Did You Know That the Most Profitable Airbnb City Is Barcelona?

Did You Know That the Most Profitable Airbnb City Is Barcelona?

From rags-to-riches

Some time has passed when Airbnb was calling itself a startup, offering airbeds and competing with couchsurfer.com, while today it’s value is estimated at $30 billion. The reasons behind Airbnb’s phenomenal business jump are due to several intertwining factors from co-creating the new shared service economy to utilizing their global SEO strategy to it’s fullest potential. A key player in the company’s expansion is certainly the spreading out of its services to all kinds-of property: private apartments, houses, manors, tree houses, boats and even castles.

Cities with the biggest return on investment

Airbnb has created a startup support system with companies like Airdna, Guesty and BeyondPricing which help hosts to improve services and expand their business and guests to share their experiences and compare offers.

With the help of data from Airdna, GFluence created a table of 25 cities from around the world ranking them by return on investment (ROI) when renting property on Airbnb. Aridna is able to recognize high yielding real estate investment opportunities by analyzing the occupancy, nightly rate, and revenue.

airbnb most profitable cities

Source: GFluence, based on data from Airdna.co

Methodology: Among the cities with the highest number of available listings around the world we chose the above 25 cities. With the help of Numbeo we calculated the average monthly rent for 1-bedroom apartments. ROI was calculated comparing the highest 10% revenue generating 1-bedroom apartments in every city with the average 1-bedroom apartment rent price.

Regulation’s impact on Airbnb rentals’ ROI

Currently the leading city is Barcelona having a 278% ROI. The profitability of the average rental depends a lot on the number of Airbnb rentals in a city. Bigger competition does not necessarily mean lower prices, especially not in the real-estate sector. Sooner or later hosts start to set prices on similar levels.

At the same time there is a connection between regulation laws and the number of Airbnb listings. The better the regulation the more listings a city has. This way people get encouraged to become Airbnb hosts as business is more legalized, while before some were reluctant to make money in a legal grey-zone.

Expanding your brand overseas is not an easy task. That is why it is always good to work with people who know how to approach international market. At GFluence we help various businesses with executing their international SEO strategy to its fullest potential. Check full spectrum of services that we can provide for your brand.

Feature image source: www.techcrunch.com

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Polona Golob

Polona Golob

Enjoys a good crossword puzzle and matching keywords is her favorite.

Entries by Polona Golob