The best cities for Airbnb in Spain
Span has always been a country with a potential for short-term rental entrepreneurs. It is popular among tourists, while local real estate is a lot cheaper than in many other European countries. Even though the demand here is subject to seasonality, many entrepreneurs manage to create successful businesses here.
However, the rental market conditions are different in each region, making it important to choose the location properly. In the article, we will overview the most popular destinations for Airbnb hosts, sharing such crucial details as numbers of local Airbnbs as well as their main performance metrics.
The best Spanish cities for Airbnb
| Cities | Revenue |
| Pollença | $3,698 |
| Barcelona | $3,133 |
| Palma | $3,128 |
| Alcúdia | $3,099 |
| Marbella | $2,580 |
| Yaiza | $2,231 |
| Madrid | $2,052 |
| Valencia | $1,954 |
| Seville | $1,940 |
| Málaga | $1,939 |
| Mijas | $1,703 |
| Tarifa | $1,681 |
| Granada | $1,664 |
| Nerja | $1,600 |
| Alicante | $1,477 |
| San Bartolomé de Tirajana | $1,438 |
| Conil de la Frontera | $1,438 |
| Benalmadena | $1,390 |
| Torremolinos | $1,332 |
| Denia | $1,305 |
Also, read more about the best cities for Airbnb in Europe.
Pollença
Pollença is the first region on our list. It is located on the island of Majorca and offers several significant benefits to local short-term rental enterprises. First of all, the area of this municipality is rather large. Combined with the fact that there are around 3,200 active rentals there, it is easy to say the competition here is rather moderate.
However, it is not even the main benefit of this region. Right now, it is the best place in Spain in terms of average monthly Revenues, which reach $3,698 here. This is caused by impressive Occupancy Rates of 80%, which peak in the summer, reaching almost 100%. The Average Daily Rates here are $259, and they also peak in August. Even though the business here is seasonal, the demand of summer is huge, allowing local Airbnbs to stay viable and profitable.
Barcelona
Similar to the previous region, Barcelona has decent Revenues for its hosts. The city is popular among tourists during all seasons, but the competition there is extremely intense. More people visit Barcelona in summer, and even though there are lots of tourists in other seasons, there is not enough to cover all the supply, which makes most local hosts have their Occupancy Rates dropped.
In total, there are more than 11,500 active Airbnbs in Barcelona. While there is some space in the city’s outskirts, the center is densely packed with rentals. The Average Daily Rate here is $187, while the Occupancy Rates fluctuate between 48% in January and 97% in August, averaging 80% throughout the year. The average monthly Revenue of local hosts is $3,133, which is still one of the best options in Spain.
Explore Capitalizing on the Lucrative Barcelona Airbnb Market: An Investor’s Perspective.
Alcúdia
Alcúdia is located right next to Pollença and its short-term rental market has similar conditions. The only significant difference is that the area of Alcúdia is smaller, making the competition rather intense here. Nevertheless, the demand from tourists seems to cover the supply, as the region is also one of the most profitable places in Spain for new Airbnb businesses.
In Alcúdia, there are around 2,100 active rentals, most of which are densely packed on the shore. The Average Daily Rate here is $228 and its deviation throughout the year is minimal. The Occupancy Rate averages 77%, but it faces the same seasonality impact as in all the previous regions. The Revenue generated by an average property in Alcúdia is $3,099 per month.
Palma
Palma is a region of Spain with more potential for entrepreneurs. While in Barcelona, almost every spot is already occupied, there is still enough room in Palma for new businesses. The competition is rather intense around the city center, but there are fewer properties located around the shore.
In total, there are only around 2,150 active short-term rentals in Palma, while the Average Daily Rate here is $185. The demand is also seasonal, as the Occupancy Rates fluctuate between 40% in January and 95% in August, averaging 80% annually. The average Revenue entrepreneurs from Palma receive is $3,128 per month.
Marbella
Marbella is another region that attracts many hosts and guests. Compared to Alcúdia, it has a larger area but it also has three times as many active Airbnbs. The competition here is quite intense, which has an effect on the Occupancy Rates of local entrepreneurs.
The region has 6,000 properties that are being rented out on Airbnb and VRBO. The Average Daily Rates of properties in Marbella are $220, while the Occupancy Rates only average 64%. Like in all previous regions, there is a peak of demand in summer, but the Occupancy Rates go significantly lower during other seasons. The Revenue of an average Airbnb in the area is $2,580 per month.
Yaiza
Yaiza is another region of Spain that might be interesting for entrepreneurs. The area of Yaiza is large, while only two cities of the municipality are densely packed with rentals. Thus, there is still enough room for more businesses. Taking into account the financial indicators of local properties, Yaiza might become a great opportunity for new Airbnb hosts.
In total, there are only around 2,100 active rentals there. The Average Daily Rate is lower than in the previous regions, as it only averages $163. The Occupancy Rates peak at 96% in August, but the annual average is 75%. The average monthly Revenue here is $2,231 and it fluctuates between $1,855 and $2,610 throughout the year.
Madrid
Madrid is one of the most popular tourist destinations in Spain, but it is also the most popular region among Airbnb hosts. The situation here is extremely similar to the one in Barcelona: there are lots of tourists during any season, but there are too many Airbnbs in Madrid to keep them all viable annually.
The number of active short-term rentals in Madrid is almost unprecedented, as there are 14,800 rented properties there. The Average Daily Rate of Airbnbs in the capital of Spain is $122, while the Occupancy Rates average 77% throughout the year. The intense competition results in a monthly Revenue of $2,052 received by local hosts.
Airbnb Statistics and Legal Issues in Madrid.
Valencia
Valencia is a smaller city, yet it also has intense competition among hosts. Short-term rental properties here are densely packing the city, however, there is still some room for new rentals in the outskirts. Right now, Valencia is home to around 5,800 active Airbnbs.
Most properties in Valencia are entire homes, although 31% of them are private rooms. The ADR in Valencia is $114 throughout the year, while the Occupancy Rates average 81%. This results in average revenue of $1,954 per month.
Seville
Even though Seville has a lot of differences from Valencia as a city, these two regions of Spain have almost the same short-term rental market conditions. The city center of Seville is extremely popular among hosts, while there are some properties on the outskirts as well.
In total, there are around 6,100 rentals currently operating in Seville, while the Average Daily Rate is $121. The demand is also seasonal, and the Occupancy Rates fluctuate between 45% in January and 83% in September, averaging 68% annually. The Revenues here are $1,940 per month for local hosts.
Málaga
Málaga is located on the shore and also has similar market conditions as the previous two regions. The only significant difference is that local properties are packed across the shore instead of the city center.
Right now, there are 6,600 active properties in Málaga. They are averagely rented out for $117 per day, while the Occupancy Rates are 76% in the region. Local properties generate $1,939 worth of monthly Revenues, which is still quite decent.
Mijas
Mijas has quite a unique Airbnb market. Even though most of its rentals are concentrated on the southern shore, there are many properties scattered around its large area. This makes it possible to launch a new business far away from any competitors.
And, according to the data of existing Airbnbs, such business will perform well. The ADR in Mijas is $141, which is backed by the Occupancy Rate of 67%. Local hosts receive $1,703 worth of monthly Revenue on average.
Tarifa
Tarifa also has a large area with not so many active Airbnbs in any part of it. The vast majority of properties are located on the shore, although it is hard to say they are packing it densely. The performance is a bit worse than in the previous regions, but for some entrepreneurs, it will be worth it.
The ADR here is $142, fluctuating between $100 in November and $195 in August. The Occupancy Rates average 63%, although there is a huge drop in demand in winter. The average monthly Revenue of property in Tarifa is $1,681.
Granada
Granada is located rather far from the coast, but it still attracts the most visitors in summer. The rental growth has been quite impressive for this region over the past couple of years, and it seems there is room for more rental properties in the area.
In total, there are 2,750 active properties here, most of them being entire homes. The ADR in Granada is $102, with minimal fluctuations throughout the year. The Occupancy Rates, on the other hand, fluctuate between 48% in January and 80% in September, averaging 67% annually. The Revenues of local hosts are $1,664 per month on average.
Nerja
Nerja also has a large area, although most of its properties are densely packed in the city. The city also has one of the largest percentages of entire home listings across Spain: only 5% of local properties are private rooms.
Nerja is home to 2,500 active Airbnbs, which are rented out for $123 per day on average. The Occupancy Rates are 71% throughout the year, allowing local rentals to generate $1,600 worth of monthly income.
Alicante
Alicante has a small area, but the competition here is as intense as in Nerja. Like in many other regions of Spain, the business in Alicante is extremely seasonal. Most listings in the area are entire homes, but there are around 700 private rooms available here as well.
Right now, there are around 3,200 active Airbnbs in Alicante. The Average Daily Rate in the region is $102, while the Occupancy Rates average 71%. Rentals in Alicante averagely generate $1,477 worth of monthly income.
San Bartolomé de Tirajana
San Bartolomé de Tirajana is one of the few places on our list that are not located on the mainland. It is a municipality on the island of Gran Canaria, while most rentals here occupy the southern shore.
In total, there are around 3,450 properties that are being rented out in San Bartolomé de Tirajana. The ADR here is $113, while the Occupancy Rates average 65%. The average Revenue of local properties is $1,438 per month.
Conil de la Frontera
Conil de la Frontera is another region of Spain, where entire homes make up for the vast majority of Airbnbs. The main benefit of this region is its area, as local properties are not packing it too densely.
Conil de la Frontera is home to 2,500 active short-term rental businesses, where an average property is rented out for $124 per day. The Occupancy Rates, just like in the previous region, are 65%, which results in an average monthly Revenue of $1,438.
Benalmadena
Benalmadena has similar market conditions to the previous region on our list: it has a large area, which is not so densely packed with Airbnbs. The quarterly rental growth here is 11%, which is one of the highest results in Spain.
At the time of writing, there are only 3,100 Airbnbs here, averagely rented out for $109 per day. The Occupancy Rates here are rather high, as they average 72%. Local properties generate $1,390 worth of monthly Revenue, on average.
Torremolinos
Torremolinos is another place with moderate levels of competition. There are only 2,100 rentals here, with Average Daily Rates of $105. The Occupancy Rates here fluctuate between 45% in January and 96% in August, averaging 73% throughout the year. The average monthly Revenue here is $1,332.
Denia
Denia is the last region on our list, but it is definitely not the least in terms of its potential for Airbnb hosts. Even though it does not currently have the best metrics across Spain, its quarterly rental growth of 8% makes it a very promising destination.
Denia is currently home to around 3,200 vacation rentals, while the ADR here is $133. The Occupancy Rates are a bit lower than in other regions, as they average 61%. The average monthly Revenue of local hosts is $1,305.
The best locations for Airbnb investment in Germany discover here.
