7 years ago, AirBnB still only offered air mattresses and shared spaces to its users and competed with couchsurfer.com. Since then, the company recently valued at $30 billion, has expanded to a variety of properties, including entire homes and apartments, private rooms, castles, boats, mansions, treehouses, teepees, igloos, private islands and more. other properties, and currently offers 2.3 million listings on the platform. As a result, Airbnb has become a leading channel for many real estate investors, with most renting and subletting millions of properties.
As regulations tighten in New York and other cities in the United States, we wanted to check which are the best cities to operate as an investor in the world.
The research was done using data on Airdna, a data company that tracks the performance of Airbnb rental properties around the world. By analyzing occupancy, nightly rate and revenue generated from over four million short-term rentals, Airdna is able to identify high-yield property investment opportunities.
| City | Average monthly rent 1 bed | Average income | 10% highest annual income | Average daily rate | Average occupancy | 10% highest return on investment | |
| 1 | Barcelona | $787 | $24,602 | $35,732 | $112 | 71% | 278% |
| 2 | prague | $592 | $14,562 | $23,772 | $67 | 68% | 235% |
| 3 | Montreal | $719 | $16,905 | $26,429 | $86 | 66% | 206% |
| 4 | Osaka | $732 | $16,651 | $26,764 | $73 | 70% | 205% |
| 5 | Los Angeles | $1,482 | $34,861 | $53,826 | $144 | 76% | 203% |
| 6 | Berlin | $762 | $17,864 | $27,231 | $84 | 70% | 198% |
| 7 | The cap | $637 | $12,885 | $22,087 | $72 | 64% | 189% |
| 8 | Lisbon | $645 | $15,286 | $21,863 | $69 | 70% | 182% |
| 9 | Paris | $1,185 | $23,570 | $38,716 | $117 | 66% | 172% |
| ten | Rio de Janeiro | $673 | $13,904 | $21,708 | $83 | 58% | 169% |
| 11 | Madrid | $831 | $18,017 | $26,720 | $81 | 71% | 168% |
| 12 | Rome | $1,055 | $20,976 | $33,006 | $101 | 67% | 161% |
| 13 | Toronto | $1,164 | $23,341 | $35,115 | $104 | 74% | 151% |
| 14 | melbourne | $1,240 | $25,273 | $36,093 | $109 | 75% | 143% |
| 15 | Sao Paulo | $601 | $11,046 | $16,901 | $55 | 67% | 134% |
| 16 | Milano | $1,021 | $17,954 | $28,153 | $94 | 65% | 130% |
| 17 | Istanbul | $513 | $8,218 | $14,139 | $49 | 55% | 130% |
| 18 | London | $2,083 | $36,115 | $56,381 | $163 | 71% | 126% |
| 19 | Copenhagen | $1,322 | $21,615 | $34,923 | $123 | 62% | 120% |
| 20 | Seoul | $969 | $16,164 | $24,657 | $67 | 74% | 112% |
| 21 | Tokyo | $1,243 | $20,705 | $31,535 | $87 | 73% | 111% |
| 22 | Tel Aviv | $1,129 | $19,127 | $28,314 | $97 | 65% | 109% |
| 23 | New York | $2,915 | $39,434 | $62,381 | $176 | 72% | 78% |
| 24 | sydney | $1,940 | $27,375 | $41,183 | $124 | 73% | 77% |
| 25 | Shanghai | $1,483 | $14,690 | $23,107 | $72 | 68% | 30% |
Airbnb has created an ecosystem of startups, like Airdna, Guest and Beyond pricing seeking to capitalize on the company’s success by providing services to hosts and guests, both of which are increasingly sophisticated in how they manage their rentals and what they expect from a stay.
Barcelona currently top the list with an ROI of 278%, however, regulations may be the reason for such excellent returns. According to Scott Shatford, CEO of Airdna “There is a direct correlation between the number of Airbnb rentals in a city and the profitability of the average rental. Airbnb hosts are quickly expanding into managing multiple units after seeing early success with a single unit. Airbnb rentals are most profitable in highly regulated cities. The lack of accommodation supply allows Airbnb hosts to charge rates equal to or even higher than hotels.”
Methodology: The research was carried out among 25 cities with the highest number of ads available in the world. The average one-bedroom apartments were calculated using Numbeo. Return on investment was calculated by comparing the top 10% of one-bedroom apartments in each city with the average rental price for a one-bedroom apartment.
Comments are closed.