Introduction to Airbnb Market Analysis in Israel
Airbnb has revolutionized the way people travel and stay in different parts of the world. Israel, a country rich in cultural history, religious significance, and natural beauty, is no exception to the growing Airbnb marketplace. Recently, Tel Aviv and Jerusalem have been ranked as the 5th and 10th best cities globally for Airbnb hosts, respectively. But what makes these cities, along with others in Israel, such profitable ventures for Airbnb hosting?
In this comprehensive Airbnb market analysis, we dive deep into key performance indicators such as Average Daily Rate (ADR), Occupancy Rate, and the type of listings that are most popular in various Israeli cities—from the bustling urban vibes of Tel Aviv to the religious and historical magnet that is Jerusalem, and even the serenity offered by cities like Haifa and Eilat. We also take a look at the seasonality of bookings, competition, and market stability to give prospective hosts an all-encompassing view of what to expect.
Whether you are a new host looking to enter the market or an experienced host aiming to maximize profitability, this article provides invaluable insights tailored to help you make informed decisions. Read on to discover how to leverage local events, attractions, and market dynamics to your advantage.
Keep scrolling to learn more about what makes each city unique, the profitability metrics to consider, and the type of rentals that are most sought after. Let’s decode the Airbnb market in Israel, city by city.
Detailed Airbnb Market Analysis of Israeli Cities
Tel Aviv hosts the annual Pride Parade, which attracts hundreds of thousands of tourists. Its beaches, Bauhaus architecture, and Jaffa’s historical port are major draws. Hosts can leverage these events and sites in their listings and even consider offering guidebooks or tours.
Besides, Tel Aviv is the bustling heart of Israeli urban life, and its Airbnb market reflects this energy. With an Average Daily Rate (ADR) of $191 that shoots up to $203 in August, the city promises profitability for hosts. The Occupancy Rate of 61% is impressive, peaking at 72% in November. This suggests a nearly year-round appeal, with November being a particular favorite. With 7,947 Active Rentals, competition is stiff, but the preference for Entire Home rentals (89%) indicates that guests are looking for a private experience. The popularity of one/two-bedroom listings (76%) may cater to solo travelers, couples, or small families. With the majority adopting a flexible or moderate Cancellation Policy and a Minimum Stay of one night, Tel Aviv positions itself as both tourist and business-friendly.
The Bahá’í Gardens and World Center are UNESCO heritage sites and a top attraction in Haifa. The city also hosts the Holiday of Holidays festival, celebrating Jewish, Christian, and Muslim holidays. Hosts can highlight the proximity to these attractions and consider themed decor during festive seasons. Haifa contrasts with Tel Aviv’s vibrant scene by offering a blend of industrial charm and serene landscapes. Its ADR of $119 presents it as a more budget-friendly alternative, though August sees a spike to $130, likely due to summer vacationers. With an Occupancy Rate hovering at 55% and peaking in August, the summer months are crucial for hosts. The city has 1,067 Active Rentals, and like Tel Aviv, favors Entire Home listings (84%). The preference leans slightly more towards one/two-bedroom homes (83%), suitable for smaller groups. The city’s high percentage of flexible and moderate Cancellation Policies (70%) suggests that it’s catering to tourists who might be exploring multiple Israeli cities and need flexibility.
As Israel’s southernmost city, Eilat is a popular holiday resort location on the shores of the Red Sea. Eilat’s Underwater Observatory Marine Park and Dolphin Reef are popular attractions. Eilat also benefits from domestic tourism during the school holidays. Hosts might consider family-friendly amenities and offer local diving course partnerships. The city’s ADR of $210, which significantly jumps to $283 in August, showcases its beach city allure. The overall Occupancy Rate is at 42%, but like other cities, August is a popular month. With 1,393 Active Rentals and a strong preference for Entire Home listings (86%), privacy is critical for vacationers. The choice of one/two-bedroom homes dominates at 65%, and the city has a more balanced Cancellation Policy with 66% of listings offering flexibility.
Known as the childhood home of Jesus, Nazareth attracts Christian pilgrims, especially during Christmas. The Basilica of the Annunciation is a prime attraction. Offering pilgrimage packages or partnerships with local tour guides can be beneficial for hosts. An ADR of $140 that increases to $200 in December aligns with the Christmas pilgrimage. The low Occupancy Rate of 27% indicates that the city has room for growth in short-term rentals. With only 135 Active Rentals and a smaller percentage of Entire Home listings (39%), it differs from other cities. However, one/two-bedroom homes still remain the most popular at 70%. An incredibly flexible and moderate Cancellation Policy rate of 93% is accommodating for pilgrims and tourists.
With sites like the Western Wall, the Church of the Holy Sepulchre, and the Dome of the Rock, Jerusalem attracts millions of visitors each year. The Jerusalem Film Festival and Light Festival are also significant events. Hosts can offer specialized city tours or highlight the proximity of these famous sites. Jerusalem, another hub of religious significance, stands out with an ADR of $203, hitting a high of $219 in December. This reflects its universal appeal. Its Occupancy Rate of 61% suggests steady demand, which slightly increases in November. With 3,272 Active Rentals, the competition is evident, but the popularity of Entire Home rentals at 88% echoes the desire for private experiences. Most listings, 65%, offer one/two bedrooms, and more than half (58%) opt for a flexible or moderate Cancellation Policy.
Poleg Beach and the seasonal paragliding activities are popular. Additionally, Netanya hosts an annual Winter Sound Festival. Hosts can emphasize beach views and might consider offering beach essentials like umbrellas or beach towels. Netanya showcases an ADR of $192, peaking in August at $213. Its Occupancy Rate peaks in October, perhaps related to the holiday season. With 763 Active Rentals, there’s less competition than in larger cities, but the desire for Entire Home listings is still high at 91%. Listings with one/three bedrooms dominate, making it suitable for families. Interestingly, less than half (49%) of listings offer flexible or moderate Cancellation Policies.
The Herzliya Marina, the largest marina in Israel, often hosts boating events and competitions. Sidna Ali Mosque and Beach are also key attractions. Waterfront views and boat tour partnerships could be a unique selling point for hosts here. Herzliya flaunts a high ADR of $289, which further increases to $338 in August. The Occupancy Rate remains consistent throughout the year. With 487 Active Rentals, it’s a smaller market but has a significant 87% preference for Entire Home listings. One-bedroom apartments stand out at 34%, suggesting they’re popular among couples or solo travelers. Cancellation Policies are split down the middle, with 50% being flexible.
Bat Yam International Festival of Street Theatre & Arts draws many visitors. Proximity to Tel Aviv also benefits the tourist influx. Highlighting the ease of transit to Tel Aviv and providing information on local events can be key for listings. Bat Yam offers an ADR of $143, peaking in August at $167. Remarkably, its Occupancy Rate peaks in November at a whopping 80%. This city, with its 563 Active Rentals, also leans heavily towards Entire Home listings (86%), with a notable 49% being one-bedroom homes. Interestingly, Bat Yam has a stricter approach, with 59% of listings adhering to a strict Cancellation Policy.
The city is home to one of the world’s major diamond exchanges. Business travel is crucial here, so hosts might consider setting up work-friendly spaces in their rentals. A blend of suburban charm and business, Ramat Gan lists an ADR of $149. The peak comes in February at $167, indicating potential business-related travel. The city has a lower Occupancy Rate of 48%, but January sees a notable jump. With 241 Active Rentals, the preference for Entire Home listings is 78%. One/two bedroom homes dominate the listings. Surprisingly, a significant 74% of listings have flexible or moderate Cancellation Policies.
Its location by the Sea of Galilee makes it popular for water activities. The ancient hot springs and St. Peter’s Church are notable attractions. Hosts can promote relaxation and spa-like amenities, given the natural springs. Tiberias boasts an ADR of $202, which skyrockets in August to $264. With an Occupancy Rate of 37%, August is a crucial month for hosts. There are 418 Active Rentals, and the preference leans towards Entire Home listings (80%). One/three bedroom homes are the most popular, and Cancellation Policies tend to be flexible or moderate in 57% of listings.
Ashdod‘s modern port, parks, and beaches like Giv’at Yonah are tourist spots. The city’s annual Jazz festival is also noteworthy. A guidebook to local parks and event calendars can enhance the guest experience. A port city located midway between Tel Aviv and Gaza, Ashdod has an ADR of $215, peaking in August at $240. The Occupancy Rate is relatively low at 38%, but July and August see a spike. With 122 Active Rentals, there’s less competition, and Entire Home listings make up 77% of the market. Two-bedroom homes dominate at 58%, and the Cancellation Policy is moderate, mainly at 59%.
Ra’anana Park, the city’s largest urban park, is a draw for families. The city is also known for its high-tech business parks. Combining family-friendly amenities with workspaces can cater to a broader audience. Often called the “Pearl of the Sharon,” Ra’anana enjoys a high ADR of $240, further spiking to $266 in August. The Occupancy Rate maintains a steady average of 53%. The city has 97 Active Rentals, favoring Entire Home listings (76%). One/two-bedroom homes make up 70% of the listings. Interestingly, only 45% of listings offer flexible or moderate Cancellation Policies.
Caesarea Harbor National Park, with its ancient ruins and underwater archaeological park, is a key attraction. Given the luxury nature of the location, hosts might consider offering premium services, like private tours or personal chefs. ADR is a whopping $386, peaking at $420 in August. The Occupancy Rate remains low but sees a notable spike in August at 55%. There are only 41 Active Rentals, but Entire Home listings make up 90% of the market. Most listings are for three/four-bedroom homes, catering to a luxury market. Cancellation Policies tend to be moderate or strict, making up 61% of the listings.
Comprehensive Analysis of Airbnb Markets Across Israeli Cities
In terms of Average Daily Rate (ADR), the luxury market in Caesarea stands out with a whopping $386, peaking at $420 in August. However, it’s essential to balance this with Occupancy Rates, which remain low for Caesarea. Herzliya and Ra’anana follow closely in terms of ADR but have higher Occupancy Rates, making them potentially more profitable.
Airbnb Occupancy Rate
When it comes to Occupancy Rate, Bat Yam impressively peaks at 80% in November, closely followed by Tel Aviv and Jerusalem at around 61-72%. This could indicate a steadier income stream.
Tel Aviv presents stiff competition with 7,947 Active Rentals, while smaller markets like Caesarea and Ra’anana offer less competition but also lower occupancy.
Type of Rental
Almost all cities strongly favor Entire Home listings, making them the ideal property type for hosts. Nazareth is a notable exception, with only 39% Entire Home listings, which may indicate an untapped market or different preferences among its tourists.
Airbnb Cancellation Policies
In terms of flexibility, Nazareth and Ramat Gan have the highest percentage of flexible or moderate Cancellation Policies, making them potentially more attractive to tourists.
Cities like Herzliya and Ra’anana show consistent Occupancy Rates throughout the year, suggesting market stability, whereas cities like Eilat and Tiberias see spikes primarily in August, indicating a seasonal market.
For Maximum Profit: Caesarea is the best destination, provided you’re targeting the luxury market and can tolerate lower occupancy rates.
For Steady Income: Tel Aviv or Jerusalem offer a balance between high ADR and decent Occupancy Rates, but competition is high.
For Lower Competition: Ra’anana or Caesarea are less saturated but still profitable, though they cater to specific markets.
Seasonal Hosting: Eilat and Tiberias see peak numbers in the summer, making them ideal for hosts who aren’t looking for year-round commitment.
Untapped Markets: Nazareth, with its low number of Entire Home listings and high flexibility in Cancellation Policies, may offer untapped opportunities, particularly during the pilgrimage season.
For High Occupancy: Bat Yam has a surprisingly high Occupancy Rate, especially in November, making it an excellent choice for hosts who prioritize consistent bookings over high daily rates.
In summary, the “best” city for Airbnb hosting depends on what you prioritize: profitability, occupancy, competition level, or market stability. Tel Aviv and Jerusalem offer a balanced profile for a wide range of hosts, but smaller or specialized markets like Caesarea and Herzliya provide lucrative opportunities for those targeting specific niches.