What are the Best Airbnb Investment Locations? 

Updated on: September 4, 2025

Airbnb has changed the way people think about both travel and investing. What started as a quirky idea – renting out an extra room to strangers – has turned into a massive short-term rental market. For property investors, it’s hard to ignore: there’s the chance to earn higher returns than with long-term tenants, and you get more flexibility in how you manage the place.

The truth is, making money with an Airbnb isn’t as straightforward as just buying a place and putting it up online. A lot comes into play – like whether the area actually draws steady visitors, how expensive properties are, what kind of restrictions the city sets, and even how many other hosts you’ll be competing with.

That’s why the big question investors keep asking is: does Airbnb really pay off, or not? That’s what we’ll dig into here. We’ll talk about what makes one location stronger than another, and point out a few hotspots around the world – from luxury apartments in Dubai to small, affordable rentals tucked away in Italy – that are attracting investor attention right now.

Is Airbnb a good investment? 

Well, it can be, but it’s not as clear-cut as some people make it sound. Yes, you can charge more per night than with a traditional lease, and you have the freedom to use the place yourself whenever you want. But there are trade-offs – slower months where bookings dry up, higher cleaning and maintenance costs, and of course, the headache of keeping up with whatever new rules the city decides to roll out.

At the end of the day, where the property is makes or breaks the deal. Some places practically rent themselves – busy tourist towns, cities with a steady stream of business travelers, or areas where hotels just can’t keep up with demand. On the flip side, if local rules are strict or the housing market is swinging up and down, the numbers get harder to make work. In a spot with easier regulations and a stable market, though, your chances of turning a profit go way up. Still, buying without running the numbers and looking at the risks is a gamble, and plenty of investors learn that the hard way.

What Really Matters When Picking an Airbnb Location

If you’re trying to figure out where to buy a place for Airbnb, there are a few things you can’t ignore. These factors usually decide whether the property makes money or just sits empty.

Tourism

The simplest rule? Go where the people go. A steady stream of visitors almost guarantees bookings. Cities with big attractions, year-round events, or just general popularity (think Italy, France, Miami) pull in millions of travelers, which keeps occupancy rates high.

Property Prices

Of course, the numbers have to make sense. Lower purchase prices with solid rental income potential are ideal, but it’s not always that straightforward. Take New York or Sydney- expensive markets, but the rental demand can still offset the high entry cost. Investors often look at the price-to-rent ratio to see how quickly they might earn their money back.

Competition

A lot of investors forget to look at the competition. If a neighborhood is packed with Airbnbs, it’s harder to get noticed and even harder to keep bookings steady. Too many listings usually push prices down and cut into profits. On the other hand, areas that are just starting to grow—or places where there aren’t many rentals yet – can sometimes turn out to be the real money makers.

Best Airbnb Investment Spots in Europe

Europe is packed with places that work well for Airbnb hosts, but a few countries keep coming up again and again because the demand is steady and the numbers make sense.

Italy

Italy is an obvious one. Tourists never stop coming, whether it’s for the ruins in Rome, the art in Florence, or the canals of Venice. Rome alone brings in well over 10 million visitors a year, which means there’s no shortage of people looking for a place to stay. For investors, that kind of foot traffic usually translates into bookings, and the bonus is that property in Italy tends to hold long-term appeal too – not just for the income, but for the lifestyle.

France

France is trickier, mostly because of the rules, especially in Paris. But even with the restrictions, demand is through the roof. Paris sees close to 30 million visitors each year, and the Riviera never loses its shine – beaches, festivals, celebrities, the whole package. If you manage to get a property in the right spot, occupancy rates tend to stay high, which makes the headaches with regulations worth it for many investors.

Spain

Spain rounds out the big three. The country had over 87 million international tourists in 2024, and a good chunk went straight for Airbnbs. Barcelona is still the standout—tourists love the mix of architecture and beaches—and occupancy rates there often hover above 75%. Madrid and Seville also pull strong demand, from both vacationers and business travelers. Add the sunshine and relatively relaxed rental laws, and it’s easy to see why Spain keeps climbing the list for investors.

Best Airbnb Investment Spots in the U.S.

Miami

Miami has been a go-to for Airbnb investors for a while now, and honestly, it’s not surprising. The city has everything – beaches, nightlife that seems endless, and a constant buzz from international events. It’s the kind of place that doesn’t really have an off-season. Ask any local host and they’ll tell you: in certain neighborhoods, occupancy can push past 80%. That steady demand, plus relatively welcoming rules for hosts, makes Miami hard to pass up.

New York

Now, New York is a bit trickier. The regulations are strict, sometimes confusing, and they change often. Still, it’s New York – people are going to come no matter what. Business travelers, tourists, even folks visiting family keep the city’s rental market alive. Manhattan and Brooklyn remain especially popular, and well-placed listings can do really well despite the red tape. The sheer magnetism of the city makes up for a lot of the hassle.

Los Angeles

LA brings a totally different flavor. Between Hollywood, endless sunshine, and the Pacific coastline, there’s no shortage of reasons people fly in. Some come chasing the entertainment scene, others just want beach time or the whole “California lifestyle” thing. Hot neighborhoods like Venice, Santa Monica, and West Hollywood see particularly strong demand. For hosts, the mix of tourists and business travelers means bookings stay fairly consistent, and that’s what makes the city so appealing.

Best Airbnb Investment Locations In UAE 

When people talk about Airbnb in the UAE, the first name out of their mouths is almost always Dubai. But it’s not the only place worth paying attention to. Abu Dhabi is picking up speed, and Sharjah – believe it or not – is starting to carve out its own niche.

Dubai

Dubai doesn’t really need an introduction. The city is all about scale: tallest building, biggest malls, islands shaped like palms… you get the idea. Tourists flood in for the shopping festivals, luxury lifestyle, and all the big events that seem to happen every other week. Some Airbnb hosts say their calendars are booked out most of the year. Prices to buy here aren’t cheap – far from it – but demand is steady enough that many investors bite the bullet anyway. The truth is, if you want global visibility and consistent guests, Dubai is still the heavyweight.

Abu Dhabi

Abu Dhabi runs differently. It’s calmer, more cultural, and honestly a little more “grown-up” than Dubai. The Louvre Abu Dhabi and Qasr Al Watan draw in visitors who want more than shopping malls, and business travel adds another layer of stability. Mid-week bookings often come from professionals, while weekends bring in leisure travelers. Properties close to cultural landmarks or business hubs usually get the best traction. It doesn’t have Dubai’s hype, but for some investors, that’s exactly the point.

Sharjah

Sharjah is the quiet one in the trio, and because of that, it’s often overlooked. Which, ironically, is why it’s interesting. Property prices are lower, and the city has leaned into its heritage – museums, cultural festivals, and family-friendly attractions. Tourists who don’t want the flash of Dubai or the business focus of Abu Dhabi are starting to find it. And with fewer Airbnb listings around, competition isn’t as cutthroat. For an investor, that’s a rare opening: lower costs on the way in, and growing demand on the way out.

Best Airbnb Investment Locations in Australia 

When people talk about Airbnb in Australia, three cities always come up: Sydney, Melbourne, and Brisbane. Each of them pulls in visitors for different reasons, and each has its own quirks for investors.

Sydney

Sydney doesn’t really need selling. Bondi Beach, the Opera House, the harbour – it’s got the postcard stuff that keeps tourists coming no matter the season. In 2024, over 15 million people passed through, which is huge. The downside? Buying property here costs a fortune. But hosts still dive in because demand in places like Bondi, Surry Hills, or the CBD almost never dries up. The truth is, if you’ve got the right apartment in the right spot, occupancy isn’t something you worry about too much.

Melbourne

Melbourne’s vibe is totally different. Think coffee culture, street art, and massive events like the Australian Open and Formula 1. The city welcomed more than 11 million visitors last year, many of them looking for short-term rentals near Fitzroy, St Kilda, or Southbank. Compared to Sydney, housing prices are a bit kinder, which makes the returns feel more balanced. To be fair, Melbourne doesn’t have the same international name recognition, but the steady stream of tourists and business travelers makes it just as solid for Airbnb.

Brisbane

Brisbane’s the interesting one. A few years back, it wasn’t really on many investors’ radars, but that’s changing. More than 10 million people visited in 2024, and the city’s got momentum – warm climate, close to the Gold and Sunshine Coasts, and of course the 2032 Olympics coming up. Fortitude Valley, West End, South Bank… those neighborhoods are already performing well, especially during peak times. Properties here are cheaper than in Sydney or Melbourne, and that gap is what’s drawing in more investors. It feels a bit like getting in early before the big rush.

Best Airbnb Investment Locations Based on Property Type

It’s not just where you invest that matters. The kind of place you buy can make or break your returns. Some properties pull in big spenders, others work because they stay full almost all year.

Luxury or Budget

Take luxury listings – Dubai penthouses, villas along the Riviera. They go after wealthy travelers who want the experience, not just a bed for the night. They can be incredibly profitable, but the guest pool is smaller. On the flip side, budget-friendly spots in busy areas like Miami or Rome fill up fast because there are simply more people looking for them. It’s really a choice between chasing bigger payouts or banking on volume.

The Potential of Unique Properties 

Treehouses. Tiny cabins. Floating homes. Properties like these almost always get attention on Airbnb. They don’t just compete on price – they stand out because people want the experience. And that’s the thing: travelers aren’t just booking a place to sleep, they’re booking a story they can tell later.

But here’s the catch: even the most unique property won’t save you if the basics aren’t there. Location, demand, pricing – those still matter. A villa on the water might look amazing in photos, but if it’s overpriced or in a dead zone, it’ll sit empty. I’ve seen it happen more than once.

And then there’s the day-to-day grind. Messages at midnight, trying to tweak your rates before a holiday weekend, juggling back-to-back checkouts… it’s not glamorous. That’s usually the part new hosts underestimate.

This is where tools like Hostify come in handy. It won’t magically make you rich, but it does take care of the annoying stuff – bookings, guest messages, pricing updates – so you’re not glued to your phone all the time. 
If you’re curious, try the demo. Worst case? You don’t like it and move on. Best case? You free up hours every week.

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