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Iceland, Ireland and Netherlands top best places to invest in an Airbnb

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With the number of Airbnb bookings increasing by 31% worldwide in 2022, landlords could make significant profits by listing their rental properties on the platform. But, are some cities better than others when it comes to investing in an Airbnb?

To determine where is best to invest in Airbnbs, and any potential gaps in the market, CIA Landlords Insurance created a seedlist of the capital cities of 45 OECD countries, ranking them based on the following metrics:

Airbnb

CIA Landlords Insurance has analysed the capital cities of 45 OECD countries, ranking them based on factors such as the quarterly growth of Airbnb in the area, the average daily rate, monthly revenue, and yearly occupancy of Airbnbs in the city, and the price to buy property in each location.

The study has also taken into account the number of one, two, and three bedroom properties in each city to determine if there are any gaps in the market for landlords looking to buy-to-rent.

Reykjavik is the best destination to invest in an Airbnb, with average monthly revenues around £2,404

Topping the list as the best destination to invest in an Airbnb is Iceland’s capital Reykjavik. Airbnb has seen a 31% increase in rental properties in the city, and occupancy rates of Airbnbs are also relatively high, at 77% across the whole year. Landlords may also be able to make significant profits in Reykjavik, as average daily rates for Airbnbs are around £165, and monthly revenues average £2,404. In terms of a gap in the market, the city currently has a lot less three-bed properties (365) available to rent on Airbnb, compared with one-bed properties (995).

In second place is Dublin. The Irish city sees even higher Airbnb occupancy rates than in Reykjavik, at 81% throughout the year. Airbnb owners also tend to make more revenue on a monthly basis, with averages around £2,544. It is more expensive to purchase property in Dublin though, with an apartment in the city centre averaging £5,985 per square metre, compared with £4,832 in Reykjavik.

Boasting the highest average Airbnb daily rate of £206, Amsterdam, The Netherlands is in third place. The city has one of the highest occupancy rates, at 90% throughout the year, but is the most expensive place to buy property out of the whole of the top five, with an apartment in the city centre averaging around £6,322.

Rank

City

Country

Quarterly Growth

Average daily rate

Occupancy rates

Monthly revenue

No. of 1-bed properties

No. of 2-bed properties

No. of 3-bed properties

Price of apartment in city centre (per sq m)

1

Reykjavik

Iceland

31.00%

£165

77.00%

£2,404

995

730

365

£4,832

2

Dublin

Ireland

22.00%

£181

81.00%

£2,544

992

792

284

£5,985

3

Amsterdam

Netherlands

8.00%

£206

90.00%

£2,445

1,704

912

293

£6,322

4

Edinburgh

United Kingdom

11.00%

£151

84.00%

£2,727

1,968

2,151

888

£5,049

5

Belfast

United Kingdom

19.00%

£127

67.00%

£1,843

287

561

213

£2,911

Airbnb

Warsaw is the worst city in the world for those looking to rent their property on Airbnb, with an average daily rate of just £56

Warsaw, Poland has been revealed as the worst destination to invest in an Airbnb. Average daily Airbnb rates are the lowest here than in any other city analysed, at £56, and monthly revenue is also very low in the city, averaging around £846. Warsaw currently has 12,384 two-beds, and 4,375 three-beds available on Airbnb, which is the most of any other city, meaning landlords may find less demand here for their holiday rental property.

In second place is San Jose, Costa Rica. The city has an even cheaper daily rate than Warsaw, at £47, and landlords only stand to make around £523 per month on average. Airbnbs in the city also tend to be full for only half of the year, with a 52% occupancy rate, and it’s also one of the most expensive places to buy property, with an apartment in the city centre averaging £11,245 per square metre.

With the cheapest Airbnb daily rate of all cities analysed, at £28, Bogota is in third place. Airbnb owners tend to make an average of only £291 in revenue every month, and there isn’t a large gap in the market for Airbnbs in the Colombian capital either, particularly for one-beds, as there is already a huge 5,834 in the city.

Rank

City

Country

Quarterly Growth

Average daily rate

Occupancy rates

Monthly revenue

No. of 1-bed properties

No. of 2-bed properties

No. of 3-bed properties

Price of apartment in city centre (per sq m)

1

Warsaw

Poland

13.00%

£56

70.00%

£846

4,419

12,384

4,375

£3,951

2

San Jose

Costa Rica

5.00%

£47

52.00%

£523

780

1,952

1,059

£11,245

3

Bogota

Colombia

4.00%

£28

52.00%

£291

5,834

2,353

1,017

£1,306

4

Mexico City

Mexico

2.00%

£56

67.00%

£731

6,498

5,677

1,596

£2,384

5

Ankara

Turkey

-2.00%

£32

30.00%

£195

737

310

116

£794

Airbnb

Expert reveals top tips for how to make your property stand out on Airbnb

Richard Wayman, Finance Director at CIA Landlord Insurance says, “Before investing in any property, it’s important to look for a gap in the market. You don’t want to spend significant funds on a buy-to-let, only to find that you aren’t able to rent it out because of limited demand, so doing your research ahead of time is incredibly important.

“Once you have a property, making sure it attracts potential renters is key, especially on popular platforms like Airbnb. There are a few simple steps owners can take to make their property stand out, such as creating an attractive listing, using great photos, and ensuring their property is priced correctly.

“People also love a personalised experience, so if you can, offering more than just a welcome note can go a long way. If guests feel like they’ve had an unforgettable experience, this can lead to some great reviews, and even more bookings in the long-term.”

CIA Landlord Insurance is one of the top online insurance providers in the UK providing landlords with insurance policies to fit their needs. CIA Landlords pride themselves on delivering unrivalled customer service thanks to the dedication of their experienced and knowledgeable staff. They believe there are suitable products to suit any landlord’s needs.

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