Estonia is a stunningly beautiful Baltic country, sung in Scandinavian sagas and legends. Picturesque northern nature, ancient cities, and a unique atmosphere attract tourists from different countries. So if you want to start an Airbnb business in Estonia, you have every chance to succeed. The main thing is to choose the right location for buying real estate, build a business strategy, and optimize everyday tasks. Special services (for example, Hostyapp) can help you with this.
Best Airbnb Investment Cities in Estonia
A good choice of location is one of the factors for the success of a business for short-term rental of real estate. The following indicators will help you assess the prospects of buying real estate in a particular city: the number of active rentals, average daily rate, occupancy rate, and revenue. It will help you evaluate the level of competition, the level of future profits, and the payback period of investments.
Tallinn is the capital of Estonia, the most famous city with a rich history, beautiful architecture, and beautiful nature. Majestic towers, narrow streets, medieval buildings, and modern museums make you fall in love at first sight. People come here both from the Baltic countries and from all over Europe.
- Average Daily Rate (ADR): $76
- Occupancy Rate (OR): 68%
- Revenue: $1,022
- Active Rentals: 1,642.
Most often in Tallinn, tourists rent houses with one bedroom. Parking is available in 48% of houses, and air conditioning in only 18%. But heating and Internet are in most homes. The housing price here is low, so it would be great to buy cozy budget apartments.
Translated from Estonian, the name of this town means "Cranes City." Until 1917 it was called Ahrensburg, "Eagle's Castle." Here is the port of Roomassaare, the Bishop's Castle, ancient churches, bridges, and observation towers. An excellent and cozy place where you can build your profitable Airbnb business.
- ADR: $81
- OR: 40%
- Revenue: $748
- Active Rentals: 84.
This city also has the highest demand for one-bedroom houses. Internet, heating, kitchens, and parking are available in most homes, but a pool and hot tub are rare. The peak of the tourist season is in July, but in February, the number of tourists drops significantly.
Pärnu is the most famous spa town in Estonia. It is located in the southwest of the country, on the coast of the Baltic Sea. Excellent natural beaches, mild climate, and beautiful nature have made this city a magnet for vacationers. Purchasing a house here would be an excellent investment.
- ADR: $86
- OR: 38%
- Revenue: $710
- Active Rentals: 301.
The majority of Airbnb properties in Parnu are 1-bedroom homes (56%), but studios (11%) and 2-bedroom homes (21%) are also common. Parking and heating are available in 80% of houses, while air conditioning is only in 34%.
In the past, this city on the Emajygi River belonged to many states: Kievan Rus, the Novgorod Republic, the Commonwealth, the Kingdom of Sweden, etc. Its rich history, beautiful architectural monuments, and unique atmosphere that combines antiquity and modernity attract many people. At the same time, simple, inexpensive housing is valued here, so the initial investment will be low.
- ADR: $67
- Revenue: $677
- Active Rentals: 358.
Small cozy houses with heating, Internet, and a kitchen are also popular in Tartu. Parking is available in 73% of houses, but a pool and a hot tub are a rarity. By the way, you can take it into service.
Võru is a beautiful city that combines ancient buildings and modern technologies. Beautiful nature, wooden houses, and picturesque embankments attract those who love a quiet holiday away from megacities.
- ADR: $100
- OR: 26%
- Revenue: $676
- Active Rentals: 76.
Võru is a family-friendly destination, so while 1-room houses are in the highest demand, 2-room and 3-room homes are also popular. More than 96% of houses have parking. Heating is available in 70%, and the Internet in 66%.
If you want to start an Airbnb business in Paldiski, you definitely won't have many competitors: as of February 2023, there are only seven active properties for short-term rentals. The picturesque shores of Paldiski attract eco-tourists, so people often come here to relax at a campsite and not in a hotel or apartment. It is where you can relax in silence and tranquility alone with nature — an excellent location for a family vacation.
- ADR: $68
- Revenue: $586
- Active Rentals: 7.
Half of the vacation rentals are at home. Half are private rooms. The main amenities include parking, heating, and the Internet. But even without them, it is quite possible to do without them since eco-tourism lovers are not too demanding of the availability of super-comfortable housing.
This picturesque town is located in northwestern Estonia. The first settlements appeared here in the 13th century. Many buildings from those times have been preserved in the city, which is the most valuable historical monument. Here are the famous Watch Tower, the railway museum, and ancient churches. Cultural monuments and the restrained beauty of northern nature attract many tourists here. And a small number of properties will allow you to avoid high competition and build a truly successful Airbnb business.
- ADR: $84
- Revenue: $488
- Active Rentals: 67.
In 88%, a house is rented out for short-term rent. In 12% - a private room. Parking, Internet, and heating are available almost everywhere. Most tourists come to Haapsalu in July.
Estonia is a country where there are many beautiful corners and ancient cities. Real estate here is inexpensive: Estonians love restraint in everything, and you can hardly find luxury villas here. Therefore, you will attract customers even if you decide to purchase a small cozy house. The main thing is to be a hospitable Airbnb Host and take care of the comfort of your guests. In addition, there are only a few active properties for short-term rental, so you can not worry about high competition.