Last updated on September 21st, 2023
airbnb property for sale London City Centre
London is famous for Big Ben, Buckingham Palace, British Museum, and Tower Bridge. Known for its rich history, London certainly has a lot of exciting offers for property investors. Before deciding to purchase a property, it’s ideal to learn that Airbnb rental arbitrage in London is a popular option for other investors with a minimum budget. Since it does not require you to purchase a property, it’s still best to learn about buying a property for Airbnb and making sure it’s profitable.
When looking for a property for Airbnb, you should not only look at a property’s fascinating architectural design or its close proximity to major tourist areas but also determine its profitability. It’s also good to know that Airbnb rules in London require hosts to get a planning permit for those who plan to operate for more than 90 days. In this article, we’ll discuss the metrics in order to gauge the best property investment in London, which is an important step when buying a property investment in the UK.
This includes the best website recommendations for property investment, defining property gross rental yield, cash-on-cash return, and annual revenue, along with some of the most ideal and profitable properties according to their location. While Airbnb occupancy rates in London differ from one neighbourhood to another, an average host can earn up to £39,754 for a 1-bedroom apartment (condo) with an occupancy rate of 83%.
Is Property Investment Profitable in London City Centre?
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 an Airbnb calculator, it was discovered that a 3-bedroom apartment in London City Centre can generate an annual revenue of £57,677 with a steady occupancy rate of 65% and a nightly rate of £125.
airbnb property for sale London City Centre
Looking for profitable Airbnb locations? Check out the best areas to invest in London!
Profitable Properties for Sale in London City Centre
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 London City Centre along with the calculated gross rental yield, cash-on-cash return, and annual revenue:
Flat A, 33 Bedford Grove, Eastbourne, East Sussex BN21
1. Studio-type Property for Sale London
0.4 Miles to Eastbourne
Asking Price: £70,000
| GROSS RENTAL YIELD | 25.36% |
| ANNUAL REVENUE | £17,754 |
| CASH ON CASH RETURN | 50.32% |
2. 1-Bedroom Property for Sale London
0 miles to Tottenham Hale
Asking Price: £100,000
| GROSS RENTAL YIELD | 26.23% |
| ANNUAL REVENUE | £26,234 |
| CASH ON CASH RETURN | 52.93% |
Brownlow Road, West Ealing, London W13
3. 2-Bedroom Property for Sale London
0.3 miles to West Ealing
Asking Price: £136,250
| GROSS RENTAL YIELD | 24.98% |
| ANNUAL REVENUE | £34,030 |
| CASH ON CASH RETURN | 49.16% |
4. 3-Bedroom Property for Sale London
0.5 miles to Island Gardens
Asking Price: £170,000
| GROSS RENTAL YIELD | 24.51% |
| ANNUAL REVENUE | £41,664 |
| CASH ON CASH RETURN | 47.76% |
Bell Farm Lane, Minster On Sea, Sheerness ME12
5. 4-Bedroom Property for Sale London
3.8 miles to Queenborough
Asking Price: £275,000
| GROSS RENTAL YIELD | 24.79% |
| ANNUAL REVENUE | £68,161 |
| CASH ON CASH RETURN | 48.59% |
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 London such as Airbnb occupancy rates, annual revenue, and average daily rate should be the primary basis before investing in a property. Yet, we also recommend exploring other areas to invest in property in the UK, so that you won’t miss out on better opportunities!
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.
