Many places in the Old World attract tourists. Ancient towns with narrow streets, cathedrals, and palaces. Ancient castles with their grandeur and power. Magical nature: from hot Spain with its palm trees and azure beaches to the rugged fjords of Norway. That is why the resort towns of Europe attract millions of tourists – both internally and from other continents. It makes the region attractive for the real estate rental business.
And if you’ve decided to start your own vacation rental business, you’ll probably be interested to know which European cities are best suited for an Airbnb business. We’ll talk about it below. And to study the issue in as much detail as possible, we suggest reading the articles from the Airbnb blog — https://www.hostyapp.com/blog/.
The most critical metrics for buying Airbnb property
Before you buy a property for rent, you need to ask what is the peculiarity of your chosen location. What resorts are nearby? Are there memorials of historical value? Places for active recreation? Sea, ocean, or other recreational areas? Answering these questions will help you make your investments wisely and build a profitable business.
The level of competition in the area should also be assessed. Pay particular attention to:
- Average Daily Rate. This indicator shows the average price of real estate in a given location. Pay attention to the difference between the minimum and maximum rental prices and the average rental price in your segment (house with one or two bedrooms, hotel room, etc.)
- Occupation. It demonstrates the demand for housing among tourists in this region. It is essential to take into account the occupancy not only throughout the year but also in each season.
- RateRevenue. Shows the average income from renting a property per year. Here it is also essential to consider what type of housing you will rent out.
- Active Rentals. Indicates how many properties are rented out in a given region. It will help you evaluate the level of competition with other hosts and build your business strategy on this.
Also, when building a strategy for your Airbnb business, you need to evaluate the portrait of your target audience. Who most often comes to the city of your choice? Families with children, couples in love, eco-tourists, fans of extreme sports? Much will depend on this. For example, children will need a separately equipped room. Couples will appreciate the cozy romantic interior and privacy. And the ecotourist will be happy with the beautiful view from the window and the nearby forest.
Top European Cities to Buy Airbnb Property
There are many exciting cities in Europe, but we have tried highlighting the most attractive ones for the Airbnb business.
More information can be found in this article.
This Swiss city is one of the best European ski resorts. In winter, people come here to ski and snowboard, and in summer, when the snow melts, mountain biking enthusiasts flock to Zermatt. Beautiful nature and classic Swedish architecture make this place genuinely fabulous. And very popular with tourists.
- Average Daily Rate (ADR): $281
- Occupancy Rate(OR): 65%
- Revenue: $3,862
- Active Rentals: 7,687
The most popular apartments are 1-bedroom or 2-bedroom apartments. Self-catering houses are trendy, but there are practically no hotels with parking.
This picturesque peninsula on the Cote d’Azur, washed by the Atlantic Ocean, has been one of the most popular resorts among beach lovers for many years. There are also cultural monuments that art lovers will surely like. Moorish-style chapel, Cap-Ferret lighthouse… There is so much to see!
Many Europeans come here on holiday. It means that Lege-Cap-Ferret will be a great place to start your Airbnb business.
- ADR: $290
- OR: 62%
- Revenue: $2,860
- Active Rentals: 1,825
Mostly families with children and large companies come to the Cote d’Azur. Therefore, houses with three and even four bedrooms are in the most significant demand. Most homes have a parking space, but there are not so many air-conditioned apartments. So having an air conditioner can be your advantage over your competitors.
Bagnes is a place of true northern beauty. High rocky mountains, lakes with the purest water, and untouched nature at arm’s length. This place attracts connoisseurs of active winter recreation and those who like to spend vacation close to nature.
- ADR: $339
- OR: 50%
- Revenue: $2,921
- Active Rentals: 823
Tourists on Bagnes prefer to rent a house with 2 or 3 bedrooms. Also, an important factor is the availability of a parking space and independent heating. But hot tubs are rare here.
Sant Josep de sa Talaia
It is truly a heavenly place on the west coast of Ibiza. Untouched nature coexists here with the benefits of civilization – the airport is only 10 km from the village. Deserted sandy coves, trendy restaurants and nightclubs, cozy houses, and pine-covered mountains – this place has a vacation for every taste. Ibiza is one of the most modern resorts in Europe so you won’t be short of clients.
- ADR: $€500
- OR: 73%
- Revenue: $6,140
- Active Rentals: 1721
Most houses for rent have five or more rooms. It is explained simply: people often come here to relax in large companies to hang out surrounded by friends properly. So it is better if you have a spacious house in your ownership. In the first stages, quite a lot of financing will be needed, but it will pay off.
Cruchavel is the first resort that comes to mind regarding skiing locations in France. It is here that the town of Saint-Bon-Tarentaise is located. Most tourists come here in winter, but in summer, the stunning nature of Courchevel makes these places popular among mountain lovers.
- Average Daily Rate (ADR): $268
- Occupancy Rate(OR): 50%
- Revenue: $2,861
- Active Rentals: 755
Almost all of the properties featured here are one or two-bedroom homes rented out. Most owners (55%) rent their property on Airbnb. Many houses have a parking space, heating, and internet.
If you decide to open your business on Airbnb, property in these European cities is a good purchase. It is only important that the property owner thinks through all the details and takes into account the peculiarities of the location, the needs of his target audience, and the level of competition. You should also evaluate the pricing policy for short-term rental of real estate in the region, the average occupancy of apartments, and the average annual income. It will help you carefully plan your business strategy. So choose the right house for sale, and let’s get started!