Most Profitable Airbnb Cities in India 2025: ROI & Top Neighborhoods
As someone who has navigated the worlds of travel and real estate investment for years, I’ve seen the Airbnb market in India change dramatically. Rising property costs, intense competition, and new regulations are tightening profit margins. Finding a profitable Airbnb can feel like searching for a parking spot in Mumbai during rush hour, possible, but it requires a solid strategy. Investors now face a critical challenge: identifying which cities will deliver sustainable returns in 2025 without relying on outdated information.
This article provides an analysis based on data of India’s top 10 most profitable Airbnb cities, complete with precise ROI figures, seasonal patterns, and neighborhood-specific insights. While traditional Airbnb hosting has its challenges, platforms like HireaVilla offer better ways to make money from premium properties. Our analysis combines 2025 forecasts from Airbtics, AirROI, and real estate reports to give you practical investment advice. If you’re searching for the best places to start an Airbnb in India or exploring current revenue trends, this article offers comprehensive, up-to-date insights.
For more specific information on city and neighborhood listings, check out Airbnb India.
| City | Avg. Occupancy Rate | Avg. Daily Rate | Annual Revenue | Top Neighborhoods | ROI Range |
| Mumbai | 61% | ₹4,339 | ₹938,924 | Bandra West, Colaba, Powai | 8-12% |
| Goa | 49% | ₹4,173 | ₹742,209 | Anjuna/Vagator, Candolim, Palolem | 9-14% |
| New Delhi | 49% | ₹3,338 | ₹574,538 | Connaught Place, South Delhi, Hauz Khas | 7-10% |
| Chennai | 54% | ₹2,837 | ₹544,326 | T. Nagar, OMR, Mylapore | 6-9% |
| Hyderabad | 44% | ₹2,921 | ₹459,697 | HITEC City, Banjara Hills, Gachibowli | 6-8% |
| Kolkata | 46% | ₹2,336 | ₹393,430 | Park Street, Salt Lake, New Town | 5-7% |
| Pune | 46% | ₹2,420 | ₹415,380 | Koregaon Park, Hinjewadi, Viman Nagar | 5-8% |
| Jaipur | 35% | ₹2,837 | ₹370,145 | Civil Lines, Malviya Nagar, Raja Park | 7-10% |
| Bengaluru | 49% | ₹2,003 | ₹368,308 | Indiranagar, Koramangala, Whitefield | 5-7% |
| Gurgaon | 34% | ₹2,754 | ₹349,447 | DLF CyberCity, Golf Course Road, Sohna Road | 5-7% |
Top 10 Most Profitable Airbnb Cities in India (2025)
1. Mumbai: India’s Revenue Champion
| Metric | Value |
| Avg. Occupancy Rate | 61% |
| Avg. Daily Rate | ₹4,339 |
| Annual Revenue | ₹938,924 |
Top Neighborhoods:
- Bandra West (luxury segment)
- Colaba (tourist hotspot)
- Powai (business traveler hub)
Explore neighborhood listings on Bandra West and Colaba. Mumbai is the undisputed king, and I’ve seen this firsthand. It’s a city that never sleeps, and apparently, neither does its rental income. Peak demand occurs from October-February and during major festivals. Expect an 8-12% annual ROI for well-located properties, with premium sea-facing apartments commanding the highest returns. Mumbai consistently ranks at the top, a fact often confirmed on Reddit threads about the most profitable Airbnb cities in India.
Property Investment Cost: In Bandra West, a typical 2-bedroom apartment averages between ₹4.6 crore and ₹4.7 crore, with per-square-foot prices ranging from ₹42,000 to ₹60,000. This substantial initial investment is offset by higher rental yields compared to other Indian cities.
Regulatory Requirements: Mumbai is transitioning to a formal STR licensing system. Currently, hosts operate under Leave & License Agreements but typically need NOCs from housing societies and police. The BMC is implementing new policies that will mandate licenses for residential STRs, with potential requirements including minimum insurance coverage of ₹40 lakhs. Property tax rates for STRs may fall between residential and commercial categories, increasing the overall tax burden.
Property Type Variations: Property size significantly impacts returns in premium neighborhoods:
- 1 BHK apartments: ₹1,800-₹2,500 daily rate
- 2 BHK apartments: ₹3,000-₹5,000 daily rate
- 3+ BHK or sea-facing: ₹6,000-₹15,000+ daily rate
2. Goa: Vacation Rental Powerhouse
| Metric | Value |
| Avg. Occupancy Rate | 49% |
| Avg. Daily Rate | ₹4,173 |
| Annual Revenue | ₹742,209 |
Top Neighborhoods:
- Anjuna/Vagator (North Goa)
- Candolim (beach access)
- Palolem (South Goa)
Find properties in Anjuna for ideal beachside investments. I once advised a client on a villa in Anjuna that was booked solid for six months straight. The secret? A great pool and even better Wi-Fi. It’s no longer just about a place to crash near the beach. High season runs from November to March, with secondary peaks during Indian holidays. Villa properties can achieve 9-14% ROI, particularly those offering unique amenities or proximity to the best beaches.
Property Investment Cost: In Anjuna, a 2-bedroom apartment costs between ₹86 lakh and ₹1.1 crore, with per-square-foot prices ranging from ₹7,300 to ₹13,100. This lower entry cost compared to Mumbai contributes to Goa’s higher potential ROI.
Regulatory Requirements: Goa has one of India’s more structured STR frameworks. Many short-term rentals are classified as “homestays,” requiring mandatory registration with the Goa Tourism Department. Licensing requires proof of ownership or lease and compliance with safety and hygiene standards. Hosts must report guest details (especially foreigners) to local police. Goa imposes a “bed tax” on guests in registered accommodations, collected by operators.
Property Type Variations:
Standard 2 BHK apartments: ₹3,000-₹4,500 daily rate
Villas (3-4 bedrooms): ₹8,000-₹25,000+ daily rate, with a significant premium during peak season
Luxury beachfront properties: ₹30,000-₹100,000+ daily rate during high season
3. New Delhi: Capital Returns
| Metric | Value |
| Avg. Occupancy Rate | 49% |
| Avg. Daily Rate | ₹3,338 |
| Annual Revenue | ₹574,538 |
Top Neighborhoods:
- Connaught Place (central)
- South Delhi (upscale)
- Hauz Khas (trendy locale)
Discover listings in Connaught Place. From the beaches of Goa, let’s head to the capital. Delhi’s market is a different beast altogether, with consistent demand from October to March and business travel throughout the year. Properties average a 7-10% ROI with added value from a favorable regulatory environment compared to other metros. It’s frequently cited in online discussions about India’s most profitable Airbnb cities.
Regulatory Requirements: New Delhi lacks a well-defined STR license requirement. Hosts generally operate under general tenancy laws using Leave & License Agreements. Individual housing societies often require their own NOC or permission, and a police NOC is recommended, particularly for foreign guests. Income from STRs is taxable, and GST may apply if rental income exceeds established thresholds.
Property Type Variations: In upscale South Delhi neighborhoods:
- 1 BHK apartments: ₹2,000-₹3,000 daily rate
- 2 BHK apartments: ₹3,000-₹5,000 daily rate
- 3+ BHK or luxury apartments: ₹5,000-₹12,000+ daily rate
4. Chennai: Southern Stability
| Metric | Value |
| Avg. Occupancy Rate | 54% |
| Avg. Daily Rate | ₹2,837 |
| Annual Revenue | ₹544,326 |
Top Neighborhoods:
- T. Nagar (shopping district)
- OMR (IT corridor)
- Mylapore (cultural hub)
Explore accommodations in T. Nagar. Chennai is the quiet achiever on this list. While it might not have the glamour of Mumbai or Goa, its high occupancy rate tells a story of consistent demand. Demand peaks from December to February and during summer corporate relocations. Expect 6-9% ROI, with especially strong returns from medical tourism accommodations near hospital districts. It is increasingly recommended as one of the best places to start an Airbnb in India.
Property Type Variations: Properties in the OMR IT corridor show significant variations:
- 1 BHK apartments: ₹1,500-₹2,200 daily rate
- 2 BHK apartments: ₹2,500-₹3,500 daily rate
- 3 BHK apartments: ₹3,500-₹5,500 daily rate
5. Hyderabad: Tech-Driven Growth
| Metric | Value |
| Avg. Occupancy Rate | 44% |
| Avg. Daily Rate | ₹2,921 |
| Annual Revenue | ₹459,697 |
Top Neighborhoods:
- HITEC City (tech park)
- Banjara Hills (upscale)
- Gachibowli (business district)
Browse options in HITEC City. Strong demand during tech conferences and year-round business travel. Properties deliver 6-8% ROI with growing potential as infrastructure improves. Hyderabad is gaining attention on forums as a promising option in the Indian Airbnb market.
Property Type Variations: In HITEC City:
2 BHK apartments command monthly rental rates of ₹32,000-₹45,000 (translating to daily rates of approximately ₹1,500-₹2,500 for short-term rentals)
Larger units like penthouses or villas can command several lakhs per month, with daily rates for short-term stays ranging from ₹4,000-₹10,000+ depending on size and amenities
6. Kolkata: Cultural Capital
| Metric | Value |
| Avg. Occupancy Rate | 46% |
| Avg. Daily Rate | ₹2,336 |
| Annual Revenue | ₹393,430 |
Top Neighborhoods:
- Park Street (central)
- Salt Lake (business hub)
- New Town (modern development)
Peak seasons occur during Durga Puja (October) and the winter months. Kolkata’s appeal is its unique character. Heritage properties command premium rates, with a market average ROI of 5-7%.
Property Type Variations: In Salt Lake and New Town:
- 1 BHK apartments: ₹1,200-₹1,800 daily rate
- 2 BHK apartments: ₹1,800-₹2,500 daily rate
- 3 BHK apartments: ₹2,500-₹4,000 daily rate
7. Pune: Student and Tech Hub
| Metric | Value |
| Avg. Occupancy Rate | 46% |
| Avg. Daily Rate | ₹2,420 |
| Annual Revenue | ₹415,380 |
Top Neighborhoods:
- Koregaon Park (upscale)
- Hinjewadi (IT park)
- Viman Nagar (expat friendly)
Pune often gets overshadowed by Mumbai, but that’s a mistake. Its blend of students and IT professionals creates a steady rental market. It has consistent occupancy with slight drops during the monsoon (June-August). Properties near tech parks or educational institutions achieve 5-8% ROI with lower entry costs than Mumbai.
Property Type Variations: In Koregaon Park:
- 1 BHK/studio apartments: ₹800-₹1,200 daily rate (monthly equivalent: ₹23,000-₹35,000)
- 2 BHK flats: ₹1,200-₹2,200 daily rate (monthly equivalent: ₹35,000-₹70,000)
- 3-4 BHK or villas: ₹3,500-₹10,000 daily rate (monthly equivalent: ₹1.1 lakh to ₹2.95 lakh)
8. Jaipur: Heritage Tourism
| Metric | Value |
| Avg. Occupancy Rate | 35% |
| Avg. Daily Rate | ₹2,837 |
| Annual Revenue | ₹370,145 |
Top Neighborhoods:
- Civil Lines (central)
- Malviya Nagar (accessibility)
- Raja Park (residential)
Jaipur is the definition of a seasonal market. It’s extremely seasonal, with October to March highs and summer lows. You can make a great return then, but your property might sit idle in the May heat. Heritage havelis and boutique properties achieve 7-10% ROI during peak seasons but require strategic off-season management. Jaipur is often recommended in online lists for its high peak ROI.
Property Type Variations: Heritage properties and modern apartments show distinct rate patterns:
- Standard 2 BHK apartments: ₹1,800-₹2,500 daily rate
- Heritage havelis (per room): ₹2,500-₹5,000 daily rate
- Full heritage properties: ₹8,000-₹25,000+ daily rate during peak season
9. Bengaluru: Tech Capital
| Metric | Value |
| Avg. Occupancy Rate | 49% |
| Avg. Daily Rate | ₹2,003 |
| Annual Revenue | ₹368,308 |
Top Neighborhoods:
- Indiranagar (trendy locale)
- Koramangala (startup hub)
- Whitefield (tech park)
Check out properties in Indiranagar. Ah, Bengaluru. An Airbnb here is less about tourists and more about catering to the constant flow of tech professionals. It has year-round business demand with slight dips during monsoons. Properties deliver 5-7% ROI, with a competitive advantage for homes near major tech campuses. Bengaluru is a case study of Airbnb’s growth in India and is often mentioned as one of the best locations for Airbnb in the South.
Property Investment Cost: In Indiranagar, a 2-bedroom apartment averages between ₹1.5 crore and ₹2.3 crore, reflecting the area’s popularity among tech professionals and expatriates.
Property Type Variations: In Indiranagar and Koramangala:
- 1 BHK apartments: ₹1,300-₹2,000 daily rate
- 2 BHK apartments: ₹2,000-₹3,500 daily rate
- 3+ BHK or premium apartments: ₹3,500-₹6,000+ daily rate
10. Gurgaon: Corporate Haven
| Metric | Value |
| Avg. Occupancy Rate | 34% |
| Avg. Daily Rate | ₹2,754 |
| Annual Revenue | ₹349,447 |
Top Neighborhoods:
- DLF CyberCity (business district)
- Golf Course Road (luxury segment)
- Sohna Road (residential)
Gurgaon is all business. If your property isn’t geared towards the corporate traveler, you’re missing the point. It has predominantly business-driven demand with weekday peaks and weekend troughs. Properties achieve 5-7% ROI with premium rates for accommodations catering to extended corporate stays. Gurgaon makes regular appearances in discussions of profitable Airbnb cities due to its strong corporate travel market.
Property Type Variations: In luxury segments like Golf Course Road:
- 1 BHK premium apartments: ₹2,000-₹3,000 daily rate
- 2 BHK premium apartments: ₹3,000-₹5,000 daily rate
- 3+ BHK luxury apartments: ₹5,000-₹10,000+ daily rate
Operational Expenses: Mumbai vs. Kolkata
This is where the numbers get real. I often tell investors that revenue is vanity, but profit is sanity. Understanding operational costs is crucial for calculating true ROI. Here’s a comparative breakdown of monthly expenses for premium 3BHK properties:
| Expense Type | Mumbai (Premium, 3BHK) | Kolkata (Premium, 3BHK) |
| Maintenance | ₹10,000-₹20,000+ | ₹4,000-₹10,000 |
| Utilities | ₹5,000-₹10,000+ | ₹3,000-₹6,000 |
| Property Management | 8%-12% of rent (₹7,500-₹15,000) | 8%-12% of rent (₹1,600-₹3,000) |
| Cleaning | Usually included in maintenance | Usually included in maintenance |
Mumbai’s operational expenses are substantially higher, often 50-100% more than Kolkata for comparable properties. These recurring costs significantly impact overall investment returns and must be factored into ROI calculations.
HireaVilla: An Alternative for Luxury Properties
For luxury property owners looking for higher returns, HireaVilla offers a specialized platform focused on premium villas and holiday homes.
Operational Model:
- Listing Requirements: Properties must be premium villas meeting quality and safety standards, including strict guest vetting and check-in policies.
- Service Fees: Revenue-share model based on a commission percentage, with no upfront listing or annual fees.
- Management Services: Complete property management, including marketing, guest communication, dynamic pricing, cleaning, and maintenance.
- Cities of Operation: HireaVilla operates in 10 locations, primarily leisure and second-home markets: Goa, Lonavala, Alibaug, Karjat, Mahabaleshwar, Panchgani, Khandala, Igatpuri, Pawna, and Nashik.
- Revenue Advantage: HireaVilla claims to deliver 3-4x higher monthly revenues than Airbnb for luxury villas by targeting affluent guests, using personalized marketing, and encouraging longer, higher-value stays.
List your property with HireaVilla to maximize your investment returns while benefiting from their curated approach and premium positioning.
Research Methodology & Market Analysis
This analysis uses data from Airbtics occupancy projections, AirROI city-specific returns, and recent real estate studies. According to leading market analyst Vikram Mehta of PropertyTech India: “Mumbai and Goa will maintain their leadership positions through 2025, but we’re seeing accelerated growth in Chennai and Hyderabad where tech investment is creating sustained visitor demand.”
Case studies confirm these trends. For example, Priya S., who owns properties in both Mumbai and Bengaluru, reports: “My Mumbai apartment generates nearly 40% more revenue than my similarly-sized Bengaluru property despite higher operational costs. Location within each city remains the critical factor for profitability.” These real-life investor stories mirror conversations on online forums about profitable Airbnb cities in India, emphasizing the importance of micro-market selection.
Conclusion
Mumbai, Goa, and New Delhi remain India’s most lucrative Airbnb markets in 2025, with Chennai and Hyderabad showing promising growth. In all markets, traditional Airbnb hosting faces increasing pressure from more competition and platform fees. For those invested in the Indian Airbnb market, using niche platforms or focusing on luxury segments can be a game-changer in achieving sustainable returns.
For investors with luxury properties, platforms like HireaVilla offer significantly better earning potential with 3-4x higher monthly revenues compared to Airbnb for similar properties. List your property with HireaVilla to maximize your investment returns. By adopting these strategies, you can stay ahead of market shifts.
FAQs
1. Where is Airbnb most profitable in India?
Mumbai leads India’s Airbnb market with the highest average daily rate (₹4,339) and annual revenue (₹938,924), followed by Goa and New Delhi. Mumbai’s combination of business travel, tourism, and limited housing supply creates optimal conditions for short-term rental investments. When considering the top 10 most profitable Airbnb cities in India, Mumbai’s leadership remains unchallenged.
2. Which city is the most profitable for Airbnb hosts?
Globally, major tourism destinations like Bali, Cancun, and Barcelona often rank highest for Airbnb profitability. In India, Mumbai delivers the strongest returns, though Goa offers higher seasonal peaks during tourism months. The best places to start an Airbnb in India remain concentrated among these top cities, according to reports on the most profitable cities.
3. What is the 80/20 rule for Airbnb?
The 80/20 rule in Airbnb investing suggests that 80% of your profits will come from 20% of your investment decisions. This typically means focusing on prime locations within top markets rather than spreading investments across multiple cities, emphasizing quality over quantity. This strategy is highlighted in many online posts about profitable Airbnb cities in India.
4. Is Airbnb a good investment in India?
Airbnb can be profitable in India’s top markets with careful property selection and management. However, the average ROI is cooling in many cities due to increased competition. Luxury properties often perform better on specialized platforms like HireaVilla that can offer higher occupancy rates (35% vs. 10%) and nightly rates (₹18,000-₹25,000 vs. ₹12,000-₹15,000) than Airbnb. To secure the best location for an Airbnb and maximize returns, research is critical.
