Europe: Rentals Boom, Record Summer Demand

Posted onAuthorAimee Lawrence

Important to Know

  • Europe’s Short-Term Rental Boom: The European short-term rental market is set for record growth in summer 2025, driven by strong traveler demand and increased property listings.
  • Leading Countries: Greece shows impressive 22% growth in bookings, but Poland (37%), Czech Republic (30%), Norway (27%), Belgium (24%), and Germany (24%) are also experiencing significant surges, leading Europe’s market.
  • Strong Market Performance Indicators: Across Europe, short-term rental demand (nights booked) is up 27.4%, average daily rates (ADR) are up 4.2% (to €150), occupancy is up 18% (to 59%), and revenue per available rental (RevPAR) is up 23% (to €88).
  • Resilient Travel Demand: Despite economic and geopolitical uncertainties, European travel demand remains strong, fueled by domestic tourism, easing inflation, and a 7.1% increase in active rental listings.

Europe’s short-term rental market is experiencing a significant boom for the summer of 2025, with several countries, including the United Kingdom, Poland, Czech Republic, Norway, Belgium, Germany, Denmark, and particularly Greece, leading the charge with record-breaking booking surges and revenue. This growth is attributed to resilient traveler demand, an easing of economic pressures, and an increase in available rental properties.

According to recent AirDNA data for the upcoming summer (June, July, and August 2025), eighteen of Europe’s twenty largest short-term rental markets have seen at least a ten percent rise in bookings compared to last year. Greece stands out with a robust 22% year-over-year growth in reservations, positioning it as a top destination. However, Poland leads all countries with a remarkable 37% increase, followed by the Czech Republic (30%), Norway (27%), and both Belgium and Germany (24%). In contrast, Northern European countries like Finland and Denmark show more modest growth (8-9%).

The European travel sector’s resilience is evident despite geopolitical tensions and economic fluctuations. The total number of active short-term rental listings across Europe has increased by 7.1% to 3.6 million units. Demand for overnight stays has surged by 27.4%, totaling approximately 36.6 million nights booked. This increased demand has positively impacted revenue, with the average daily rate (ADR) rising by 4.2% to €150 per night, and occupancy rates increasing by 18% to 59%.

Consequently, revenue per available rental night (RevPAR) grew by an impressive 23% to €88. April 2025’s strong performance, where all twenty key markets saw revenue growth, laid a solid foundation for this anticipated summer success, with Germany, Denmark, and Norway showing particularly high revenue increases. For Greece, this data signals a vibrant and prosperous tourism season ahead.