From House-Hunting to Holidaying: What $1.8M Buys Across Europe’s Regional Hotspots

From House‑Hunting to Holidaying: Stretching $1.8M Across Europe’s Regional Hotspots

Hook: If you’ve ever scrolled listings and sighed—"I want a real home, not a postcard rental"—you’re in the right place. Whether you’re a remote worker scouting a European base for long stays, a family thinking about relocation, or a traveler who wants a vacation home that actually pays back, understanding what $1.8M (about €1.6M in early 2026) buys today matters more than ever.

Why this comparison matters in 2026

Markets shifted dramatically between 2022–2025: mortgage rates, remote‑work policy expansions, and stricter short‑term rental rules in many tourism towns changed what makes a good buy. Late‑2025 saw renewed interest in regional hotspots—affordable, well‑connected, and lifestyle rich—and early‑2026 is where opportunity meets scrutiny. This guide compares three recent listings in the Montpellier/Sète area to equivalent buys in Portugal, Spain, Italy, Croatia and Greece, with practical steps for long stays, holiday rentals and relocation scouting.

Snapshot: The French baseline

Sète — Stylish renovated house (listed at $1.86M / €1.595M)

What you get: A 1950-built, tastefully renovated 4‑bedroom house (~1,485 sq ft) with sea and canal views; designer interiors; two levels; 2019 renovation. Sète offers strong rail links (TGV to Paris, regional service to Montpellier ~15 minutes) and an authentic port‑town vibe.

Montpellier — Historic centre apartment

What you get: Central, characterful apartment steps from cafés, universities and tram lines; high walkability and strong short‑stay demand from students and cultural tourists. Expect smaller square footage than coastal villas but higher daily rental yields in peak season.

Montpellier — Country‑styled villa

What you get: Larger lot, Provençal landscaping, modernized interiors—good for families and longer stays. Lower density, parking and outdoor space make it desirable year‑round.

“In southern France you buy more than walls—you buy a lifestyle: proximity to Mediterranean food culture, regional transport and a relaxed pace.”

What similar budgets buy elsewhere in 2026

Below are practical, comparable options for approximately $1.8M (€1.5–1.65M depending on rates). Each entry lists the typical product, lifestyle fit, rental potential, and key cautions to know now.

Portugal — Algarve or Silver Coast: a modern villa with guest wing

• Product: 4–5 bedroom contemporary villa with pool, sea views near Lagos or Cascais‑adjacent towns on the Silver Coast; 3,000–4,000 sq ft total.
• Lifestyle: Excellent for winter‑friendly climate, golf and expat communities; English widely spoken.
• Rental potential: High for longer, off‑season stays—Portugal’s long‑stay platforms and regional marketing attract remote workers.
• Cautions: New residency rules (post‑2024) and stricter short‑term licensing in high‑tourism municipalities; check local Câmara (town hall) requirements.

Spain — Valencia / Alicante: renovated townhouse or coastal finca

• Product: Restored historic townhouse in Valencia city centre or a 3–4 bedroom coastal finca near Alicante with land.
• Lifestyle: Strong gastronomy, excellent transport connections (high‑speed rail & airports), lower property taxes than France in many regions.
• Rental potential: Good year‑round demand; inland towns may be quieter off‑season but attractive to long‑stay visitors.
• Cautions: Autonomous regions set STR (short‑term rental) rules—Catalonia and Balearics are tight; check Valencian Community regulations.

Italy — Puglia or Umbria: masseria or converted farmhouse

• Product: Restored masseria or stone farmhouse with olive groves, pool and multiple guest suites—perfect for hybrid holiday/holiday‑rental models.
• Lifestyle: Slower pace, food culture, and countryside privacy. Lower price per sqm compared with northern Italy.
• Rental potential: High for curated experience stays and boutique events, but management logistics matter (staffing, servicing).
• Cautions: Red tape on renovations and heritage rules; VAT and tax incentives vary if you invest in agritourism.

Croatia — Istria or Dalmatian coast: stone villa with sea access

• Product: Restored stone villa, expansive terraces, direct sea or short boat ride—often slightly better sq ft for the price than Western Europe.
• Lifestyle: Sailing culture, summer tourism peak; quieter winters but growing year‑round expat communities.
• Rental potential: Strong summer yields, but recent municipal limits on STRs in popular towns may reduce peak returns.
• Cautions: Croatia tightened residency and property purchase rules post‑2023 in certain zones—get an EU‑qualified lawyer.

Greece — Crete or Corfu: seaside villa or inland country house

• Product: Spacious villa with guest cottage, olive terraces, or a renovated traditional home in a village with fast internet upgrades.
• Lifestyle: Exceptional food, sun, and affordability. Islands are pushing infrastructure upgrades to support longer stays (2025–26).
• Rental potential: High seasonality, but long‑stay remote workers increasingly choose islands off‑peak.
• Cautions: Infrastructure variability—check broadband, water supply, and winter heating if you plan year‑round occupancy.

Head‑to‑head: what to weigh when comparing properties

Here’s a practical checklist to use when you compare the Sète/Montpellier options to alternatives above. Bring this list to viewings or virtual tours.

Practical due‑diligence checklist

1. Connectivity: Confirm fiber or reliable 4G/5G speeds—run a speed test at the property and ask neighbours about winter performance. If you rely on remote work during travel, consider packing for long transits and layovers (see our Tech‑Savvy Carry‑On guide) and set up a robust home‑office kit (Home office tech bundles).
2. Transport: Proximity to TGV/airport/regional rail. Sète’s TGV links make it commuter‑friendly to Montpellier and Paris; some coastal towns rely on infrequent ferries or longer drives. Check local transit alternatives and last‑mile options such as e‑bikes or scooters.
3. Regulations: Check STR licensing, town planning, and conservation restrictions. Many 2024–25 policy changes continue to be enforced in 2026 — and local short‑let enforcement can affect returns, so model for caps and permit timelines and look at microcation strategies like Last‑Minute Bookings & Microcations.
4. Insurance & climate risk: Coastal properties need specific flood/sea‑level impact insurance; obtain a climate‑risk report. Consider how changing tourism flows and border processes might affect occupancy (see notes on EU border trends).
5. Running costs: Property taxes (e.g., France’s taxe foncière), utilities, communal fees and local management fees for rentals.
6. Community & services: Healthcare access, international schools (if relocating), grocery and cultural life.
7. Yield vs usage: Model expected rental income vs personal usage—seasonality will dominate in islands and coastal towns.

Negotiation and financing tips

• In 2026 many buyers still face higher borrowing costs than 2019. Pre‑arrange mortgage approval and compare fixed vs variable options—European banks now offer longer fixed periods and portability in some markets.
• Use comparable sale data from the last 12 months, not annual averages—post‑2024 volatility makes rolling 12‑month comps more accurate.
• Ask the seller about recent renovations, permits, and energy performance certificates (EPC/ADEME reports in France). Energy efficiency improves resale and rental attractiveness.

Long‑stay logistics: making a property work for living and earning

Owning or leasing a place for months at a time changes what you care about. Below are steps to make a property useful whether you’re holidaying three months a year or relocating indefinitely.

Start with a multi‑scenario use plan

1. Scenario A — Full relocation: check residency, tax obligations and health coverage. Many EU countries updated digital‑nomad and residence rules in late‑2025—investigate current thresholds for tax residency vs non‑dom status. Also confirm passport and border services if you expect seasonal arrivals; local processing capacity can create delays (managing passport services).
2. Scenario B — Hybrid life (3–6 months): prioritize strong internet, flexible rentals or co‑hosting agreements, and reliable local cleaners/property managers.
3. Scenario C — Holiday home with STR revenue: confirm local permit caps, tourism taxes, and local STR platforms’ policies.

Operational essentials for long stays

• Local manager: Hire a bilingual property manager for keys, cleaning, and emergency contacts. Expect 8–15% of rental revenue as management fee. Ask prospective managers how they handle bookings and calendar sync — integrating systems well matters (CRM & calendar integration).
• Utilities & subscriptions: Set up e‑billing, grocery delivery accounts and a local SIM with roaming packages.
• Insurance: Combine owner occupancy and landlord insurance if you plan mixed use. Ask about terrorism, storm and pandemic extensions if relevant.
• Community integration: Join local expat or neighbourhood groups ahead of moving—this speeds up getting services, tradespeople and social connections.

2026 trends that affect value and lifestyle

Plan with these near‑term trends in mind—each can affect resale, yield and enjoyment.

• Remote work normalization: More European regional towns now market themselves as remote‑work hubs. Expect steady demand for long‑stay rentals and co‑working partnerships; pack smart for travel between properties (Weekend Tote & packing hacks).
• Regulatory tightening continues: Since 2023 many municipalities introduced caps or licensing for short‑term lets; in 2026 enforcement is stronger. Prioritise legal compliance to avoid fines or de‑licensing.
• Energy efficiency premium: Buyers increasingly pay a premium for low‑energy homes. Solar, heat pumps and insulation can boost both resale price and annual yield.
• Travel tech & distribution: AI‑powered pricing and distribution tools now accessible to small owners—use them to optimize occupancy across long‑stay booking platforms.
• Climate resilience: Coastal and low‑lying properties face insurance volatility; consider elevation, flood defenses and long‑term sea‑level projections.

Real examples: How to model ROI for a $1.8M purchase

Use this simple model to estimate a blended return if you plan to split personal use with holiday rentals.

1. Estimate gross annual rental income: coastal villa €55–90k, city centre apartment €45–70k, country villa €40–65k (varies by market).
2. Subtract operating costs (management, utilities during guest stays, insurance): typically 25–35% of gross.
3. Account for vacancy: set conservative 30% for seasonal hotspots, 15% for cities with year‑round demand.
4. Net yield = (gross income × (1‑operating% ) × (1‑vacancy%)) / purchase price. Many regional buys yield 2–4% net; well‑managed properties in Portugal or Spain can push toward 4–5% in strong seasons.

Quick decision guide: choose by lifestyle, not price alone

• Choose Sète/ Montpellier if: you want a perfect blend of French coastal life, fast rail to major cities and strong cultural scenes. Great for short commutes to bigger cities and authentic local markets.
• Choose Portugal if: you need better winter climate, strong expat services and competitive villa square footage for your money.
• Choose Spain if: you prioritise Mediterranean cuisine, transport links and a mix of city and coast living.
• Choose Italy (Puglia/Umbria) if: you seek secluded charm, agritourism income and a slower lifestyle with event rental potential.
• Choose Croatia or Greece if: you want unbeatable seaside character and larger outdoor spaces, with more seasonal income variability.

Actionable next steps before you commit

1. Shortlist 3 properties in 2 different countries and book live or virtual viewings with local agents who specialise in expat buyers.
2. Order a local title search, EPC/energy report and a climate‑risk assessment. Get cost estimates for any upgrades to reach EPC B/C (where relevant).
3. Speak to a tax advisor about residency thresholds and double‑taxation for your home country vs EU country—rules changed in late‑2025 for several popular relocation destinations.
4. Contact 2 property managers and ask for sample P&Ls showing best and worst‑case rental splits for the next 12 months.
5. Factor a rounding budget of 5–10% of purchase price for immediate works, legal fees, agent commissions and initial furnishing for rentals.

Final takeaways

• Lifestyle fit beats square footage: $1.8M buys a lot in regional Europe—priority should be daily life and connectivity, not only size.
• Regulation and energy upgrades matter more than ever: 2024–25 policy shifts mean local compliance and efficiency improvements protect value in 2026.
• Model multiple scenarios: Buy with a blended plan—personal use, long‑stay rentals and potential resale—and you’ll reduce risk.

Call to action

Ready to turn scouting into a plan? Download our free “European Long‑Stay Property Checklist 2026” or join a live webinar where we compare current listings in Sète, Montpellier, the Algarve and Puglia with real P&Ls. Click through to matka.life to reserve your spot—spaces are limited and our 2026 market briefing fills fast.