Best Places to Buy and Rent Out Holiday Homes: Statistics to Help You Decide

We know it’s a long way to Istanbul, but we have a very good reason to put Turkey on our list — low property prices and plenty of things to attract guests.

Turkey is now the best country to buy a rental property in, given its superb tourist offer, its current inflation rate, and the benefits foreign buyers can get such as looser requirements for citizenship.

Foreign homebuyers have never bought as many homes in Turkey as in the first eleven months of 2022: 61,104 units.According to TurkStat, there was a 20.4% increase in purchases by foreigners in 2022, mostly driven by Russian emigrants.

However, in the first nine months of 2023, house sales to foreigners decreased by 43.5% compared to the same period of 2022, with 28,064 units sold. Still, this represents a significant increase compared to the 2010s.

Also, the annual inflation in the country is 61.5% as of September 2023, falling from 85.5% in October 2022. This means the lira has weakened and foreign money may be more welcome in the country. The rental yield is also promising: 5.62% according to a GlobalPropertyGuide report.

At the same time, the requirements for a Turkish citizenship are lower as of 2018: you become eligible as soon as you purchase real estate worth $250,000 minimum.

And last but not least: Turkey attracts millions of tourists each year, given its gorgeous coast, mountains, ancient cities, and rich historical and cultural legacy. So if you want a holiday rental farther from home, don’t miss out on Turkey.

Greece is known for its beautiful beaches, crystal-clear waters, and ancient ruins. Aegean and Ionian islands offer thousands of properties for sale, with some of them as cheap as $50,000. UK buyers are increasingly looking into properties in Crete and Corfu but also the Peloponnese peninsula.

Now let’s look at some numbers relevant for foreign home buyers in Greece.

As a part of the Golden Visa Program, Greece offers residency benefits to buyers who spend at least €250,000 on property in the country, outside of Athens, Thessaloniki, Mykonos and Santorini, or €500,000 in these areas. At the same time, it’s one of the top tourist destinations in Europe, promising a return on investment in the coming years.

In Corfu, the average price per square meter is €2,083, or 21.50% more compared to 2022. In the Heraklion prefecture, it’s €1,500 or 10% up. And the rental yield in the country is solid, too: in Q3, 2023 it stood at 5.22%.

So while the real estate prices aren’t as low as in Turkey, the country is more economically stable and it shows a similar level of booking potential. Greece has a strong tourism industry: last year, 29.9 million people visited Greece.

Portugal is a popular destination for British tourists, with gorgeous beaches and fascinating historical and cultural heritage. If you’re looking for good value, Portugal could be the best place to buy a holiday home to rent out, and the stats show why.

In Q3 2023, the median house price in Portugal was €1,629 per square meter, an increase of 9% compared to the previous year. However, some areas are more expensive. The average price is €3,411 per square meter in Lisbon, €2,537 in Porto and €2,690 in the Autonomous Region of Madeira.

The rental yield in Portugal is also good: 5.64% in the third quarter of 2023 across all the major cities. The average rent price per square meter in Portugal is €15.4 across the country. Lisbon is expectedly the most expensive, coming at €18 per square meter. Lisbon is followed by Algarve at €13.5 and Madeira at €13.3.

When it comes to tourists and bookings, the Island of Madeira led with the longest average length of stay with 4.87 nights, while visitors in Central and Northern regions stayed the shortest with only 1.8 nights on average. Finally, tourism in Portugal is showing signs of recovery, with 15.3 million international visitors in 2022 and 8,208,112 in the first eight months of 2023.

Spain is a favorite for foreign home buyers, especially as home prices are still relatively low compared to other European countries while tourism and the economy promise a safe environment for foreign home buyers and investors.

The average house price in Spain in Q2 2023 is €1,793.2 while inflation is relatively stable at 3.5%. In 2022, the number of tourists in Spain exceeded 100 million (Britons account for 15 million), making it one of the most visited countries in Europe.

However, in Spain’s provincial capitals, the prices can be significantly higher, so keep that in mind when looking at property prices: Catalonia is incredibly expensive with €4,400 euros per square meter.

However, the autonomous community of Valencia has a great balance of developed tourism and house prices: €1,892 per square meter and 8.6 million international tourists in 2022. The community of Extremadura has the cheapest homes on average, with €1,283 per square meter.

The average gross rental yield in Spain is even higher than in Portugal, Greece, and Turkey: in 2023 it stands at 6.09% across major Spanish cities.

The best areas to buy a rental holiday property in Italy include Tuscany, Umbria, and the Amalfi Coast. These are the most popular tourist areas, although they do come at higher prices.

While visits to Italy dropped after the pandemic, the tourism industry has been recovering steadily, so in 2022, 74.4 million people visited Italy. This is more compared to 2021 levels, but fewer compared to pre-pandemic numbers.

The average monthly rental price in Italy ranges from €6.7 in Umbria to €15.9 in the Aosta Valley and €15.8 in Lombardy for a square meter. The popular Tuscany has the average rental price of €13 per square meter. The gross rental yield in Italy averages at 7.4%.

Moreover, the average house price in Italy is €1,820 per square meter, but the prices for the largest cities go as high as €4,953 in Milan and €3,017 in Rome. Tuscany also has relatively high prices averaging at €2,322.

Italy has become famous for its programs for selling rural homes to foreigners at low prices, although the home buyers need to restore the property out of pocket. However, it’s worth looking into programs like this if you’re interested in buying a holiday home in Italy.

Croatia is a popular Balkan destination with numerous island getaways and Venetian, Roman, and Slavic historical and cultural heritage. It’s easy to access by car and by plane, and is a member of the EU and the Schengen zone.

Property prices in Croatia are more affordable compared to other European countries, which makes Croatia one of the top places to buy a rental holiday property.

According to the Croatian Bureau of Statistics, the total average price per square meter for new dwellings in the first half of 2023 was €2,219. Most foreigners purchase property on the Adriatic Coast, and according to GlobalPropertyGuide, there are over 70,000 foreign homeowners in Croatia.

Finally, Croatian tourism remains strong with 11.5 million overnight stays up to September 2023 and 2.2 million international tourist arrivals, which is a significant number compared to the Croatian population of 3.9 million.

The average gross rental yield in Croatia is 4.59% in the second quarter of 2023. It’s lower than in other destinations we’ve covered. However, the Croatian market is less saturated with foreign home buyers and the destination is growing in popularity. If you’re looking to have a relaxed getaway in a place that many are still discovering, the Croatian seaside is worth your consideration.

France is the most visited country in the world: last year, it had almost 80 million arrivals. It has amazing booking potential, but we put it at the end of the list because of its high property prices. The last official report shows that the average prices in popular destinations in the south of France go as high as €500,000 in Corsica and €414,000 in Montpellier.

Still, you can find property in less saturated cities such as Toulon, with a moderate median price for an old apartment of €2,470. The rental yield averages at 4.39% in the largest French cities, still lower than countries such as Spain and Turkey.

However, France offers a stable economy, it’s much more accessible by car from the UK, and its tourist potential lets you choose between seaside rental properties, cottage rentals in the French wine regions, or even cabins in the French mountains for skiing enthusiasts.

UK travel and tourism statistics reveal a steady growth of revenue in holiday rentals. In 2023, UK revenue in vacation rentals promises to reach $4.63 billion.

But what does this have to do with Cornwall?

Along with Cumbria, Cotswolds, Peak District, and Dorset, Cornwall was in the five top UK locations with the highest earnings in 2022. At the same time, a new report from AirDNA suggests Cornwall could have the highest investment potential of all UK locations.

How healthy is UK tourism? The report shows the UK had the fifth-highest year-on-year demand growth in the summer of 2023, after Norway, Sweden, Poland, and Hungary. So if you want to buy a holiday rental property in the UK, consider adding Cornwall to your list of possible locations.

Another popular location for a UK holiday rental property is Peak District, where the famous national park, charming villages, and famous pubs attract millions of visitors a year. Another advantage of Peak District is also that it’s easy to reach from London and Manchester, which may be helpful to you as well as your guests.

The average home price in Peak District grew 5% compared to the previous year, reaching £285,734 in 2022. A four-bedroom property brought in £41,752 on average.

According to the latest SykesCottages report, the popular tourist location had the highest earnings from holiday rentals in 2022, with the average income of £28,000 per year. But how much do properties cost in the area?

Home sales statistics for Cumbria show that terraced properties accounted for most of the sales, while the average cost of a terraced property went as low as £155,086. The price increases as we move on to larger properties, such as semi-detached homes which sold for £209,932 on average. Detached properties cost the most, or £395,255 on average.

So what are the best locations to buy a holiday rental property in this area?

One of the top suggestions for aspiring holiday let owners is Cheshire, attracting tourists to its medieval- and Roman-period attractions and picturesque countryside. In Cheshire, the average house costs £256,526, while a four-bedroom rental has the potential to bring you an average annual income of £45,549.

Lake District itself has the average house price of £295,307, with an 8% increase compared to the previous year. The average rental revenue home owners reported is £43,789.

The North Wales marvel attracts curious minds with its remains from prehistoric and Celtic times. It also attracts home owners: it saw the highest house price increase compared to the previous year, reaching a stunning 10%.

The average home in Anglesey cost £249,169 in 2022 and it brought £37,867 in revenue for a four-bedroom home.

Although it’s a hot housing market and you may have to compete with other holiday let owners for property, the area promises plenty of things to do for your guests for years to come.