In this article we investigate the growing European short-term rental markets, comparing reservation levels through May with those recorded in May 2019. Not only do we identify the European hotspots emerging in the wake of the pandemic, but in analyzing the short-term rental data, we pick up on trends within these top performers.
Top 50 Growing European Short-Term Rental Markets
We took the largest 500 vacation rental markets in Europe in order to focus on the significant areas of growth. In taking the top 10% of these by reservation growth, we observed the following patterns:
- Non-urban markets are flourishing
In fact, 84% of the top 50 recovered vacation rental markets are non-urban. Beach and lake destinations and rural or mountainous locations both represented 42% of the markets.
- Prices have increased in 2021
Rates in these markets in were 34% higher in May 2021 than in May 2019 on average. Only 8% of destinations saw a decrease; the average in May 2021 was €102 per night.
- Confidence in summer vacation rental demand is high
In addition to inflated May booked rates, rates advertised for the summer months are 28% higher than those advertised at this time in 2019, at €106. Examples from the top 5 can be seen below. This reflects the increase in demand noted in these markets.
- Justifiably, as Summer occupancy is significantly increased
Occupancy on the books for the Summer is currently 21% up compared with the same point in 2019. Only 16% of markets have seen a decrease.
- Germany, France & Poland represent 88% of top growth markets
7 countries are represented in the top 50, with Spain, the UK and Switzerland represented in addition to the countries of our top 5. Germany accounts for most top markets (21).
- It’s not just recovery; it’s growth!
The reservations growth of our top 50 growing markets is a huge 128% from May 2019-2021. This constitutes a very significant growth in demand for these destinations, not just a recovery!
Top 5 Growing European Short-Term Rental Markets
Saalbach is a resort town with 495 listed short-term rentals. With its local access to mountain-biking and skiing, it has seen the biggest increase in reservations in 2021 compared with 2019, with rates 41% higher (€271). Summer occupancy is matching that of 2o19.
A kite-surfing destination; Grzybowo boasts a long stretch of beach along the baltic sea. Popular with holiday-makers, it is home to 540 short-term rentals, which have seen our second-largest growth in demand. ADR in May was €64, up 44% on 2019. While Summer occupancy is 42% higher this year, advertised rates are interestingly 81% increased at €79 on average.
One of the Frisian Islands in the North Sea, Wangerooge is close to the borders of the Netherlands, Denmark and Germany. While it only has 1,055 residents, throughout the summer, the island welcomes up to 7,000 visitors per day to stay in its 506 rental properties. The vacation rental data indicates a 142% increase in May ADR at €147. Summer occupancy and advertised rates are both increased (€151).
Karpacz is the largest vacation rental destination in our top 5. IT is a spa and ski resort town in southwestern Poland, it is home to 1602 vacation rentals that saw 346% more reservations in the May of this year than 2019. May booked and Summer advertised rates were both heightened, at €56 and €79 respectively. Summer occupancy meanwhile was up a respectable 63%.
This seaside resort in Brittany, France saw its May ADR climb 40% to €87 in 2021 from 2019. Reservations of the 668 listed short-term rental properties were up 261% in May. Meanwhile, advertised rates for the Summer are 37% increased over 2019 ($€98). Occupancy this Summer is currently 31% higher than at this point in 2019.
Short-Term Rental Data Take-homes
Non-urban inventory continues to ride a wave of demand in the resurgence of travel, with all of our top 5 growing European markets beach, mountain or rural centred. And this seems to set to continue, with Summer occupancy 28% increased on average across our 86% non-urban top 50 cohort.
Overall the news is positive – many markets are enjoying not just a recovery, but a growth in demand over and above what they could expect. With the vacation rental data telling us that rates are over 30% increased on 2019, it is clear that confidence in demand has returned, as indeed has occupancy this Summer!
Why not visit our free vacation rental data dashboard to search for insights in your area?