July 2025 saw a new all-time high in listings and short-term rental overnight stays in Europe. This performance is particularly interesting, as the pace of supply expansion slowed in several mature markets in Southern Europe.
According to AirDNA data, overnight stays totaled 61.3 million, up 7.7% year-on-year. Available listings rose just 2.8% to 4.15 million. The result of this equation was a 3% increase in occupancy, with France recording the largest improvement. Greece recorded a small decrease in occupancy of 2%.
At the same time, average daily rates (ADR) recovered marginally, recording an increase of 0.6% to 171.87 euros, while revenue per available room (RevPAR) increased by 3.6% to 120.54 euros.
Favorable macroeconomic environment
The current situation remains positive for tourism activity. The European Central Bank maintained the main deposit rate at 2% in July, with inflation stabilizing at 2% for the third consecutive month. Moderate monetary policy, combined with the easing of uncertainty around US-EU trade relations, strengthen economic confidence.
The Commission’s Economic Sentiment Indicator rose to 95.3 points (from 94.3 in June), although employment shows signs of fatigue. Despite mixed messages, European consumers continue to rank travel high on their spending priorities: 33% ranked it as a key “splurge” good, above purchases of material goods.
Major markets in motion
Registrations in Europe reached 4.15 million (+2.8% year-on-year), but the growth rate was the slowest since March 2022. Small drops were recorded in Italy (-1.5%), Spain (-1.2%) and France (-1.1%). However, in France, the decline is attributed to the particularly high supply created by last year’s Olympics in Paris; outside the capital, registrations moved up (+1.1%).
In contrast, Central and Northern European markets maintained strong momentum: Germany rose 9%, the Netherlands 8.7% and Switzerland 8.2%.
Luxury Real Estate Domination
Demand remained strong, with future bookings up 5.1% year-on-year. Of particular interest was the rise in luxury listings: luxury properties rose 14% and upscale by 9%, while midscale and budget categories were more subdued.
This shift suggests that higher-income travelers are continuing to spend on experiences, boosting the less saturated markets of the North (Norway, Denmark, Switzerland), which recorded double-digit growth in the luxury segment.
Occupancy picture
Despite the reduction in supply in mature markets, occupancy remained high: in France and Denmark it increased by 6%, in Spain, Sweden and Switzerland by 4%, while Greece, as mentioned above, recorded a 2% increase. In France in particular, demand increased by 11% with reduced supply, leading to an impressive increase in occupancy without a mega-event, such as last year’s Olympics.
Conversely, in markets where new listings were running at a faster pace (the Netherlands, Poland, Belgium, Austria), occupancy was pressured, as supply exceeded demand.
Return to revenue growth
Prices showed a small recovery in July. ADR strengthened by 0.6%, while the Repeat Rent Index – which measures only existing listings – increased by 6.2%. The divergence indicates that new properties are entering the market at lower price levels, which is pulling the average down.
The combined increase in occupancy and prices has lifted RevPAR by 3.6%, marking a return to positive momentum after the spring dip.
Outlook for the fall
Bookings for the months of September–October are moving at a strong pace: demand is up by 10% and 13% respectively. In contrast, November is showing signs of fatigue (+2%), likely due to economic caution.
The strengthening of the so-called shoulder months confirms a broader trend of lengthening the tourist season, which creates new opportunities but also challenges for short-term rental providers in Europe.
