If you’re thinking of ways to make money from property investment, buying a holiday home abroad might be on your radar.
But to ensure a good return on investment, it is crucial to buy from the right place.
A new study by your insurer online CIA Owner’s Insurance calculated which cities are the most profitable for landlords, based on how long it would take to recoup the purchase price of the property and how much could be earned from vacation rentals through Airbnb.
Its findings reveal the top 10 places in town where a landlord can make the most money each month by renting a vacation home.
Let’s find out more.
Popular destinations for vacation homes worldwide
The study involved research to find the best cities in the world to buy for returning vacation home rentals. CIA Landlord Insurance analyzed 50 cities and compared them in terms of tourist popularity, house prices per m2 and various other criteria. All cities analyzed had good tourist facilities and attractions.
The most profitable city in the world to buy a holiday home rental is Las Vegas, where potentially a homeowner can earn £17,000 a month renting it out on Airbnb. With the average price of a 2-bedroom house being £16,888, an investment will on average only take a month to pay off.
Still, overall, Istanbul is the best city in the world to buy a vacation rental, taking into account several factors such as average temperatures, hours of sunshine, nightlife, and growth forecasts. investment: 10-year projections show that properties in Turkey will acquire more value than in other countries. Dubai, Miami and Dublin are other popular destinations for buying a vacation rental.
The least attractive city for holiday home owners to buy property in is Hong Kong, where the investment would take almost 23 years to pay off due to the high purchase cost.
The most profitable Airbnb cities in the world
| Position | Town | Country | Average monthly price for 2-bed Airbnb | Purchase price of the house per m2 | Average price of a 2 bedroom house (74.32 m2) |
| 1 | Vegas | United States | £16,920 | £227.24 | £16,888.48 |
| 2 | Los Angeles | United States | £15,806 | £770.69 | £57,277.68 |
| 3 | dubai | United Arab Emirates | £15,587 | £312.75 | £23,243.58 |
| 4 | Miami | United States | £10,021 | £559.37 | £41,572.38 |
| 5 | Shenzhen | China | £8,715 | £1,405.57 | £104,461.96 |
| 6 | New York | United States | £8,007 | €1,210.41 | £89,957.67 |
| seven | Dublin | Ireland | £7,662 | £581.2 | £43,194.78 |
| 8 | phuket | Thailand | £7,276 | £218.92 | £16,270.13 |
| 9 | Paris | France | £7,325 | £995.79 | £74,007.11 |
| ten | London | UK | £11,397 | £12,212.13 | £907,605.50 |
While Las Vegas tops the chart, it is one of four US cities in the top ten. In Las Vegas, vacation home owners can earn an average of £16,920 a month from Airbnb vacation rentals, research shows. A two-bedroom property can be bought for £16,888, meaning the investment could pay for itself in just a month.
London takes 10e Location: Airbnb vacation rental income here averages £11,397 per month, however, a two-bedroom house costs an average of £907,605, making London the most expensive place in the top 10 for buy property. It would take more than 6.5 years for the investment to bear fruit.
The least profitable places to buy a vacation home
| Position | Town | Country | Average monthly price for 2-bed Airbnb | Purchase price of the house per m2 | Average price of a 3P (74.32m2) | Number of months to pay off a 2 bedroom house |
| 1 | hong kong | China | £7,660 | £28,281.87 | £2,101,908.58 | 274.40 |
| 2 | Agra | India | £702 | €1,189.44 | £88,399.18 | 125.92 |
| 3 | Singapore | Singapore | £1,693 | €1,669.41 | £124,070.55 | 73.28 |
| 4 | Johor Bahru | Malaysia | £1,595 | €1,257.86 | £93,484.16 | 58.61 |
| 5 | Venice | Italy | £4,528 | £3,680.93 | £273,566.72 | 60.42 |
At the other extreme, the study found that an investor buying and renting a property in Hong Kong could wait up to 23 years to repay the purchase price, based on the average monthly income from a property. Two bedroom Airbnb being £7,660. and the average purchase price of £2,101,908.
The best city to buy and rent a vacation home overall
| Position | Town | Country | Tourist arrivals 2019 | Average monthly price for 2-bed Airbnb | Sunshine hours | Mean temperature | Number of restaurants | Number of bars | Purchase price of the house per m2 | Expected evolution of house prices over 1 year | Expected evolution of house prices over 5 years | Expected evolution of house prices over 10 years | Utility costs |
| 1 | Istanbul | Turkey | 14715.9 | £3,053 | 6.08 | 11.10 | 15205 | 438 | £195.67 | 160.57% | 368.35% | 758.40% | £195.67 |
| 2 | Antalya | Turkey | 13332.1 | £2,973 | n / A | 11.10 | 1555 | 51 | £962.54 | 160.75% | 368.35% | 758.40% | £62.15 |
| 3 | Riyadh | Saudi Arabia | 5451.9 | £6,014 | 8.84 | 24.65 | 1367 | 1 | €139.92 | n / A | n / A | n / A | €139.92 |
| 4 | dubai | United Arab Emirates | 16328.3 | £15,587 | 9.61 | 27:00 | 12248 | 89 | £312.75 | n / A | n / A | n / A | £312.75 |
| 5 | Tokyo | Japan | 10443.1 | £3,874 | 5.14 | 11:15 a.m. | 102299 | 1000 | £702.30 | 12.76% | 35.05% | 77.53% | £702.30 |
According to this table, Istanbul is the best overall holiday rental option, with property prices averaging £195.67 per square meter and the potential to earn £3,053 per month from a two-bedroom property. rooms with Airbnb. Istanbul is an extremely popular tourist destination and property prices across Turkey are expected to rise by 161% in just one year and by 758% over the next ten years.
Focus on tourist hotspots
The data from the study clearly shows that popular destinations for tourists are the best cities to buy a vacation rental, where Airbnb revenues far exceed property prices. If you are considering investing in vacation rentals, remember that when looking for vacation inspiration, people are looking for sea view properties, they want to be able to book direct and easily find the best deals.
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