Faro in Portugal, with a daily cost of £22.82, and Antalya in Turkey, at £23.11 per day, are the second and third cheapest respectively. Paphos in Cyprus, costing £24.30 per day, and Seville in southern Spain, at a mere £25.39, complete the top five.
Alicante (£25.41) and Valencia (£25.42) in Spain also rank among the most affordable destinations for car hire, along with Larnaca in Cyprus (£25.92). Rounding off the top 10 are Malaga in Spain (£25.98) and Lisbon in Portugal (£25.99).
These figures were gathered by Skyscanner, using data from its car rental service across numerous European and global destinations.
Laura Lindsay, Skyscanner's travel trends and destinations expert, commented: "Hiring a car lets you get out and about to enjoy parts of your trip you might otherwise miss."
"From stunning coastal scenery to getting up close and personal with a city, there are so many benefits to getting behind the wheel and exploring."
Calls to make £2 bus fare cap permanent as thousands of fares slashed from today"Hiring a car can be an extremely affordable way to get around while on holiday, if travellers know the tips and hacks for shopping around and comparing their options."
For those seeking the best value car hire, Albania has seen the largest price drop year-on-year, down 34%. Italy also offers cheaper car hire fees, 26% lower than last year, while France (down 16%) and Austria (down 15%) also provide good value for drivers.
A recent study has revealed that 12% of holidaymakers leave it until the last minute to book their hire car, either the day before or on the day of travel.
However, data from Skyscanner suggests that those planning to rent a car in Spain or Italy should book a week in advance, while those heading to France should secure their vehicle two weeks prior to travel for the best deals.
The survey, conducted by OnePoll and involving 2,000 drivers, also identified France (27%), Spain (21%) and Ireland (13%) as the most popular foreign countries to drive in.
The top benefits of driving abroad were found to be the opportunity to see sights otherwise missed (39%), a sense of freedom (37%) and experiencing unique scenery (34%). Additionally, 43% of respondents liked that driving made it easier to get around.
However, the challenges of different traffic rules (44%) and driving on the opposite side of the road (43%) were cited as the main deterrents to getting behind the wheel while on holiday.
A spokesperson for Skyscanner commented: "While it might be daunting driving on the opposite side of the road, or getting to grips with foreign road signs, people soon get used to it and enjoy the experience."
"As our research shows, there's a whole host of situations where you can benefit from getting behind the wheel. Gone is the need to wait ages for unreliable public transport - get behind the wheel and enjoy the holiday you want, where you want."
TOP 10 CHEAPEST PLACES TO HIRE A CAR IN EUROPE.
Europe's worst pickpocketing hotspot named as street in Spain loved by tourists- Valetta, Malta - £20.68.
- Faro, Portugal - £22.82.
- Antalya, Turkey - £23.11.
- Paphos, Cyprus - £24.30.
- Seville, Spain - £25.39.
- Alicante, Spain - £25.41.
- Valencia, Spain - £25.42.
- Larnaca, Cyprus - £25.96.
- Malaga, Spain - £25.98.
- Lisbon, Portugal - £25.99.