge reflects a structural shift in travel behavior rather than a temporary trend. With balanced regulation and sustained investment, the premium rental sector is positioned to remain a key growth engine for Europe’s tourism industry through 2026 and beyond.