×

Our Most Profitable Holiday Rental Locations in Europe

July, 27 2022 ( Updated July, 29 2022)

A lot of factors in the recent past have led to a boom in the vacation rental market. From the post-pandemic travel trends to the surge of digital nomadism and domestic travel, everything has contributed significantly to its rise. This is not surprising though given that renting out property is a preferred income option for many and vacation rentals provide safety, flexibility and privacy. 

But as a potential homeowner or even an experienced one, how can you decide the most profitable location for your vacation rental business or second home? 

Stunning Mont Blanc View, Happy.Rentals most profitable holiday location with year-round bookings.

Our most profitable holiday rental locations in Europe

Two major factors affect the profitability of the vacation rental business: seasonality and vacation rental occupancy. Seasonality means the high and low seasons of a business, meanwhile, vacation rental occupancy determines the overall bookings of your property. Therefore, places that have low or no seasonality and high occupancy rates are some of the most profitable locations to own holiday homes as they enjoy maximum booking potential. 

According to our recent booking trends, Spain, Italy, France and Croatia have turned out to be some of the best countries to have a holiday home in Europe post-COVID. But to give you a fair idea of the best locations in these countries, we have rounded up the list of our top 5 locations that have exceeded expectations and led to more bookings than ever! 

So, read on and find out our most profitable locations to own a holiday home in Europe!

1. Chamonix, France

The year-round destination of Chamonix tops our list with the maximum number of bookings. The area is a favourite amongst French and English travellers, with high occupancy of our vacation rentals throughout the year. This is indeed one of the strongest points of Chamonix, along with its family-friendly amenities and attractions that make it a total winner. 

However, it is not just Chamonix that enjoys worldwide popularity and tourism but rather the whole Pays du Mont Blanc area including Megève, where we now have our local office to help you start earning carefree rental income in this world-famous ski resort!

2. Lugano, Switzerland

One of the sunniest areas of Switzerland also has one of the best Alpine tourist destinations. With year-round bookings and diverse tourism, the millennial city of Lugano has gained the second highest booking ranking in our property portfolio.

Our second-most booked region, Lugano city's famous Parco Ciani, with lush foliage and mountains in the background.

The iconic filigree gate of Parco Ciani in Lugano, our second-most booked area

In addition to the main city, small picturesque villages like Bissone, Melide and Morcote are also gaining traction among vacationers making them upcoming profitable locations to buy a holiday rental property. These areas are becoming especially popular as digital nomads are now looking for longer, more affordable stays and therefore are more inclined to opt for these small towns to enjoy life near the lake.  

3. Marbella, Spain

The land of the sun, sand and the Mediterranean sea comes third on our list. 

With year-round travellers coming in to enjoy the spirit of Spain, Marbella has become one of the best locations to buy a holiday home and rent it out for a stable side income. The nearby towns of Estepona, Benahavís, and Fuengirola are also great options as they are not far from Marbella’s glamour and provide comparatively affordable properties to buy with equal earning potential.

In fact, the whole Costa del Sol region has become particularly attractive for nomadic travellers who seek healthcare, golfing, fun and the modern tourist infrastructure, all of which this part of Spain has!

4. Sardinia, Italy 

Sardinia has long been the playground of VIPs and a favourite amongst international travellers, making the Emerald Coast our fourth most booked region! However, Sardinia’s policy that prohibits construction within 2 kilometres of the coast has opened up a bigger vacation rental market than ever on this famous Italian island. 

Happy.Rentals' fourth most-booked region for vacation rentals, Sardinia, with its famous Emerald Coast and clear waters.

Beach or inland stays: Sardinia is a holiday rental location that enjoys occupancy everywhere

Now, it is not only the beach rentals but holiday homes in smaller and remote villages of Sardinia that have good profitability. For an authentic experience of the local life too, many travellers are opting for stays away from the coast, thus providing a great opportunity for second homeowners everywhere in Sardinia to start earning a carefree rental income. 

5. Croatia 
The last on the list is Croatia, or what we call a bonus vacation rental market area. 
With places like Split and Dubrovnik calling out to Games of Thrones fans and driving in more international tourism, Croatia is one of the most attractive alternative markets that share the same earning potential as the previously mentioned holiday destinations.

Plus, with Croatia’s digital nomad policies making it super easy for people to stay in the country and enjoy its many hidden treasures, letting out a holiday home is sure to bring the desired extra income. What’s more, with one of our newest partner offices in Rijeka, you will have assured ease of mind, maximum exposure for your property and our local property managers to unlock its full potential!
Turquoise waters washing the golden sands of the famous Zlatni Rat Beach in Bol, CroatiaThe stunning Zlatni Rat, located close to our diverse holiday rentals in Bol


Today the holiday rental market meets all kinds of traveller demands, with short-term rentals proving to be a particularly profitable and flexible market after the pandemic. So, if you are a homeowner who already has a second home in these locations and wants to start earning carefree rental income, then now is the time! You can let out your first, second or even your tenth holiday home using our professional vacation rental management services.


Enjoy renting out with no set-up costs, listing on 3000+ partners and websites, cleaning and maintenance, 24/7 crisis management and more. For further information, register now or reach out to our local property managers.

GET TRAVEL UPDATES

join over 80,000 people who receive our updates