Doing Business from the Shore: Airbnb in 50 Mediterranean Cities
50 Cities Tourism Economics Benchmarked
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With summer officially underway, the Mediterranean enters its high season. This sun-drenched, sea-bound region—ringed by history, culture, and mass tourism—is also a crucible for one of the most dynamic markets in the short-term rental economy. From Mykonos to Marbella, this edition dives into 50 key coastal cities, drawing from AirDNA’s June 2025 data to explore Airbnb performance across 12 Mediterranean-facing countries.
The Scope: From Lisbon to Alexandria
Our selection spans Spain, France, Italy, Croatia, Greece, Turkey, Cyprus, Israel, Egypt, Algeria, Morocco, and Tunisia. While necessarily curated, this list captures diverse markets—from world-renowned luxury enclaves to emerging North African destinations—to assess both the spread and maturity of short-term rentals.
This benchmarking isn’t just about performance—it's about geography and the shifting balance between local housing and global tourism.
Revenue: High-End Hubs Command the Market
Some cities simply dominate the revenue chart. Positano leads at €132,500/year, followed by Mykonos (€99,600) and Sorrento (€71,900). These are high-demand, low-inventory destinations, where exclusivity and Instagram appeal generate outsized returns.
The broader trend? Luxury pays—but only in places where desirability meets constraint. Notably, cities in Southern Europe are overrepresented in the top tier, with North African and Eastern Mediterranean markets earning far less on average.
Chart 3 helps visualize revenue by country, simplifying intra-regional comparison
Average Daily Rates: Pricing Mirrors Prestige
High revenues aren’t just about quantity—they're often about pricing power. Average Daily Rates (ADR) in Positano hit €699, followed closely by Mykonos (€665) and Saint-Tropez (€474). These are markets where nightly rates rival luxury hotels.
This pricing pattern confirms a top-heavy market: for the most profitable listings, even moderate occupancy yields strong returns.
Occupancy: Seasonal Yet Strong
Occupancy levels are robust across much of the Mediterranean, despite strong seasonality. Dubrovnik (76%), Barcelona (75%), and Málaga (74%) lead the way. Many others remain close behind.
Interestingly, several high-grossing cities (like Mykonos) achieve their returns with relatively lower occupancy, underscoring the dominance of price over volume in luxury locations.
Listings: Market Saturation Varies Widely
Rome, Barcelona, and Athens dominate in number of active listings, each with 13,000+ properties. But smaller destinations also show deep penetration. Antalya, Nice, and Naples each host over 9,000 listings—despite tighter land and housing constraints.
The density suggests maturity—and possibly saturation—in much of Southern Europe. North African cities, by contrast, remain nascent.
Where Price Meets Demand
Plotting ADR against occupancy rates reveals the strategic landscape. Cities like Positano, Sorrento, and Saint-Tropez sit in the sweet spot—high occupancy and high pricing. Conversely, cities like Alexandria or Izmir face a tougher balance.
The divergence reveals two distinct Mediterranean markets: elite destinations that charge more and host less, and volume-driven cities where moderate rates meet year-round demand.
Seasonality: Peaks, Valleys, and the Summer Surge
While annual figures offer a solid benchmark, Airbnb profitability in the Mediterranean is heavily seasonal. The latest data from AirDNA reveals clear occupancy spikes in summer months across top destinations.
Dubrovnik and Sorrento hit occupancy highs of 90%+ during peak season, then drop below 40% by November.
Mykonos and Saint-Tropez show sharp summer peaks followed by steep declines—classic profiles of ultra-seasonal luxury markets.
Palma and Positano show more stable performance, though still deeply cyclical.
This reinforces the business model: summer can make or break the year. For hosts, it’s a high-stakes sprint. For cities, it’s a logistical test—of infrastructure, regulation, and coexistence.
Closing Insight: The Two Faces of the Med STR Market
The short-term rental business around the Mediterranean is not uniform—it’s a patchwork. The northern and western shores (Italy, France, Spain, Croatia) dominate in both revenue and listings, while eastern and southern shores (Turkey, North Africa) show signs of potential but lag in monetization.
Platforms like Airbnb thrive where tourism demand is intense, but so do tensions—especially in cities where housing affordability clashes with high occupancy and rising nightly rates.
For hosts, the Mediterranean continues to offer some of the world's highest short-term rental returns. But as the business grows, so do the social and regulatory challenges, from rent inflation to overtourism. In other words, the question isn’t whether short-term rentals will expand—it’s how sustainably they can do so.
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