Short-Term Rentals in Europe Continue to Grow Despite Restrictions

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The European short-term rental market continues to expand even as requirements for property owners become stricter. In the second quarter of 2026, almost 259 million guest nights were booked in the European Union through Airbnb, Booking and Expedia. At the same time, new EU-wide data-sharing rules came into force, while individual cities are reducing permitted rental periods and tightening licensing requirements.

Almost 259 Million Guest Nights in One Quarter

From April to June 2026, tourists spent 258.8 million nights in short-term accommodation in Europe booked through Airbnb, Booking and Expedia. This was 5.3% more than in the second quarter of 2025 and 23.9% above the figure for the same period of 2024. Over two years, the total increased by 50 million nights.

Growth continued after a record 2025, when 951.6 million guest nights were booked through the three largest platforms in the EU, up 11.4% from 2024 and 32.4% from 2023.

Eurostat’s regional data are published with a delay compared with national figures. In the first quarter of 2026, the Canary Islands and France’s Rhône-Alpes were the largest markets, with 8.8 million nights each. Andalusia ranked third with 8.3 million. Of the ten most popular regions, five were in Spain, three in France and two in Italy.

These figures indicate resilient demand but do not show that restrictions themselves are either driving growth or holding it back. The statistics record guest nights spent in properties booked through online platforms and should be considered separately from changes in regulation.

Short-Term Rentals in Europe

The segment has already become a significant part of Europe’s tourism accommodation market. According to the European Commission, short-term rentals account for around a quarter of tourist accommodation supply in the EU. The rapid development of online platforms has broadened opportunities for private owners, but it has also increased pressure on housing markets in cities facing shortages of affordable homes and heavy tourist demand.

At the same time, growth in guest nights does not automatically mean that supply is expanding. In cities with strict regulations, a new property may require registration, a permit or a change of use, while in some districts short-term rentals are limited to only a few weeks per year. Access to the market increasingly depends not only on a location’s tourism appeal but also on municipal requirements.

New EU Rules for Platforms Take Effect

Regulation (EU) 2024/1028 on the collection and sharing of short-term rental data has applied since May 20, 2026. It does not introduce a single Europe-wide limit on rental periods and does not prohibit Airbnb or other platforms from operating. Instead, it establishes common rules for information exchange between platforms and public authorities.

In regions where short-term accommodation must be registered, platforms are required to ensure that properties use a registration number and to provide authorities with activity data. The regulation leaves countries, regions and municipalities free to set their own rules governing market access, property use and housing policy. As a result, EU-wide requirements are increasing market transparency, while the practical conditions for short-term rentals continue to vary significantly from city to city.

Paris Short-Term Rentals: 90-Day Limit

In Paris, since January 1, 2025, a primary residence may be rented to tourists for no more than 90 days per year, down from the previous limit of 120 days. The property must be registered, and the registration number must be included in the listing. Additional requirements apply to homes that are not the owner’s primary residence, including permits to change the property’s use.

The city attributes the stricter rules to the impact of tourist rentals on the conventional housing market. According to the municipality, more than 95,000 short-term rental properties were registered in Paris in September 2024, and more than 78,000 of them were declared as the owner’s primary residence.

Restrictions in Amsterdam

In Amsterdam, tourist rentals require both a registration number and a permit. The owner or tenant must personally live at the address, and every rental period must be declared in advance. In most districts, a home may be rented to tourists for up to 30 nights per calendar year.

Since April 1, 2026, a stricter limit of no more than 15 nights per year has applied in eight districts in the city centre and De Pijp. The restriction covers areas including Jordaan, Oude Pijp and parts of the historic centre.

Amsterdam is already considering expanding the zone further. In October 2026, the city proposed cutting the permitted rental period from 30 to 15 nights in Helmersbuurt from January 1, 2027. If approved, it would become the ninth district in the city subject to the tighter limit. Public consultation on the proposal will run until November 8.

Barcelona to Remove 10,000 Apartments from the Tourist Rental Market

Barcelona has gone further by deciding not to renew existing tourist apartment licences. The city plans to apply regional rules under which current permits are limited to five years. By the end of 2028, more than 10,000 properties are expected to return to the conventional residential housing stock.

For investors, this approach means more than simply higher compliance costs. If a licence cannot be renewed, the entire property-use model changes: an apartment purchased for short-term rental may have to be converted to long-term rental, used as a private residence or sold.

Returns on Residential Property Investment in Europe

Almost 259 million guest nights in a single quarter confirm strong demand for short-term accommodation. However, calculating potential investor returns is becoming more complicated. In addition to the purchase price, average nightly rate and occupancy, investors need to consider permitted rental days, licensing or registration requirements, tourist and other taxes, platform commissions, management and cleaning costs, utilities and vacancy periods.

Differences between cities can completely change the financial model. A property in an Amsterdam district capped at 15 rental nights cannot be assessed in the same way as an apartment in a location where tourist rentals are permitted for most of the year. In Barcelona, the potential loss of a tourist licence creates an additional risk, while in Paris the property’s status and its eligibility for legal short-term rental use must also be taken into account.

For property buyers, legal due diligence is therefore becoming part of the return calculation before a transaction is completed. Strong tourist demand remains important, but so do the rules of the specific building, district and city, because they determine how many nights per year a property can generate income and which expenses must be deducted from revenue.

Outlook for Investors in Europe

International Investment analysts note that Europe’s short-term rental market is entering a more mature phase of development. Growth in tourist demand continues to support the segment’s appeal, but the income model itself is becoming less universal: results increasingly depend on the specific jurisdiction, property format and the resilience of the chosen strategy to regulatory change.

The competitive advantage is no longer simply the highest current yield, but the ability of an investment to remain economically viable under different scenarios. Properties that can be shifted from short-term to long-term rental without substantial losses, or sold under favourable conditions, appear more resilient than assets whose economics depend entirely on daily rentals.

Differences between European markets are likely to widen. In jurisdictions with more flexible regulation, short-term rentals will retain the potential to function as a standalone investment model, while tighter restrictions will reduce their role and increase the importance of alternative property-use scenarios. For investors, this makes the resilience of a specific location and the ability to adapt the strategy to changing rules increasingly important.