Germany is a popular destination for European and international tourists. People visit this country all year round, making it a perfect place for an Airbnb business. However, the seasonality and overall performance of short-term vacation rentals there varies a lot between different districts and cities. How to buy Airbnb property read here.
Discover more about the best European cities for Airbnb.
Best Districts for Airbnb Investments in Germany
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|Best Airbnb Districts in Germany||Revenue|
In this section, we will provide you with an overview of the most beneficial districts in terms of launching an Airbnb enterprise there. For each district, we have gathered the most essential parameters that will allow you to understand the market conditions in that specific area.
As its name suggests, Nordfriesland is a northern district. It is one of the closest districts to the Denmark border, and it contains several cities popular among tourists. One of the most attractive parts of Nordfriesland is the Halligen – a group of small islands located on the territory of this district. Most tourists come here in summer to enjoy the waters of the North Sea.
The competition here is quite intense, as there are 14,250 active vacation rentals in Nordfriesland. It is especially tough in the areas near the shore, as they are densely packed with active Airbnbs in summer. Nevertheless, the demand seems to cover the supply, as the Occupancy Rates reach their peak of 94% in August, while the annual average is 71%. The Average Daily Rate in Nordfriesland is $138, while the average monthly Revenue of Airbnbs here is $2,184.
In contrast to the previous district, Garmisch Partenkirchen is located in the very south of Germany, right near the Austrian border. It is also popular in summer, although some tourists still visit it in other seasons. Garmisch Partenkirchen is smaller than Nordfriesland and the rented properties are not as densely packed in small areas.
In total, there are only 1,550 active short-term rentals in Garmisch Partenkirchen, while the only area with a dense concentration of Airbnbs is Mittenwalt. The ADR in Garmisch Partenkirchen is $132, while the Occupancy Rates average 77%. They reach their peak of 99% in August, while the lowest they drop throughout the year is only 40%. The Revenue of hosts in this district is $2,105 per month, on average.
Schleswig Flensburg is located right next to the first district on our list, Nordfriesland. It also has an access to the sea, but there are no islands in this area. As you might have expected, the peak of demand here is in summer, where lots of tourists arrive to the coastal areas.
The performance indicators of Airbnbs in Schleswig Flensburg are almost the same as in Nordfriesland. The Average Daily Rate here is $141, and Occupancy Rates average 72% annually. Local hosts receive $2,074 worth of monthly revenue. Compared to Nordfriesland, the main benefit of Schleswig Flensburg is the reduced competition: there are only 3,850 active rentals in this district.
Ostholstein is another northern district on our list, however, it is located closer to Hamburg than the previous ones. It has a long coastline, on which the most local short-term rentals are located. It is an area with intense competition, although there is still room for new properties. Taking into account its decent metrics, Ostholstein might turn out to be a great investment opportunity.
In Ostholstein, a new entrepreneur will have to compete with 12,300 other properties. Thanks to the large area of this district, there are still some areas with not so many rentals. The Average Daily Rate here is $122, while the Occupancy Rates average 79%. Even with a lower ADR, the hosts in Ostholstein manage to earn $2,066 worth of Revenues per month.
Friesland is the first district on our list in which hosts make less than $2,000 worth of Revenue per month, although it is still a place with some great potential. Even though the area is small, the competition here is not intense at all. The district is developing quickly, so opening a short-term rental business here might be a great idea.
In total, there are only around 2,450 active Airbnbs in Friesland. 99% of properties here are entire homes with 1.8 bedrooms, on average. The Average Daily Rate in this district is $123 with minimal fluctuations between seasons. The Occupancy Rates here drop from 95% in August to only 26% in January, however, maintaining a decent annual average of 74%. Combined, these factors grant local hosts an average monthly Revenue of $1,944.
Aurich is located close to Friesland and has rather similar metrics, although its area is significantly larger. Just like most previous regions, Aurich is especially popular in summer, however, not all tourists come here for a relaxing experience on the shore. It has several other towns located far from the coastline, where short-term rentals still manage to attract guests.
As it has a larger area, there is no surprise the number of active Airbnbs here is also larger: it is slightly above 4,500. The Average Daily Rate in Aurich is $109, which is significantly lower than in Friesland. Perhaps it is the main reason behind the increased Occupancy Rates, which average 82% here. The Revenue of Airbnbs is a bit lower here, as it is $1,895 per month for local hosts.
Oberallgau is a southern district located close to Garmisch Partenkirchen, the one we have already reviewed on this list. The conditions here are quite similar: the district is especially popular in August, while still attracting sufficient numbers of tourists in winter. Its area is relatively small, and the competition here is very mild.
In total, there are around 1,800 currently operating Airbnbs in Oberallgau. The Average Daily Rate for them is $116, while the Occupancy Rates average 76%. In contrast to the northern districts, these rates only drop to 47% in November. On average, the properties here generate $1,873 worth of Revenue per month. Active rentals are not packing the area of Oberallgäu too densely, leaving enough space for new entrepreneurs to take over.
Nordwestmecklenburg is another district with great potential for short-term rental entrepreneurs. It is located right next to Ostholstein, and these two districts are especially interesting to compare. Nordwestmecklenburg has a shorter coastline than Ostholstein, which turns out to be the main reason the performance indicators of local entrepreneurs are a bit lower here.
In total, Nordwestmecklenburg has only around 3,600 active Airbnbs, which is more than three times lower than in Ostholstein. Although it does not mean the competition here is less intense. Airbnbs in this district are competing hard against each other on the coastline, and they are more densely packed than in Ostholstein.
What is interesting is that the Average Daily Rates in these two districts are the same: booking an Airbnb will cost a guest $122. However, thanks to the increased competition, the Occupancy Rates are only 72% in Nordwestmecklenburg. It is only seven percent lower than in Ostholstein, but the effect on Revenues is quite significant. The Revenue of a host in Nordwestmecklenburg is $1,864 per month. It is rather decent, although it is still $200 lower than in Ostholstein.
Vorpommern is a district north from Berlin that also has an access to the sea. The picture here is rather familiar: lots of tourists visit this place in hot summer months, while local hosts have to deal with a huge downfall of demand in winter. Nevertheless, as most other coastal districts of Germany, it is a place with rather decent returns.
At the time of writing, there are 16,500 active vacation rentals in Vorpommern. Taking into account the moderate area of this district, it is easy to say the competition here is tough. Thankfully, the flow of visitors in summer still covers it, as Occupancy Rates average 71% here. The Average Daily Rate in Vorpommern is $122, which is on the same level as many other districts. The average Revenue generated by properties here is $1,844 per month.
Bodenseekreis is a beautiful place in the south of Germany. It is located on the shore of Lake Constance, where most local properties are concentrated. It is another popular summer destination. Moreover, it can clearly host more short-term rentals, as everything is booked out in August here.
The total number of active Airbnbs in Bodenseekreis is only 2,600. Taking into account its relatively large area, this number is quite moderate. The Average Daily Rate of local properties is $118, while the Occupancy Rates are 80% in this district. The annual average Revenue here is $1,821 per month.
Top 5 Cities for Airbnb Investments in Germany
German cities also have a lot to offer to short-term vacation rental entrepreneurs. These highly-populated places attract a lot more tourists all year round, although the competition here is tougher as well. We have picked the five best-performing cities for the article and are ready to share all the important details.
|Best Airbnb Cities in Germany||Revenue|
Right now, Hamburg is the most optimal city to choose for an Airbnb investment in Germany. It is popular among tourists, while not having so many other rentals to compete against. Even though its peak of popularity is in summer, the demand in other seasons is sufficient enough to keep local properties profitable.
The ADR of rentals in Hamburg is $123, and the Occupancy Rates average 80% here. In total, there are only around 2,400 active Airbnbs here. This reduced competition allows local hosts to generate $1,922 worth of monthly Revenue.
The capital of Germany is still an interesting place to invest in. In contrast to capital cities of many other countries, the supply here is not too huge. Of course, Berlin is extremely densely packed with active rentals, but it is still far from what you would see at many other capitals. In comparison to other German cities, Berlin offers one of the best market conditions for short-term rental enterprises.
The Average Daily Rate in Berlin is $119, which is even lower than in some other regions of Germany. At the same time, the Occupancy Rates average 85% here, which is higher than what many other places can offer. The Revenue generated by an average property in Berlin is $1,903. A new entrant will have to compete against around 7,100 other rentals.
Lubeck is smaller than the previous cities we’ve covered, but it might be its main advantage. Entrepreneurs who decide to open a short-term vacation rental business here will get almost the same profits, while not having to compete with as many other Airbnbs. In total, Lubeck is home to 1,400 active rentals.
The Average Daily Rate in Lubeck is $104, while the Occupancy Rates average 73% throughout the year. The average Revenue of an Airbnb in Lubeck is $1,546 per month. It is lower than in most other areas on our list, but it is still a decent return, taking into account the reduced competition.
In contrast to Lubeck, Munich is a place where competition affects the profits negatively for most entrepreneurs. The market here is a bit oversaturated, as the city is home to more than 5,400 active Airbnbs. The ADR in Munich is $128, but the Occupancy Rates are only 67%. Combined, these factors result in a monthly average Revenue of $1,415.
Cologne is the last city on our list, but it might appeal to some aspiring entrepreneurs. There are 2,400 properties that are being rented out here, while the ADR is only $103. Properties in Cologne have Occupancy Rates of 71% and generate $1,286 worth of monthly Revenue. It is lower than in most areas we have reviewed today, but the city is being actively developed, while still offering rather decent results.