The best cities for Airbnb in Ireland
As a country, Ireland has always been on the top-lists of destinations for tourism. It might not be the most demanded location in the world, but its popularity is decent enough to support a short-term vacation rental market. The country has a huge potential for Airbnb entrepreneurs, however, choosing the city will play a crucial role in the process.
Top сities for Airbnb Investment in Europe.
The Top Ten Cities for an Airbnb Investment in Ireland
Airbnb is a relatively new phenomenon in Ireland, so even the highest cities by population are not as densely packed with rentals, as in most other places in the world. The country offers investors a wide variety of options: there are large cities with stable business environments and smaller towns with almost untapped markets.
Galway is a relatively small city located in the Western part of Ireland. It has access to the North Atlantic Ocean as well as to the Lough Corrib lake. The rental market here is rather small, but it is growing at an impressive rate of 18% per quarter. At the time of writing, there are about 570 properties that are actively rented out in Galway: 52% of them are entire homes and 45% are left for private rooms.
The Average Daily Rate in Galway is $219 with slight deviations throughout the year. The Occupancy Rates here grew from 33% in January to 93% in September, averaging 76% annually. Even with such a seasonal effect, the hosts here have managed to earn $3,512 worth of monthly Revenues on average.
Expectedly, Dublin has the largest Airbnb market on our list. Being the capital city of Ireland, it attracts millions of tourists annually, creating a perfect setup for the short-term rental business. The competition here is corresponding: there are almost 2,600 active listings in Dublin. The proportion is similar to Galway: 51% of listings are entire homes, while 41% of them are private rooms.
As for the performance metrics, they are rather impressive in Dublin. The Average Daily Rate here is $214, while the Occupancy Rates average 84% throughout the year. The seasonality here is the same as with the previous city, although the popularity of Dublin allows it to be more demanded in winter. The Revenues of local hosts average $3,147 per month.
Cork is a small city in the South of Ireland. In contrast to the previous cities, it does not have access to the ocean, which is why it is only developing now as a tourist destination. Nevertheless, its short-term rental market faces a quarterly growth of 20%, signifying the potential it has for entrepreneurs. At the time of writing, there are only 250 active rentals in Cork, and the distribution between entire homes and private rooms is almost equal.
The Average Daily Rate here is significantly lower than with the previous cities, as the metric only averages $153 throughout the year. However, it has a clear positive effect on the Occupation Rates, which are 85% here. The revenues of local hosts are $2,556 per month.
Kilkenny has a similar situation as Cork. It is not the most popular destination among tourists, but the low prices and its natural sights manage to attract enough visitors to support the enterprises. Right now, there are only 320 active rentals here. The area of Kilkenny is huge, and there is clearly room for a lot more Airbnbs here.
The Average Daily Rate in Kilkenny is $148, while the Occupancy Rates average 61%. The monthly Revenue of local hosts is $2,182 per month, which is still rather decent. It is also interesting to note that 69% of properties in Kilkenny are entire homes, while private rooms make up for only 31% of the listings.
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Limerick is the city with the smallest rental market on our list, but it still has a potential for investors. The city is home to only 81 Airbnbs, 38% of which are entire homes, while private rooms make up for 62% of the listings.
The ADR here is $145, and the Occupancy Rates are 77%. Similar to one of the previous cities, the low level of prices has allowed hosts in Limerick to boost the demand, enabling them to generate $2,153 worth of monthly Revenues.
In contrast to Limerick, Waterford has access to the ocean. It occupies a relatively large area, while its rental market only has around 400 properties to offer. The competition is almost absent, as the rentals are scattered around the shore, and there is enough room for more businesses.
The majority of listings are entire homes, while only 20% of them are private rooms. The Average Daily Rates here are $154. The Occupancy Rates average 60% throughout the year, allowing the hosts to generate $1,951 worth of monthly Revenue.
Ballynahinch has almost exactly the same situation, both in terms of the market conditions and performance metrics. There are 428 active listings here, out of which 88% are entire homes. The area is huge, and there will be almost no competition in any place an entrepreneur decides to launch their Airbnb.
The ADR here is $152, while the average Occupancy Rates are 58%. The properties here generate $1,894 worth of monthly revenue, which is lower than with the previous cities, but still decent, compared to the rest of Ireland.
Moycullen is located right next to Ballynahinch, and there is no surprise the conditions here are similar. Its area is comparable to the previous city, but the supply here is lower, as there are only 200 rentals actively operating in Moycullen right now. Similarly, 75% of the listings are entire homes.
The Average Daily Rate in this city is $149, while the Occupancy Rates grow from 27% in January to 92% in August, averaging 62% throughout the year. It results in the hosts receiving $1,871 worth of average monthly Revenue.
Sligo also has access to the Ocean, and the majority of its Airbnbs are concentrated around the shore. Right now, Sligo is home to almost 400 properties that are being actively rented out, but there is clearly room for more, as the market has been growing steadily over the past several years. The most popular type of rentals is the entire home, as these properties make up for 78% of all listings in Sligo. The ADR in Sligo is $130, and the Occupancy Rates average 63%. The average monthly Revenue of properties in this city is $1,689.
Kilmacrennan is the last city on the list, and it is located in the North of Ireland. It attracts enough tourists to support a relatively large rental market. The city is home to more than 500 rentals, and the market’s stable quarterly growth of 6% signifies that it is ready to accept more. Much like in all other smaller cities, entire homes dominate the market here, as they make up for 88% of all listings. The ADR of properties in Kilmacrennan is $151, while the Occupancy Rates average 48%. The Revenues of local hosts are $1,557 per month, on average.
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