Top places to buy a beach house for rent in 2025 (Europe)

Buying a beach house for holiday rentals can be a profitable investment and, at the same time, a personal retreat for getaways. Europe offers a wide variety of coastal destinations with different characteristics, prices, and tourist attractions. In this article, we explain why now is a good time to buy, what you should consider, how to manage the purchase and rental, and we show you the best destinations by country.

Why now is a good time to buy a beach house?

Post-pandemic tourism recovery: European tourism is returning to pre-COVID levels, with a special boom in holiday rentals.

Low interest rates: Although they have risen compared to previous years, they remain accessible for many buyers.

Growing demand for holiday rentals: More people prefer to rent entire houses and beachfront apartments for safe and private holidays.

Digitalisation of property management: Platforms like Airbnb, Vrbo, and remote management systems facilitate rental and property control from a distance.

What to consider before buying a beach house

Define your objectives

Personal use or investment: If you plan to use the house yourself, you may prefer a property with more amenities. If it is solely for rental, you should prioritise profitability and a strategic location.

Time horizon: Do you want a short-term investment to generate quick income or do you prefer a property that will increase in value in the long term?

Type of rental: Short-term (holiday) or long-term (temporary residents) rentals? This will influence demand and regulation.

Do your research before buying

Seasonality: Some destinations have a very marked high season (e.g., Costa Brava in summer) while others have more evenly distributed demand.

Local regulations: Many cities regulate holiday rentals with permits, day limits, or special taxes.

Accessibility: Good access from airports, public transport, and nearby services.

Competition: Evaluate the quantity and quality of similar properties in the area.

Find a specialist real estate agent:
Ask for references.
Ensure they have experience in holiday rental properties.
Make sure they know local regulations.
They can help you negotiate prices and avoid properties with legal or maintenance issues.

Draw up a business plan

Income estimate: Based on average occupancy and nightly rate.

Expenses: Taxes, maintenance, cleaning, management, insurance, utilities.

Expected profitability: Calculate the capitalisation rate (CAP rate).

Marketing plan: Platforms to advertise on, extra services, promotions.

Beach house vs. apartment (condo)

Privacy:
A beach house offers greater privacy, more space, and autonomy. In contrast, an apartment usually involves sharing common areas with other neighbours, such as hallways or lifts.

Services:
In a beach house, you are responsible for all services and maintenance. In an apartment, it is common to have shared amenities such as a pool, security, or common area cleaning, managed by the community.

Maintenance:
Houses require more attention and maintenance costs, as everything depends on the owner. Apartments usually have simpler maintenance, and many tasks are covered by the community fee.

Price:
Beach houses, in general, are more expensive than apartments, both in purchase and operating costs. Apartments are more accessible and allow starting with a lower investment.

Profitability:
Houses are more attractive to families or groups, which can translate into greater flexibility in prices and longer stays. Apartments, on the other hand, tend to attract couples or individual travelers, with high turnover and good occupancy during high season.

How much does a beach house cost?

Spain: from €150,000 in emerging areas to over €1,000,000 in premium areas (Marbella, Mallorca).

Portugal: from €200,000 in Algarve or Lisbon Coast.

Italy: from €250,000 in lesser-known areas to several million in the Amalfi Coast or Sardinia.

France: Côte d'Azur or Brittany, from €300,000.

Greece: islands like Crete or Rhodes, from €150,000.

Croatia: Dalmatia, competitive prices from €100,000.

Additional management costs

Regular maintenance: painting, repairs due to wear and tear or marine climate.

Professional cleaning: between €50-150 per stay.

Rental administration: between 15% and 30% of gross income.

Insurance: specific insurance for beachfront properties tends to be more expensive.

Local taxes and fees: municipal taxes, tourism fees.

How to buy a beach house to generate income

Consider the CAP rate (capitalisation rate). The formula is:

CAP rate=(Annual Net Income/Purchase Price​)×100

For example, if you buy a house for €300,000 and earn €18,000 net per year, the CAP rate is 6%.

- Watch out for hidden costs: renovations, community costs (in apartments), impact of climate (salt spray, humidity), high utility services.
- Taxes on holiday rentals: Vary greatly by country and municipality. Spain applies income taxes and, in some regions, additional tourist taxes. Portugal has income taxes on rental income with possible deductions. Always consult a local tax advisor.

How to finance a beach house

Mortgages for second homes: usually have slightly stricter conditions and higher rates.

Investment loans: banks specialising in rental properties.

Savings and personal contributions: it is advisable to cover at least 20%-30% of the value.

Consider initial costs: taxes, renovations, furniture.

Best destinations to buy a beach house in Europe in 2025

Spain: Costa del Sol, Costa Blanca and the Balearic Islands

Spain remains a leader in tourism and holiday rentals. The Costa del Sol (Malaga, Marbella) offers high demand and premium services. Costa Blanca (Alicante, Villajoyosa) has more accessible prices and good weather all year round. The Balearic Islands (Mallorca, Ibiza) combine nature and nightlife, ideal for exclusive rentals.

Portugal: Algarve and Lisbon Coast

The Algarve is famous for its spectacular beaches and golf, with high international demand. The Lisbon Coast, including Cascais, combines city and beach with excellent infrastructure.

Italy: Tuscany and Amalfi Coast

Coastal Tuscany and the Amalfi Coast are highly valued destinations, though with higher prices. Ideal if you are looking for a property with high tourist and cultural potential.

How to make your property attractive to guests

Careful and modern decor: create a welcoming atmosphere.

Complete equipment: air conditioning, high-speed Wi-Fi, equipped kitchen.

Professional photos: invest in good images.

Offer flexibility: allow remote check-in or self check-in.

Extra details: welcome with local products, personalised tourist guide, bicycles or equipment for water sports.

Impeccable maintenance: professional cleaning and quick response to incidents.

How to make money with your beach house

Diversify on platforms: Airbnb, Booking, Vrbo, etc.

Optimise prices: adjust rates according to season, local events, or demand.

Promotions and discounts: for long stays or early bookings.

Additional services: airport transfers, excursions, car or sports equipment rental.

Buying a beach house in Europe in 2025 is an excellent opportunity if you do good preliminary research and manage the property well. Each destination has its peculiarities and its audience, so choose according to your profile and objectives.