Why European Coastal Markets Are Outperforming Urban Rentals in 2026

The coastal shift

Remote work and extended-stay tourism are pushing demand toward secondary coastal markets — Costa Blanca, Algarve, and Puglia — while urban STR faces tighter regulation and shorter seasons.

Where yields are strongest

Spanish coastal 2-bed apartments often show 6–9% gross yield; net after costs lands at 3.5–5%. Portuguese Algarve villas benefit from longer seasons (April–October) and lower entry prices than Western capitals.

What to watch

Coastal markets carry climate risk, seasonal vacancy, and licensing complexity. Compare net yield — not gross — and check STR regulation before buying. Terrivio models seasonality and regulatory flags for all 13 supported markets.