Location is one of the biggest success factors when investing in an Airbnb or short-term rental. Luckily at Beyond, we can use our data to identify the top European markets to invest in a holiday rental in 2022.
In part two of this blog series (read part one here), we’ll break down the rest of the top towns to purchase a short-term rental (STR). These locales are ranked based on each market’s rise in “Revenue per Available Night” (RevPAN) from 2021 to 2022. RevPAN allows us to make an accurate comparison from month to month by measuring revenue per night based on available nights. An STR, for example, might earn €10,000 one month and €20,000 the next, but if the available nights to rent the STR also doubled, those months would reflect the same RevPAN. In other words, we will identify those places with the most potential profit from an STR investment. For a more detailed explanation of RevPAN, check out our breakdown blog post.
Most European cities are now bouncing back in 2022 after a slow recovery process, some faster than others. Below we listed 6 additional European markets that are worth looking into if you're wanting to invest in a holiday rental property this year. All prices and percentages quoted below come from Beyond’s database, compare the last 12 months to the previous 13-48 months, and are for average nightly stays in a 2-bedroom rental.
6. Madeira, Portugal
Madeira is full of incredible dining, islands and beaches, fine arts, and a slower island pace of life amidst palm trees, all swimming in a rich history. While life rushes by on the mainland of Portugal, Madeirans enjoy a more laid back approach with afternoon alfresco dining beginning at lunchtime and finishing late and live music can often be heard drifting along the winding cobbled streets of the old harbour town of Funchal.
So far is 2022, Madeira boasted a 72% occupancy rate, which helped elevate the RevPAN to €69, which is a whopping 90% higher than the previous year, making it one of the hottest European markets to invest in.
5. Rome, Italy
Italy’s capital, Rome, is home to the Vatican as well as landmark art and ancient ruins. If you are looking for a gastronomic experience, Rome is home to over 13,000 restaurants — of which 1,912 are listed on the Michelin good food guide! Given its history, it will be unsurprising to learn that Rome has a flourishing tourist industry with Vatican City reporting 6.9 million visitors in 2019 (pre-pandemic). So you will never be short of paying guests.
After the uncertainty of the last few years, the city’s STR occupancy rate returned to a more normal 70% level in the last 12 months. Even more encouraging to owners, RevPAN in Rome increased by 111%. With limited housing stock, Rome can be an expensive yet consistent market to move into for STR owners.
4. Naples, Italy
Endless opportunities and neighbourhoods characterise this ancient city which enjoys a warm climate and an incredible diversity of things to do. The city of Naples is full of the vibrancy of life, a spirited destination with street vendors selling their wares, music at every turn, some of the best fresh produce in the world, and stunning architecture. In the last 12 months, occupancy in Naples was around 63% and RevPAN grew by 106% to €96.
3. Sevilla, Spain
Our final three investment locations are all located on the Iberian Peninsula in Spain, kicking off with Sevilla, the capital and largest city of the Spanish community of Andalusia. This fabulous city has excellent connections with direct flights arriving from all over the world. It is a popular destination in Spain, easily accessible by a number of large towns within a few hundred miles both in Mexico and the United States. In the last 12 months, occupancy levels grew to 66% and RevPAN rose by 120% to almost €105. This makes Sevilla a fantastic market to invest in.
2. Malaga, Spain
Synonymous with summer and tourism, Malaga has so much on offer you might struggle to know where to start! Sparkling turquoise blue waters and soft white sandy beaches stretch for miles along the Costa del Sol framed by the rugged peaks of the Andalucian mountains. Malaga enjoys balmy breezes and 300 days of sunshine each year. The mark of Roman occupation can be seen in the oldest surviving monument in Malaga, the Amphitheater and sightseers about year-round. In the last 12 months, the RevPAN leap has been significant at 71%, translating to €75.
1. Córdoba, Spain
And here we are, number one! Córdoba. The capital city of the province of Córdoba is located in the region of Andalusia. Sitting on the banks of the Guadalquivir River, Córdoba is home to the world-famous Mezquita - Catedral de Córdoba with its mix of Moorish, Baroque and Gothic architecture, the prayer hall dates back to 785 CE. Moreover, Córdoba is a foodie heaven. Tapas in Córdoba are taken very seriously.
Córdoba is not the best-kept secret in Europe, with many having already invested in real estate. But a smart STR investment in this Iberian town can be quite lucrative. RevPAN in the last 12 months was €88 per night, rising by 95%.
Congrats on coming this far. If you still haven't read the 1st part of the hottest European markets to invest in in 2022, make sure to have a look! For a more detailed look at RevPAN or to compare your short-term rental against the market, check out our Insights tool today. It’s free for all property managers, owners, and hosts.
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