Which Property Types Thrive on Airbnb?

Your spare room can become a goldmine.

Airbnb completely kicked hotels in the a**  revolutionized the hospitality industry, giving everyone and anyone a chance to make passive income — with a mere room or a full blown apartment.

The latter part of the previous sentence begs the question — which property types actually make the most money on Airbnb?

That’s exactly what you’ll discover in this detailed guide.

Guest Preferences In the Short Term Rental Market In 2025

Imagine you’re a solo traveler, scrolling through Airbnb — looking for the perfect spot for your weekend getaway. 

Photo by: Vecislavas Popa

What catches your eye? What makes you click “Book Now”?

Recent studies by ScienceDirect show that Airbnb guests value unique experiences and the “home-away-from-home” feel — over traditional hotel stays. 

Yet, some property types on Airbnb remain in higher demand than others…why?

The answer lies in the market dynamics. Just like how coffee shops thrive on busy street corners, certain vacation rental properties boom in specific locations and cater to particular guest preferences.

Key factors influencing guest choices in vacation rentals include:

1. Unique features or experiences
2. Cleanliness and safety
3. Location convenience
4. Amenities offered
5. Value for money

The Best Performing Airbnb Property Types In 2025

1. Entire Homes & Apartments

Entire homes and apartments have always been a staple on Airbnb — and for good reason. 

Photo by: Demhi Lydia

They offer the privacy, space, and home-away-from-home feel that many travellers crave. And as a result, they consistently outperform other property types and have a higher earning potential. 

In Dubai, these properties boast an average occupancy rate of 65% and can earn you anywhere from $100 up to $250 per night. Even more — depending on location and amenities.

Entire apartments perform well in popular vacation destinations, and often range from 3 beds, 1 bedroom, and 2 bedroom apartments.

However, the success of this Airbnb property type often depends on the overall guest experience provided. You’ll need to create a welcoming — yet functional environment. Your marketing must also highlight unique features to differentiate from hotel offerings.

Why Entire Apartments are Great for Guests

• Complete privacy (no awkward bathroom encounters with strangers)
• Full access to amenities
• Ideal for families or groups

2. Private Rooms in Shared Spaces

Private rooms are super affordable – for guests, and they also provide a low barrier to entry for hosts. This property type can earn hosts anywhere from $20…up to $100 per night.

Since private rooms cost less than outrightly buying a new apartment, they provide an opportunity to test the waters of Airbnb hosting.

Photo by: Mikhail Nilov

Why Shared Spaces are Great for Airbnb

• Ideal for extrovert guests and provides opportunity for local interactions
• Lower price point for budget travelers
• Often located in central areas

However, the earnings from shared apartments are significantly lower than entire apartments. There’s also less privacy for both hosts and guests, and a high chance of conflict.

Homevy Tip: Clearly communicate shared and private spaces in your listing to set appropriate guest expectations.

3. Unique Stays

Unique stays command premium rates on Airbnb, and they’ve grown popular in 2025.

Photo by: Airbnb

Unique Airbnb stays include treehouses, tiny homes, houseboats, converted airplanes, micro-apartments, container condos, and many more.

These compact living spaces appeal to minimalist travellers and those looking to reduce their environmental footprint. However, these apartment types require clever design solutions to maximize space efficiency and guest comfort.

In Dubai, distinctive properties like desert glamping tents can achieve occupancy rates of up to 80% during peak seasons, with nightly rates of $200 or more.

Why Unique Stays are Great for Short Term Rentals

• Offers one-of-a-kind experiences and higher nightly rates
• Appeals to adventure-seekers and experience-driven travelers
• Generates word-of-mouth marketing

However, no thanks to the investment that goes into making Airbnb unique stays truly unique, it can be too expensive for a start. It may also require special maintenance.

Homevy Tip: If you’re hosting a unique stay, provide multi-functional furniture to enhance the guest experience. Also, marketing for these properties should focus on the novelty factor and the opportunity to experience minimalist living.

What Factors Make Vacation Rentals Successful?

1. Location: Neighbourhoods matter. Properties near popular attractions, business districts, or transport hubs typically see higher occupancy rates. Listings within 1 mile of city centers earn more than those further out.
2. Stellar Amenities: Wi-Fi that’s faster than Usain Bolt? Check. Memory foam mattress that hugs you to sleep? Double-check. Top-notch amenities can justify higher rates and lead to glowing reviews. High-speed Wi-Fi, well-equipped kitchens, and comfortable workspaces are increasingly important. Properties with these features often command 15-20% higher nightly rates.
3. Instagrammable Aesthetics: Everyone’s on social media – so a picture-perfect space can be your best marketing tool. Think stunning decor and breathtaking views. Also ensure that the pictures you put up to show your place — are professional enough. Listings with professional photos receive more bookings and can charge higher nightly rates.
4. Great Reviews: Properties with an average rating of 4.8+ have higher occupancy rates than those with lower ratings.
5. Responsive Hosting: Being Johnny-on-the-spot with guest communication can set you apart. Quick responses and proactive problem-solving make guests feel valued. Hosts who respond to inquiries within an hour are more likely to get a booking than those who take longer.

Actionable steps to make your Holiday Homes successful:

• In your listing on OTAs, highlight your property’s proximity to key attractions
• Create at least one Instagram-worthy spot in your space
• Hire a professional photographer for your listing photos
• Invest in quality amenities that align with your target guests’ needs
• Set up instant notifications for guest messages and respond within an hour or less
• Create a detailed cleaning routine (or hire professionals) to ensure positive reviews

What Are The Metrics To Measure Holiday Homes Performance?

Photo By: RDNE Stock Project

1. Occupancy Rate: This is the percentage of days your property is booked out of the total available days. Formula: (Booked Nights / Available Nights) x 100.  Example: If your place is booked for 24 nights out of 30 available nights: (24 / 30) x 100 = 80% occupancy rate.

2. Average Daily Rate (ADR): This is how much your property earns per day – when it’s booked. It’s like your property’s daily salary. Formula: Total Revenue / Number of Booked Nights. Example: If you earned $3000 over 20 booked nights: $3000 / 20 = $150 ADR.

3. Revenue Per Available Room (RevPAR): Here’s the ultimate scorecard for your property’s performance. It combines occupancy and rate to show how much you’re earning per available night. Formula: Total Revenue / Total Available Nights (or Occupancy Rate x ADR). Example: Using the numbers above: ($3000 / 30) = $100 RevPAR or (80% x $150) = $120 RevPAR.

7 Quick Tips for Optimizing Your Vacation Rental Property

Ready to take your Airbnb game to the next level? Here are some straight-to-the-point implementation steps:

1. Set up a dynamic pricing tool this week
2. Schedule a professional photo shoot as well
3. Create a comprehensive digital house manual
4. Develop a standard welcome package for guests
5. Set up automated messaging for common inquiries
6. Plan seasonal listing updates (photos, description) for the year
7. Rewrite your listing title and description to highlight unique selling points

Emerging Trends in Airbnb Property Types

Stay ahead by considering these emerging trends:

1. Workation-friendly spaces: With remote work on the rise, properties with dedicated workspaces, high-speed internet, and ergonomic furniture are gaining more popularity than ever.
2. Eco-conscious stays: Sustainability is more than a “cliche” term. Eco-conscious travelers often seek properties with green features. Use energy-efficient appliances and sustainable materials to set your property apart.
3. Smart homes: Voice-activated everything, from lights to coffee makers, is the future. Properties with smart home features (e.g., keyless entry, smart thermostats, voice-activated devices) can enhance the guest experience and potentially justify higher rates.
4. Wellness-focused properties: With increasing emphasis on health and wellbeing, properties offering fitness equipment, meditation rooms, yoga decks, or air purification systems may see higher demand.

FAQs

1. How Can I Find the Best Airbnb Property In the Market?

To find the best Airbnb property in your market, thoroughly research locations and determine the optimal number of bedrooms. Consider if an entire house or condo is more suitable, focusing on passive income potential rather than just equity building. Utilize relevant data to compare property types and analyze their return on investment in your specific area. Factor in local regulations, property management needs, seasonal demand, and nearby attractions. The ideal Airbnb property balances profitability, guest appeal, and operational efficiency within your target market.

2. How Much Can I Realistically Earn on Airbnb?

Earnings vary widely based on property type, location, and seasonality. In Dubai, entire homes can earn anywhere from $100-$350 per night, while private rooms might fetch $50-$100. Well-managed properties in prime locations could potentially earn $2,000-$8,000 per month, but this can fluctuate based on factors like tourism and local events.

3. What’s The Best Way To Price My Airbnb? 

Start by researching similar properties in your area. Use pricing tools to adjust rates based on demand, seasons, and local events. Regularly review and adjust your pricing strategy based on your occupancy rates as well.

4. Are There Legal Considerations For Vacation Rentals In Dubai?

Yes, Dubai has specific regulations for short-term rentals. Hosts must obtain a license from the Department of Tourism and Commerce Marketing (DTCM) and comply with certain standards. Always check the latest regulations as they can change.

Outro Thoughts

Airbnb success hinges on choosing the right property type, understanding the market (especially YOUR specific location market) and providing exceptional guest experiences. 

Whether you’re considering putting a spare room on Airbnb or investing in a vacation property, be truly informed before making a decision.

Your next step is to assess your current or potential property against what we’ve discussed in this blog. Again (and again) — consider your local market, target guests, and YOUR personal hosting goals.

And on a final note… the most successful short term rental hosts are those who continually refine their offering based on guest feedback and what the market is saying.

Xoxo, Gossip Homevy girl.