3 of the most profitable cities for Airbnb hosting
The growth of Airbnb shows no signs of slowing, with the home-sharing platform reporting more than 100 million bookings during the first quarter of 2022 alone. In just 14 years it has become a company with a net worth of more than $60 billion, with over four million hosts worldwide.
For property owners, Airbnb hosting doesn’t just represent a chance to make some money on the side, but can even be a business venture in its own right. And while the average US Airbnb host earns $13,800 per year, they could maximize this by buying property in a location with higher profit margins.
Here we’ve outlined three of the world’s most profitable cities for Airbnb hosting to help hosts get more out of the platform.
Dubai is officially the world’s most profitable Airbnb city, with properties near the Burj Khalifa charging an average of $1,150 a night. This translates to earnings of $419,750 a year, meaning property owners can break even on their investments in as little as four months.
The UAE is the world’s third-richest country in terms of GDP per capita and cities like Dubai and Abu Dhabi have a reputation for being playgrounds for the rich and famous. Visitors often like to experience this lifestyle when they visit and are more than willing to splash out large sums on accommodation in its trendy neighborhoods.
It’s clear that Dubai property owners have it good, and this is enhanced by the abundance of Airbnb management companies in the city that can help them manage their listings. For example, Frank Porter can take care of all aspects of listing, hosting and maintenance, as well as 24/7 guest management. This kind of service is useful for busy professionals in particular, whose demanding schedules leave little time for managing these tasks themselves. It also means you don’t necessarily have to be local to manage Airbnb property in Dubai.
- New York
With New York Airbnb hosts taking in $3,820 a month on average eon rental income, the city is a lot more profitable than the US as a whole on average. Seeing as the Big Apple is one of the most popular tourist destinations on the planet, as well as a global business hub, this is to be expected.
By becoming one of the estimated 10,000 to 20,000 Airbnb property owners in New York, you could stand to make significant gains, particularly in regions like Brooklyn, Manhattan and the Bronx.
Like Dubai, there are numerous New York Airbnb management companies that can help you with this if you’re pressed for time. These include Makomi, which can manage the entire cycle of the property rental, HelloMyHost, which offers PackSilver and PackGold management packages for extra flexibility, and Cityami, which claims its services can boost your rental earnings by 25% to 50%.
Rounding off our list is London. Bursting with history and iconic landmarks, the UK capital is the world’s third most-visited city behind Bangkok and Paris, while also being the globe’s second-largest financial hub behind New York. This makes it another obvious choice for Airbnb property owners to set up shop, with plenty of demand for such stays.
The city’s roughly 37,000 rental owners make $2,711 a month in revenue on average, with regions like Bromley, Greenwich and Enfield particularly profitable.
Again, if you’re looking for an Airbnb management company to assist you then you’re spoilt for choice in London. From City Relay, which provides real-time visibility into your property portfolio, to Guest Ready, which has 50-plus years of experience in the field of hospitality, you’re sure to find a company that suits your needs.