Last updated on June 21st, 2023
Owning a beachfront property is a dream for the majority of people. If you are eager to make this come true by earning a passive income at the same time, then purchasing a property with a beautiful view of the sea is ideal in Dorset, UK!
Airbnb rental arbitrage in Dorset is preferred by investors who have a limited budget to purchase a property, which means you can do Airbnb by just renting it! However, the main question is: will Airbnb properties be profitable in that area?
Dorset boasts plenty of picturesque beaches and nearly 100 miles of rugged coastline, from Bournemouth and Weymouth to Swanage and the hugely popular Lulworth Cove and Durdle Door. Studies have shown that Dorset receives a whopping 364 more hours of sunny weather compared to other British counties so it’s not surprising that its many beaches are an attractive tourist destination.
Let’s not get carried away by a property’s design or its proximity to major tourist areas because the primary step is to determine profitability. In this article, we’ll discuss the metrics in order to gauge the best property investment, specifically when buying a property investment in Dorset, Shire County.
Purchasing a property investment in the United Kingdom is a complex task and requires a lot of analysis, of course, considering Airbnb rules in Dorset. But fret not! This article includes the best website recommendations for property investment, the prices and properties for sale in Dorset, along with each property type’s gross rental yield, cash-on-cash return, and annual revenue.
airbnb property for sale Dorset City Centre
Is Property Investment Profitable in Dorset Beach?
Since the UK has the fastest-growing property markets across the globe, there is a wide variety of profitable property investments offering higher yields. Using a short-term rental calculator, it was discovered that a 3-bedroom apartment in Dorset Beach can generate an annual revenue of £50,848 with a steady occupancy rate of 53% and a nightly rate of £216.
airbnb property for sale Dorset City Centre
Profitable Properties for Sale in Dorset Beach
Finding the best properties that have the potential to produce high yields and capital growth are certainly some of the preferences of major investors. It’s always best to ask for assistance from real estate agents to access exclusive and unique properties during the development stage.
At the same time, it’s even better when a property investor like you conducts research about predicted growths and market forecasts. Here are some of the profitable properties in Dorset along with the calculated gross rental yield, cash-on-cash return, and annual revenue:
13 Durley Gardens, Bournemouth
1. Studio-type Property for Sale Dorset
Only a short drive to Bournemouth Town Centre
Asking Price: £115,000
| GROSS RENTAL YIELD | 12.80% |
| ANNUAL REVENUE | £14,721 |
| CASH ON CASH RETURN | 12.64% |
Parkstone Road, Poole Park, Poole, Dorset, BH15
2. 1-Bedroom Property for Sale Dorset
0.7 miles to Parkstone (Dorset)
Asking Price: £70,000
| GROSS RENTAL YIELD | 25.36% |
| ANNUAL REVENUE | £17,751 |
| CASH ON CASH RETURN | 50.31% |
Ocean View 3, Littlesea, Weymouth, Dorset, DT4
3.2-Bedroom Property for Sale Dorset
Weymouth (1.9mi.)
Asking Price: £99,950
| GROSS RENTAL YIELD | 25.42% |
| ANNUAL REVENUE | £25,408 |
| CASH ON CASH RETURN | 50.49% |
4. 3-Bedroom Property for Sale Dorset
Upwey Station 0.8 miles
Asking Price: £130,000
| GROSS RENTAL YIELD | 24.96% |
| ANNUAL REVENUE | £25,408 |
| CASH ON CASH RETURN | 49.12% |
Grove Road, Portland, Dorset, DT5
5. 4-Bedroom Property for Sale Dorset
Weymouth Station is 4.6 miles
Asking Price: £200,000
| GROSS RENTAL YIELD | 25.24% |
| ANNUAL REVENUE | £50,476 |
| CASH ON CASH RETURN | 49.95% |
Conclusion
Since Airbnb is rapidly increasing and constantly changing for each city in the world, it is crucial to make decisions based on wild guesses. The data points mentioned in this article for Dorset such as Airbnb occupancy rates, annual revenue, and average daily rate should be the primary basis before investing in a property.
Hence, if the data presented above has given you ideas to boost your strategic pricing plan for your business, then an Airbnb rental arbitrage calculator is certainly what you need for success in the long run. It’s a fact that some of the STR investors are also considering Airbnb Rental Arbitrage, but they still need to have a reliable data tool on which to base their conclusions!
As we live in a digital era, an accurate data analytics tool can help your business stand out among your surrounding competitors and benchmark your property by tracking the occupancy rates of competing listings in your preferred city.
