India Short-Term Rental Market Review 2025: Revenue, Occupancy & Supply Growth

Written by: Jae Seok An, Founder, Airbtics
Published: January 22, 2026

India Short-Term Rental Market Overview 2025

Average Occupancy Rate i
40.35%
Average Annual Revenue i
₹488,203
Average Daily Rate (ADR) i
₹3,330
YoY Supply Growth i
48.58%
YoY Revenue Change i
-2.69%
Markets Analyzed
20

Number of Airbnb Listings Changes in India 2025

Which markets are experiencing rapid saturation?

A key consideration when entering a new short-term rental market is assessing whether it may become oversaturated. To evaluate this, we analyze the year-over-year supply change in Airbnb listings. The national average YoY supply change in India was 48.58% in 2025, indicating the overall growth trajectory of the market.

Markets with Largest Absolute Supply Increases in India

In absolute terms, Goa experienced the largest increase with +2,325 new listings added in 2025. This was followed by Bengaluru (+1,692 listings) and Mumbai (+910 listings).

Markets with Fastest Relative Growth in India

In relative terms, Chandigarh experienced the most significant growth, with 73.95% more supply added over the 12-month period in 2025. Other rapidly expanding markets include Hyderabad (+70.42%) and Varanasi (+66.41%).

Short-Term Rental Revenue Trend in India 2025, and Future Outlook for 2026

Does increased supply necessarily indicate market saturation?

To assess market saturation, we examine year-over-year revenue trends. A decline in revenue per listing typically indicates heightened competition and potential oversaturation. The India average YoY change in revenue was -2.69% in 2025, representing an increase from $6,011 in 2024 to ₹488,203 in 2025.

Top Markets Revenue Performance

Goa

₹723,426 → ₹679,948 (-6.01% YoY)
🏠
Best Property Type Small (Studio - 1BD) • Midscale ($$)
🌍
Top Guest Origin United Kingdom
✈️
International Guests (vs Domestic) 91.0%
💰
Average Daily Rate ₹3,922
📊
Occupancy Rate 47.0%
📅
Seasonality High seasonality

Bengaluru

₹395,081 → ₹380,661 (-3.65% YoY)
🏠
Best Property Type Small (Studio - 1BD) • Budget ($)
🌍
Top Guest Origin United States
✈️
International Guests (vs Domestic) 14.0%
💰
Average Daily Rate ₹2,086
📊
Occupancy Rate 49.0%
📅
Seasonality Low seasonality

Mumbai

₹974,962 → ₹944,934 (-3.08% YoY)
🏰
Best Property Type Large (4+BD) • Luxury ($$$)
🌍
Top Guest Origin None
✈️
International Guests (vs Domestic) N/A
💰
Average Daily Rate ₹4,423
📊
Occupancy Rate 58.0%
📅
Seasonality High seasonality

For more detailed revenue YoY change analysis by market, access the Airbtics dashboard to explore specific market performance metrics.

Easiest Markets for Hosts in India 2025

Markets with high occupancy rates provide hosts with greater booking consistency, while markets with high booking volumes offer expanded opportunities across various property types and sizes.

Highest Occupancy Rate Markets in India 2025

Mumbai recorded a year-round occupancy rate of 58.00%, which is among the highest in India. This was followed by Chennai (53.00%) and Bengaluru (49.00%).

Highest Booking Volume Market in India 2025

Markets with high booking volumes present additional advantages, as they offer diverse opportunities across various property types and price points. The market that recorded the highest booking volume in India is Goa, with approximately 1,692,340 nights booked in 2025.

Regulatory Landscape

We define a professionalized or strictly regulated market as one where over 50% of active Airbnb listings hold valid license information, indicating consistent enforcement and higher compliance. Markets below this threshold are considered unregulated or lenient.

In India, 0 out of 20 markets fall into the professionalized / strict regulation category. For detailed license compliance data and market-specific regulatory insights, the Airbtics dashboard provides the percentage of listings with valid licenses for each market, enabling investors to assess regulatory risk at a granular level.

Which India Markets Are Growing Healthily vs Overheating?

Understanding market saturation requires looking at both supply growth and revenue trends together. Markets are categorized by comparing their YoY supply and revenue changes against India's national averages. Markets where supply is growing faster than revenue (relative to national averages) may be approaching saturation, while markets with below-average supply growth but above-average revenue growth may present hidden opportunities.

Benchmark: Markets are categorized relative to India's national averages (Supply: 48.6%, Revenue: -2.7%). Markets above the national average are marked with ↑, while those below are marked with ↓.

🟢

Healthy Growth

Supply > avg, Revenue > avg
Expansion with demand keeping up

  • Varanasi Supply: +66.4% | Revenue: +8.0%
  • Dehradun Supply: +55.4% | Revenue: +6.2%
  • Rishikesh Supply: +50.4% | Revenue: +0.0%
🟡

Early Saturation

Supply > avg, Revenue ≤ avg
Competition rising

  • Chandigarh Supply: +74.0% | Revenue: -8.5%
  • Hyderabad Supply: +70.4% | Revenue: -13.6%
  • Gurgaon Supply: +64.9% | Revenue: -3.0%
  • Pune Supply: +59.4% | Revenue: -14.6%
  • Guwahati Supply: +52.1% | Revenue: -8.9%
🔵

Under-the-Radar

Supply ≤ avg, Revenue > avg
Hidden opportunities

  • Noida Supply: +47.8% | Revenue: +15.3%
  • Kochi Supply: +42.0% | Revenue: +5.8%
  • Jaipur Supply: +44.9% | Revenue: +2.9%
  • Manali Supply: +33.3% | Revenue: -0.1%
🔴

Declining

Supply ≤ avg, Revenue ≤ avg
Risky markets

  • Lonavala Supply: +38.0% | Revenue: -13.0%
  • Goa Supply: +30.8% | Revenue: -6.0%
  • New Delhi Supply: +41.3% | Revenue: -5.8%
  • Bhowali–Nainital Supply: +30.2% | Revenue: -4.2%
  • Kolkata Supply: +33.6% | Revenue: -4.0%
  • +3 more markets

For the latest updates of the market data in India, check out our Best Airbnb Markets in India.

Data methodology

All metrics are calculated using active short-term rental listings tracked weekly by Airbtics. Revenue, occupancy rate, ADR, and supply growth are estimated from historical booking calendars, listing activity, and proprietary aggregation models.

Source: Airbtics
Learn data methodology →

Cite this report

Airbtics (2026). India Short-Term Rental Market Review 2025: Revenue, Occupancy & Supply Growth. https://airbtics.com/short-term-rental-market-report-2025-india

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