- Best locations for Airbnb offer high demand from travellers seeking Airbnb’s unique experiences. This ensures great occupancy rates and pricing flexibility.
- Airbnb's expansion globally unlocks new markets, enabling hosts to reach untapped customers.
- When searching for the best locations for Airbnb, clear local regulations bring confidence to Airbnb hosts, ensuring smooth operations.
It is no surprise that the vacation rental scene has exploded globally in recent years with new shifts. As the travel game evolves, so do the dreams of adventure seekers.
Travellers now seek more personalised accommodation experiences, and Airbnb has emerged as the superstar for those in search of unique digs. That’s got savvy investors eyeing promising Airbnb hotspots.
Thinking of buying a short-term rental property? You’ll want the lowdown on the hottest Airbnb markets with stellar income potential.
From the key factors that make a city a popular Airbnb location to the future outlook of Airbnb, here are the 10 best locations for Airbnb with impressive rental returns!
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Is Airbnb Still Profitable in 2023?
The answer is yes! Airbnb and the whole short-term rental game, especially in the best locations for Airbnb, are still goldmines. Well, even if the real estate market cools off a bit, vacation rentals will stay hot and in demand, especially in prime locations.
Take an idea from these factors:
From traveller’s side, Airbnb is wildly popular thanks to its stunning listings, seamless platform and user reviews.
When people compare Airbnb to hotels, a recent survey showed that 82% of travelers who’ve experienced both prefer Airbnb for amenities and unique experiences. That’s a strong vote in Airbnb’s appeal.
A whopping number of homeowners share your enthusiasm for making money by renting out their place. And here’s the kicker – 54% of them are gazing at vacation rental apps with eager eyes.
It’s clear that host family is on the rise, especially in the best locations for Airbnb. So, if you’re truly keen on Airbnb investments, the time to seize the moment is now!
What Makes a City a Best Location for Airbnb?
These can be quite diverse, often depending on the personal preferences and goals of individual investors. Here are some common elements that make a city the best location to own an Airbnb.
1. Strong Demand, High Occupancy and Rental Income
Investors favor cities with consistent short-term rental demand driven by tourism, business activities, events, and a robust local economy, resulting in high year-round occupancy rates.
2. Tourist Allure
Cities with popular attractions, cultural sites, and a vibrant local scene experience higher short-term rental demand. Proximity to beaches, parks, museums, and shopping districts adds to their appeal.
3. Clear Legal Environment
Cities with transparent, investor-friendly regulations attract investors. Understanding local laws governing short-term rentals is essential to ensure compliance and avoid legal issues.
4. Infrastructure and Accessibility
Cities with excellent transportation systems, airports, and accessibility appeal to tourists. Convenient airport access, major highways, and efficient public transport make travel easy.
5. Airbnb-Friendly Environment
Some cities have a more welcoming culture for Airbnb rentals. The supportive policies, community support, and available property management services, create a welcoming atmosphere for hosts.
Where is the Best Location to Own an Airbnb?
When investing in an Airbnb property, selecting a tourist-friendly location is key. This ensures your Airbnb receives frequent bookings and generates a steady income.
While popularity may shift annually, some destinations consistently top travellers’ lists.
Here are some of the best locations for Airbnb in the world with impressive returns!
1. Maui, Hawaii
Maui, the second-largest Hawaiian island, is an idyllic vacation destination, offering a tranquil escape from the urban bustle. Maui’s fame rests on its pristine beaches and mesmerizing sunsets.
For Airbnb investors eyeing international real estate, Maui is a compelling choice. With Hawaii boasting the lowest tax rate in the United States, Maui sets a new benchmark with a mere 0.19% tax rate.
This, combined with an average annual rental income of $102,000 and a daily rate of $375, makes Maui an irresistible option for Airbnb investors.
2. Paris, France
Paris opens its arms to Airbnb enthusiasts with a splendid array of accommodations. This city captivates millions of travellers in search of a romantic escape or authentic journey.
For savvy Airbnb hosts in Paris, the potential is nothing short of exceptional. Annual earnings can reach an impressive €42,295, supported by a remarkable average occupancy rate of 93%.
Whether it’s the enchanting apartment with an Eiffel Tower backdrop or a chic loft in trendy Montmartre, “The City of Love” shines as one of the best locations for Airbnb.
3. Barcelona, Spain
Barcelona, renowned for its captivating blend of history and modernity, is a leading choice for Airbnb investors. Its rich cultural scene, stunning architecture, bustling streets, and beautiful beaches have made it one of the best locations for Airbnb.
Visitors can choose from an array of unique accommodations, spanning traditional Catalan apartments to modern penthouses with Mediterranean Sea views.
Investing in Barcelona’s short-term rental market promises exciting returns. A 2-bedroom apartment can command a nightly rate of €190, enjoying a steady occupancy rate of 91%. This translates into a projected annual revenue of €72,147, making this city an attractive destination.
4. Bali, Indonesia
Bali, the epitome of natural beauty and tranquility, stands out as one of the best locations for Airbnb. Its breathtaking landscapes, pristine beaches, and serene temples have made it a sought-after investment destination.
Here, visitors have the privilege of choosing beautiful villas in the lush rice terraces, beachfront bungalows, or jungle retreats.
Short-term rentals in popular areas such as Seminyak, Canggu and Ubud enjoy an impressive average occupancy rate of 73%. The daily rate averages $165, contributing to monthly revenue of $2,241.
5. Tokyo, Japan
Tokyo, with its fascinating blend of tradition and modernity, emerges as an enticing Airbnb destination. It caters to diverse tastes, offering cosy apartments in tranquil residential areas and sleek, high-rise accommodations in the city’s lively heart.
This variety provides visitors with easy access to Tokyo’s lively nightlife scene and delightful cuisine.
The city boasts an average daily rate of around $100, depending on the season and demand. Airbnb hosts in Tokyo enjoy the potential for significant profits, with an average revenue of $1,161.
6. Rio de Janeiro, Brazil
Celebrated for its vibrant carnival and breathtaking beaches, Rio de Janeiro is a global magnet for travellers and an enticing spot for Airbnb hosts.
Think about Beachfront apartments in the iconic Copacabana or hilltop retreats with sweeping city views.
The average daily rate stands around $80. People who offer short-term rentals in Rio de Janeiro can anticipate earnings of around $800 per month.
7. Sydney, Australia
Home to the famous Sydney Opera House and Bondi Beach is a magnet for travellers worldwide. It is favoured for its beautiful coastlines, vibrant city and dynamic culture.
Sydney beckons as one of the best locations for Airbnb, where you can be part of a city where icons meet cosy comfort. Airbnb options here range from modern harbor-view apartments to tranquil beachside cottages.
An average Airbnb host finds their monthly earnings soaring to A$3,374, particularly for a cosy 1-bedroom, 1-bath apartment (condo). This is made possible with an attractive average daily rate of A$267.
8. Rome, Italy
With its fascinating blend of history and modern charm, Rome has always been a favourite spot for travellers. The city offers stunning destinations, fascinating ancient culture, and of course, Italian cuisine. Those all combined, making it an attractive Airbnb spot.
From cosy apartments near the iconic Colosseum to elegant villas in the picturesque countryside, Rome has it all.
Rome is certainly a lucrative option to own an Airbnb. A 1-bedroom apartment boasts an impressive 89% average occupancy rate. This alone can generate up to €38,374 in annual earnings.
9. London, United Kingdom
The global epicenter of art, culture, and history, London ranks among the premier Airbnb destinations. Travelers can take their pick from a diverse range of accommodations. Picture the stylish apartments in trendy enclaves like Shoreditch, or cosy flats in Westminster.
With the soaring demand for lodging options, Airbnb rentals enjoy a substantial income. London boasts an average daily rate of £139 for private rooms and £92 for studio-type rooms.
The city maintains a robust occupancy rate of approximately 75%, making it an attractive opportunity for those seeking the best location to own an Airbnb.
10. Cape Town, South Africa
Cape Town unveils an awe-inspiring natural beauty and cultural diversity. Situated between the Atlantic Ocean and Table Mountain, the city promises unique natural wonders.
Within the realm of Airbnb, you’ll encounter a delightful range of accommodations. From chic city center apartments to opulent villas gracing the coastline.
Cape Town shines brightly as one of the best locations to own an Airbnb. Short-term rentals in this splendid city, enjoy an average occupancy rate of 62%, a welcoming $91 daily rate, and the potential to yield $1030 in monthly revenue.
How to Start your Airbnb Investment with Villas in Bali?
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