Entering the short-term rental market can be a highly profitable venture if approached with careful planning and research. One of the primary challenges landlords face is selecting the right geographical area to invest in. A recent analysis by AirDNA highlights promising markets throughout Asia where vacation rentals can yield substantial returns.

Key Highlights of the Market Analysis

AirDNA’s report focuses on the ten largest countries in Asia, specifically evaluating short-term rentals in markets that feature at least 20,000 available properties. The following countries were analyzed: Japan, Thailand, United Arab Emirates, India, Indonesia, South Korea, Philippines, Malaysia, Vietnam, and Saudi Arabia.

Top Ten Asian Markets for Short-Term Rentals

Below are the leading markets ranked by their average annual revenue from short-term rentals:

1. Hakuba, Japan

   Average Annual Revenue: $61,813

   Average Daily Rate: $413.12

   Occupancy Rate: 50.9%

   Renowned for its exceptional skiing conditions, Hakuba is a picturesque village nestled in the Japanese Alps. It gained international recognition during the 1998 Nagano Winter Olympics.

2. Onna, Japan

   Average Annual Revenue: $44,737

   Average Daily Rate: $248.90

   Occupancy Rate: 54.0%

   Sitting on the coast of Okinawa, Onna is famous for luxury resorts, pristine beaches, and vibrant coral reefs.

3. Kyoto, Japan

   Average Annual Revenue: $43,882

   Average Daily Rate: $181.28

   Occupancy Rate: 69.7%

   As a historic city with over a millennium of history as Japan’s capital, Kyoto attracts visitors with its temples, traditional architecture, and cultural heritage.

4. Ko Samui, Thailand

   Average Annual Revenue: $43,465

   Average Daily Rate: $311.44

   Occupancy Rate: 58.9%

   This tropical island is celebrated for its luxurious resorts, serene beaches, and various cultural attractions.

5. Tokyo, Japan

   Average Annual Revenue: $42,829

   Average Daily Rate: $160.09

   Occupancy Rate: 78.2%

   Tokyo, the capital of Japan and the world’s most densely populated city, draws millions with its rich culinary scene, historical sites, and vibrant shopping districts.

6. Hakata-ku, Japan

   Average Annual Revenue: $35,842

   Average Daily Rate: $140.81

   Occupancy Rate: 72.6%

   Known for its cultural festivals and delicious ramen, Hakata-ku is a ward in the city of Fukuoka, attracting many visitors.

7. Chuo-ku, Japan

   Average Annual Revenue: $31,642

   Average Daily Rate: $153.18

   Occupancy Rate: 61.1%

   This central Tokyo ward is recognized for its commercial activities, upscale shopping, and vibrant nightlife.

8. Phuket, Thailand

   Average Annual Revenue: $28,381

   Average Daily Rate: $223.05

   Occupancy Rate: 59.6%

   Phuket, Thailand’s largest island, is a hotspot for tourism known for its natural beauty and lively entertainment scene.

9. Dubai, UAE

   Average Annual Revenue: $27,798

   Average Daily Rate: $205.57

   Occupancy Rate: 59.5%

   As a global city renowned for its luxury and architectural marvels, Dubai is becoming an increasingly popular destination for tourists and expatriates alike.

10. Assagao, India

    Average Annual Revenue: $26,696

    Average Daily Rate: $224.52

    Occupancy Rate: 45.5%

    Located in Goa, Assagao is a quaint village famous for its charming colonial architecture and vibrant local culture.

If you’re interested in maximizing your income potential with short-term rentals, consider evaluating these markets. They offer some of the highest average annual revenues for property owners. Being strategic in your investment choices could lead to significant financial success in the growing rental landscape.