Airbnb Market Analytics, Statistics and Data in Reykjavik, Capital Region, Iceland
Last updated: 2025-01-31
Looking to make more money with hosting or rental arbitraging Airbnbs, short-term rentals, vacation rentals in Reykjavik? AirROI have just the data insights! Over the last twelve months from February 2024 to January 2025, we've uncovered key trends and opportunities that successful hosts are leveraging in Reykjavik:
How much do Airbnb hosts make on average per month in Reykjavik?
The short-term rental market in Reykjavik shows distinct revenue patterns across different property tiers. Our analysis reveals that successful properties combine strategic pricing with quality management to maximize earnings potential. Market data demonstrates clear revenue differentiation among properties:
- Typical properties (median) earn $3,546 per month
- Strong performing properties (top 25%) make $5,872 or more
- Best-in-class properties (top 10%) achieve $9,259+ monthly
- Entry-level properties (bottom 25%) typically earn around $1,835
Revenue Variations by Month
Occupancy Rates Throughout the Year in Reykjavik
The market in Reykjavik shows distinct occupancy patterns influenced by seasonal trends and local dynamics. Properties that maintain high guest satisfaction scores and implement strategic pricing consistently achieve stronger occupancy rates. Current market data shows:
- Typical properties (median) maintain 52% occupancy rates
- Strong performing properties (top 25%) achieve 77% or higher
- Best-in-class properties (top 10%) reach 90%+occupancy
- Entry-level properties (bottom 25%) average around 24%
Occupancy Variations by Month
Average Daily Rates Seasonal Trends in Reykjavik
Daily rates in Reykjavik vary based on seasonality, property quality, and market dynamics. Properties that effectively balance competitive pricing with strong amenities typically command higher rates. Market analysis shows the following rate structure:
- Typical properties (median) generate $197 per night
- Strong performing properties (top 25%) secure $284 or more
- Best-in-class properties (top 10%) pull in $418+ per night
- Entry-level properties (bottom 25%) earn around $140
Daily Rate Variations by Month
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Seasonality patterns in Reykjavik
Peak Season (August, June, July)
- Revenue peaks at $5478.34 per month
- Occupancy rates reach 60.96%
- Daily rates average $268.80
Shoulder Season
- Revenue averages $4487.43 per month
- Occupancy maintains 50.70%
- Daily rates hold at $238.93
Low Season (December, November, January)
- Revenue drops to $2962.97 per month
- Occupancy decreases to 37.06%
- Daily rates adjust to $217.87
Is it still profitable to do Airbnb in Reykjavik in 2025?
Yes! Reykjavik demonstrates moderate seasonality with good off-peak opportunities, featuring a healthy occupancy rate of 51% and strong monthly revenue averaging $4487 and As a mature market with 1895 active listings, there's strong demand despite the competition. There's also room for profit through rental arbitrage strategies, if you can identify competitively priced properties. To maximize your return on investment, consider employing the following strategies:
Peak Season Strategy
- Implement premium seasonal pricing strategies
- Set longer minimum stay requirements during high-demand periods
- Enforce stricter cancellation policies
Shoulder Season Strategy
- Maintain competitive market-based pricing
- Offer moderate-length stay incentives
- Target a mix of leisure and business travelers with flexible booking terms
- Focus on weekend getaway packages and mid-week business traveler promotions
Low Season Strategy
- Adjust pricing to remain competitive in the market
- Target different guest segments (business travelers, long-term stays, holiday visitors, event attendees, remote workers)
- Create targeted promotional campaigns to drive occupancy
Top Places to Start Airbnb in Reykjavik
| Area | Why Choose This Area | Key Attractions |
|---|---|---|
| Downtown Reykjavik | The heart of the capital, bustling with life, restaurants, and shops. A prime location for tourists to experience Icelandic culture and nightlife. | Harpa Concert Hall, Laugavegur shopping street, Sun Voyager, National Museum of Iceland, Hallgrímskirkja |
| Reykjavik Old Town | A historic area filled with charming buildings, cafes, and galleries. Perfect for those seeking a quaint, picturesque Icelandic experience. | Reykjavik Art Museum, National Gallery of Iceland, City Hall, Austurvöllur Park, Alþingishúsið (Parliament House) |
| Vesturbær | A residential area known for its cozy atmosphere and proximity to the sea. Popular among families and those looking for a quieter stay. | Vesturbæjarlaug (local swimming pool), Sundhöllin Swimming Pool, Einar Jónsson Museum, Grótta Lighthouse, Tjörnin (The Pond) |
| Kopavogur | Just outside Reykjavik, this suburb offers a mix of local life and access to nature. Ideal for families and those looking for a more peaceful retreat. | Kopavogur Swimming Pool, Bjarni Fríman's House, Kopavogur Art Museum, Heiðmörk Nature Reserve, Kopavogur Center |
| Laugardalur | Known for its parks and thermal pools, Laugardalur is great for outdoor enthusiasts and families who enjoy recreation and nature. | Laugardalslaug (geothermal pool), Reykjavik Botanical Gardens, Laugardalur Park, Family Park and Zoo, Horse riding tours |
| Grandi | A revitalized harbor area now home to trendy cafes and boutiques. Attractive for visitors wanting to experience the new wave of Reykjavik's culture. | Grandi Mathöll (food hall), Reykjavik Maritime Museum, Sægreifinn Seafood Grill, Whale Watching Tours, Harbor views |
| Árbær | A suburban area with a rich history and a mix of modern living. Great for families or those looking to explore Reykjavik's surroundings. | Árbæjarsafn (open-air museum), Árbær Park, Kopavogur Golf Club, Reykjavik Art Museum Ásmundarsafn, Local markets |
| Seltjarnarnes | A scenic area known for its coastal views and peaceful atmosphere. Ideal for relaxation and nature walks yet close enough to Reykjavik. | Gardingur Park, Seltjarnarnes Peninsula, Reykjavik Nature Reserve, Lighthouse Views, Scenic bike paths |
Do you need a license for Airbnb in Reykjavik?
We recommend checking directly with Reykjavik's local government regarding short-term rental licensing requirements. Current market data shows limited licensing information (16% of listings), making it essential to verify current regulations before starting your Airbnb business.
Top Performing Airbnb Properties in Reykjavik
Luxurious Villa in Downtown Reykjavik
Entire Place • 6 bedrooms
*B14 - Luxury Penthouse Downtown*
Entire Place • 5 bedrooms
B14 - Unique apartment down town for 18Persons
Entire Place • 5 bedrooms
Spacious 3BR apartment with 2 bathrooms 1003
Entire Place • 3 bedrooms
Six bedroom Luxury Apartments in the same house.
Entire Place • 6 bedrooms
Massive Villa in Downtown Reykjavík with a Sauna
Entire Place • 6 bedrooms
Top Performing Professional Hosts in Reykjavik
| Host Name | Properties | Grossing Revenue | Stay Reviews | Avg Rating |
|---|---|---|---|---|
| David Karl | 117 | $6,932,803 | 5512 | 4.24/5.0 |
| Phil | 16 | $1,962,643 | 1008 | 4.51/5.0 |
| Heimaleiga | 38 | $1,771,780 | 4150 | 4.70/5.0 |
| Bjarni | 9 | $1,006,736 | 386 | 4.80/5.0 |
| Arni | 12 | $962,188 | 5770 | 4.95/5.0 |
| Gudni | 20 | $852,709 | 667 | 3.85/5.0 |
| Kristján | 16 | $848,660 | 276 | 2.73/5.0 |
| B14 | 11 | $819,209 | 407 | 4.52/5.0 |
| Thora | 4 | $808,929 | 455 | 4.94/5.0 |
| Kristján And Steinunn | 6 | $771,190 | 333 | 4.88/5.0 |
Additional analytics on vacation rental, real estate, short term rental data in Reykjavik
AirROI also have other key metrics and comprehensive data for your vacation rental, real estate needs. Go explore the advanced metrics that can help you make informed decisions:
Room Type Distribution
Property Type Distribution
Key Insights
- Market dominated by entire home listings (83.8%), with apartment & condo and house properties comprising 89.7% of inventory
- Untapped potential in outdoor & mobile, others, unique stays segments (2.5% combined)
Room Capacity Distribution
Analysis of 1,895 properties in Reykjavik shows that 1 bedroom properties are most prevalent, making up 45.5% of the market. The market tends to favor smaller properties, with 1 bedroom and 2 bedrooms together representing 71.3% of all listings.
Key Insights
- Most common: 1 bedroom (45.5%)
- Least common: 5+ bedrooms (2.5%)
- Market concentration: 71.3% in top 2 sizes
- Market skew: Favors smaller properties
Guest Capacity Distribution
Analysis of 1,895 properties in Reykjavik reveals that 2 guests properties dominate the market, representing 28.6% of all listings. The average property accommodates 3.6 guests, with a clear trend towards larger guest capacities. Properties accommodating 2 guests and 4 guests make up 55.7% of the market.
Key Insights
- Most common capacity: 2 guests (28.6% of market)
- Least common capacity: 1 guest (1.2% of market)
- Average guest capacity: 3.6 guests per property
- Market concentration: 55.7% in top 2 capacity sizes
- Market segmentation: Predominantly larger guest capacities
Booking and Availability Patterns
Available Days Distribution
Booked Days Distribution
Among 1,895 properties in Reykjavik, the most common availability pattern is 271-366 days (39.3% of properties). For actual bookings, properties most frequently secure bookings for 91-180 days (27.7% of properties).
Key Insights
- Most common availability window: 271-366 days (39.3%)
- Most common booking duration: 91-180 days (27.7%)
- Properties with high availability (180+ days): 66.5%
- Properties with long-term bookings (180+ days): 34.7%
Minimum Stay Distributions
1 Night
409 listings
24.6% of total
2 Nights
430 listings
25.9% of total
3 Nights
377 listings
22.7% of total
4-6 Nights
239 listings
14.4% of total
7-29 Nights
40 listings
2.4% of total
30+ Nights
167 listings
10% of total
Key Insights
- Short stays (1-2 nights) dominate the market at 50.5%
- Mid-length stays (4-6 nights) represent 14.4% of listings
- Monthly+ stays (10%) suggest a stable extended-stay market
- High market flexibility with 73.2% accepting 3 nights or less
Recommendations
- Set minimum stays between 2-3 nights to align with market standards
- Adjust minimum stays seasonally based on demand patterns
- Consider monthly stay discounts to capture the growing extended-stay market
- Implement different minimum stays for weekends vs. weekdays
Cancellation Policy Distribution
Super Strict 30 Days
11 listings
0.7% of total
Super Strict 60 Days
4 listings
0.3% of total
Flexible
378 listings
23.8% of total
Moderate
602 listings
37.9% of total
Firm
317 listings
19.9% of total
Strict
278 listings
17.5% of total
Key Insights
- Moderate is the preferred policy at 37.9% of listings
- Guest-friendly policies (Flexible & Moderate) dominate at 61.7% of the market
- Strong market consensus around Moderate policies
- Super Strict 60 Days policies are least common at 0.3% of listings
Recommendations
- Consider starting with a Moderate policy to align with market preferences
- Strong market preference for Moderate policies suggests this should be your baseline
- Consider generous cancellation terms as a competitive advantage
Booking Lead Time Trends
Key Insights
- Peak booking lead times occur in Jun, Jul, May, averaging 93 days
- Shortest booking windows are in Aug, Feb, Jan, averaging 64 days
- Summer shows the longest average booking window at 85 days, while Winter has the shortest at 65 days
Recommendations
- Implement dynamic pricing strategies for Summer bookings at least 85 days in advance
- Consider early bird discounts during Winter to encourage longer lead times
- Focus on last-minute booking promotions during Aug-Jan when lead times are shortest
Popular Airbnb Amenities in Reykjavik
Below is the distribution of amenities across listings in Reykjavik:
Traveler Demographics
Key Insights
- Domestic travelers make up 0.8% of total guests, indicating a mostly international-driven market.
- Primary international markets: United Kingdom (13.1%) and Canada (8.5%)
- English is the top language at 66.4%, followed by Spanish (11.4%)
- Notable demographic segment in <=1950s (Pre-1950s (Silent Gen)) at 5.2%
Recommendations
- Target marketing campaigns for New York and London markets
- Develop localized content for United Kingdom and Canada
- Prioritize English and Spanish language support
- Tailor experiences for Pre-1950s (Silent Gen) while maintaining broad age appeal
- Implement seasonal promotions aligned with key market travel patterns
Nearby Markets
Explore short-term rental performance in markets surrounding Reykjavik. These nearby markets offer diverse opportunities for property investors and hosts:
| Market | Properties | Monthly Revenue | Daily Rate | Occupancy |
|---|---|---|---|---|
| Kjósarhreppur | 18 | $8,936 | $532.26 | 62% |
| Reykholt | 44 | $5,203 | $319.56 | 56% |
| Ölfus | 17 | $4,936 | $257.63 | 60% |
| Grímsnes- og Grafningshreppur | 32 | $4,858 | $365.05 | 54% |
| Grímsnes | 13 | $4,482 | $394.67 | 64% |
| Hella | 111 | $4,478 | $307.89 | 51% |
| Bláskógabyggð | 31 | $4,406 | $307.09 | 52% |
| Sandgerði | 14 | $4,214 | $219.76 | 63% |
| Hveragerðisbær | 40 | $4,178 | $316.41 | 47% |
| Selfoss | 214 | $4,156 | $307.38 | 53% |
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