Reykjavik Airbnb Market Analysis 2025: Short Term Rental Data & Vacation Rental Statistics in Capital Region, Iceland
Is Airbnb profitable in Reykjavik in 2025? Explore comprehensive Airbnb analytics for Reykjavik, Capital Region, Iceland to uncover income potential. This 2025 STR market report for Reykjavik, based on AirROI data from April 2024 to March 2025, reveals key trends in the bustling market of 1,983 active listings.
Whether you're considering an Airbnb investment in Reykjavik, optimizing your existing vacation rental, or exploring rental arbitrage opportunities, understanding the Reykjavik Airbnb data is crucial. Understanding the local regulations is key to maximizing your short term rental income potential. Let's dive into the specifics.
Key Reykjavik Airbnb Performance Metrics Overview
Monthly Airbnb Revenue Variations & Income Potential in Reykjavik (2025)
Understanding the monthly revenue variations for Airbnb listings in Reykjavik is key to maximizing your short term rental income potential. Seasonality significantly impacts earnings. Our analysis, based on data from the past 12 months, shows that the peak revenue month for STRs in Reykjavik is typically July, while March often presents the lowest earnings, highlighting opportunities for strategic pricing adjustments during shoulder and low seasons. Explore the typical Airbnb income in Reykjavik across different performance tiers:
- Best-in-class properties (Top 10%) achieve $8,469+ monthly, often utilizing dynamic pricing and superior guest experiences.
- Strong performing properties (Top 25%) earn $5,506 or more, indicating effective management and desirable locations/amenities.
- Typical properties (Median) generate around $3,368 per month, representing the average market performance.
- Entry-level properties (Bottom 25%) see earnings around $1,751, often with potential for optimization.
Average Monthly Airbnb Earnings Trend in Reykjavik
Reykjavik Airbnb Occupancy Rate Trends (2025)
Maximize your bookings by understanding the Reykjavik STR occupancy trends. Seasonal demand shifts significantly influence how often properties are booked. Typically, Julysees the highest demand (peak season occupancy), while January experiences the lowest (low season). Effective strategies, like adjusting minimum stays or offering promotions, can boost occupancy during slower periods. Here's how different property tiers perform in Reykjavik:
- Best-in-class properties (Top 10%) achieve 89%+ occupancy, indicating high desirability and potentially optimized availability.
- Strong performing properties (Top 25%) maintain 76% or higher occupancy, suggesting good market fit and guest satisfaction.
- Typical properties (Median) have an occupancy rate around 51%.
- Entry-level properties (Bottom 25%) average 24% occupancy, potentially facing higher vacancy.
Average Monthly Occupancy Rate Trend in Reykjavik
Average Daily Rate (ADR) Airbnb Trends in Reykjavik (2025)
Effective short term rental pricing strategy in Reykjavik involves understanding monthly ADR fluctuations. The Average Daily Rate (ADR) for Airbnb in Reykjavik typically peaks in December and dips lowest during April. Leveraging Airbnb dynamic pricing tools or strategies based on this seasonality can significantly boost revenue. Here's a look at the typical nightly rates achieved:
- Best-in-class properties (Top 10%) command rates of $414+ per night, often due to premium features or locations.
- Strong performing properties (Top 25%) achieve nightly rates of $282 or more.
- Typical properties (Median) charge around $197 per night.
- Entry-level properties (Bottom 25%) earn around $142 per night.
Average Daily Rate (ADR) Trend by Month in Reykjavik
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Airbnb Seasonality Analysis & Trends in Reykjavik (2025)
Peak Season (July, June, August)
- Revenue averages $5,239 per month
- Occupancy rates average 57.9%
- Daily rates average $235
Shoulder Season
- Revenue averages $4,139 per month
- Occupancy maintains around 49.2%
- Daily rates hold near $235
Low Season (January, February, March)
- Revenue drops to average $3,283 per month
- Occupancy decreases to average 45.3%
- Daily rates adjust to average $247
Seasonality Insights for Reykjavik
- The Airbnb seasonality in Reykjavik shows moderate seasonality with distinct peak and low periods. While the sections above show seasonal averages, it's also insightful to look at the extremes:
- During the high season, the absolute peak month showcases Reykjavik's highest earning potential, with monthly revenues capable of climbing to $5,290, occupancy reaching a high of 61.4%, and ADRs peaking at $259.
- Conversely, the slowest single month of the year, typically falling within the low season, marks the market's lowest point. In this month, revenue might dip to $3,174, occupancy could drop to 42.6%, and ADRs may adjust down to $222.
- Understanding both the seasonal averages and these monthly peaks and troughs in revenue, occupancy, and ADR is crucial for maximizing your Airbnb profit potential in Reykjavik.
Seasonal Strategies for Maximizing Profit
- Peak Season: Maximize revenue through premium pricing and potentially longer minimum stays. Ensure high availability.
- Low Season: Offer competitive pricing, special promotions (e.g., extended stay discounts), and flexible cancellation policies. Target off-season travelers like remote workers or budget-conscious guests.
- Shoulder Seasons: Implement dynamic pricing that balances peak and low rates. Target weekend travelers or specific events. Offer slightly more flexible terms than peak season.
- Regularly analyze your own performance against these Reykjavik seasonality benchmarks and adjust your pricing and availability strategy accordingly.
Best Areas for Airbnb Investment in Reykjavik (2025)
Exploring the top neighborhoods for short-term rentals in Reykjavik? This section highlights key areas, outlining why they are attractive for hosts and guests, along with notable local attractions. Consider these locations based on your target guest profile and investment strategy.
| Neighborhood / Area | Why Host Here? (Target Guests & Appeal) | Key Attractions & Landmarks |
|---|---|---|
| Downtown Reykjavik | The cultural and economic heart of Reykjavik, known for its vibrant nightlife, dining, and shopping scene. It attracts tourists looking for convenience and access to major attractions. | Hallgrímskirkja, Harpa Concert Hall, Laugavegur Shopping Street, Sun Voyager, Reykjavik Art Museum |
| Reykjavik Old Harbour | A picturesque area that offers stunning views of the waterfront, known for its restaurants and proximity to whale watching tours. Perfect for tourists seeking authentic experiences and local seafood. | Whale Watching Tours, Reykjavik Maritime Museum, Austurvöllur Park, Old Harbour restaurants, Museum of Photography |
| Laugardalur | A family-friendly area with parks and thermal pools. It's great for those who enjoy outdoor activities and local culture away from the city center bustle. | Laugardalslaug Swimming Pool, Reykjavik Zoo and Family Park, Laugardalur Park, Botanical Garden, Kringlan Shopping Center |
| Icelandic Highlands | A unique area for nature lovers. Close to stunning landscapes and hiking trails, ideal for adventure tourists looking to explore Iceland's natural beauty. | Þingvellir National Park, Gullfoss Waterfall, Geysir Geothermal Area, Skaftafell National Park, Landmannalaugar |
| Vesturbær | A charming neighborhood close to the sea, known for its local feel and great cafés. It offers a more residential vibe perfect for those seeking a longer stay. | Søndurgata Street, Austurstræti Beach, Icelandic National Museum, Reykjavik's old harbor, Local cafés |
| Hljomskalagardur | A lovely area known for its parks and open spaces, ideal for families and those looking for relaxation while still being close to downtown Reykjavik. | Tjörnin Pond, Reykjavik City Hall, Culture House, Children's Museum, Art Museum |
| Grandi | A rapidly gentrifying area filled with new restaurants, boutiques, and art galleries. An attractive option for younger travelers seeking a trendy atmosphere. | Grandi Harbour, Kopavogur Town Center, Reykjavik Flea Market, Cafés and Restaurants, Art Studios |
| Seltjarnarnes | A suburban area surrounded by nature and beaches, offering a quiet escape while still being close to downtown Reykjavik. Great for families and those seeking tranquility. | Seltjarnarnes Beach, Grotta Lighthouse, Seltjarnarnes Nature Reserve, Walking Trails, Bird Watching |
Understanding Airbnb License Requirements & STR Laws in Reykjavik (2025)
With 17% of listings showing registration in 2025, understanding potential Airbnb license requirements is crucial in Reykjavik. Always verify the latest short term rental regulations and Airbnb license requirements directly with local government authorities for Reykjavik to ensure full compliance before hosting.
(Source: AirROI data, 2025, based on 17% licensed listings)
Top Performing Airbnb Properties in Reykjavik (2025)
Benchmark your potential! Explore examples of top-performing Airbnb properties in Reykjavikbased on Trailing Twelve Month (TTM) revenue. Analyze their characteristics, revenue, occupancy rate, and ADR to understand what drives success in this market.
*B14 - Luxury Penthouse Downtown*
Entire Place • 5 bedrooms
Luxurious Villa in Downtown Reykjavik
Entire Place • 6 bedrooms
B14 - Unique apartment down town for 18Persons
Entire Place • 5 bedrooms
Six bedroom Luxury Apartments in the same house.
Entire Place • 6 bedrooms
Historic Villa in Downtown Reykjavik.
Entire Place • 5 bedrooms
Harbour Lux 3BR/2BA with Free Parking City Center
Entire Place • 3 bedrooms
Note: Performance varies based on location, size, amenities, seasonality, and management quality. Data reflects the past 12 months.
Top Performing Airbnb Hosts in Reykjavik (2025)
Learn from the best! This table showcases top-performing Airbnb hosts in Reykjavik based on the number of properties managed and estimated total revenue over the past year. Analyze their scale and performance metrics.
| Host Name | Properties | Grossing Revenue | Stay Reviews | Avg Rating |
|---|---|---|---|---|
| GreenKey | 102 | $5,946,406 | 5298 | 4.47/5.0 |
| Phil | 17 | $1,859,583 | 1010 | 4.24/5.0 |
| Heimaleiga | 38 | $1,687,442 | 4150 | 4.70/5.0 |
| Arni | 12 | $959,791 | 5770 | 4.95/5.0 |
| Bjarni | 10 | $919,758 | 426 | 4.80/5.0 |
| Kristján And Steinunn | 6 | $774,912 | 333 | 4.88/5.0 |
| B14 | 11 | $772,363 | 407 | 4.52/5.0 |
| Kristján | 16 | $752,058 | 276 | 2.73/5.0 |
| Gudni | 20 | $733,757 | 667 | 3.85/5.0 |
| Thora | 4 | $724,585 | 455 | 4.94/5.0 |
Analyzing the strategies of top hosts, such as their property selection, pricing, and guest communication, can offer valuable lessons for optimizing your own Airbnb operations in Reykjavik.
Dive Deeper: Advanced Reykjavik STR Market Data (2025)
Ready to unlock more insights? AirROI provides access to advanced metrics and comprehensive Airbnb data for Reykjavik. Explore detailed analytics beyond this report to refine your investment strategy, optimize pricing, and maximize your vacation rental profits.
Explore Advanced MetricsReykjavik Short-Term Rental Market Composition (2025): Property & Room Types
Room Type Distribution
Property Type Distribution
Market Composition Insights for Reykjavik
- The Reykjavik Airbnb market composition is heavily skewed towards Entire Home/Apt listings, which make up 84.5% of the 1,983 active rentals. This indicates strong guest preference for privacy and space.
- Looking at the property type distribution in Reykjavik, Apartment/Condo properties are the most common (77.9%), reflecting the local real estate landscape.
- The presence of 6.8% Hotel/Boutique listings indicates integration with traditional hospitality.
- Smaller segments like outdoor/unique, others, unique stays (combined 2.3%) offer potential for unique stay experiences.
Reykjavik Airbnb Room Capacity Analysis (2025): Bedroom Distribution
Distribution of Listings by Number of Bedrooms
Room Capacity Insights for Reykjavik
- The dominant room capacity in Reykjavik is 1 bedroom listings, making up 44.4% of the market. This suggests a strong demand for properties suitable for couples or solo travelers.
- Together, 1 bedroom and 2 bedrooms properties represent 70.1% of the active Airbnb listings in Reykjavik, indicating a high concentration in these sizes.
Reykjavik Vacation Rental Guest Capacity Trends (2025)
Distribution of Listings by Guest Capacity
Guest Capacity Insights for Reykjavik
- The most common guest capacity trend in Reykjavik vacation rentals is listings accommodating 2 guests (28.8%). This suggests the primary traveler segment is likely couples or solo travelers.
- Properties designed for 2 guests and 4 guests dominate the Reykjavik STR market, accounting for 55.1% of listings.
- 19.8% of properties accommodate 6+ guests, serving the market segment for larger families or group travel in Reykjavik.
- On average, properties in Reykjavik are equipped to host 3.6 guests.
Reykjavik Airbnb Booking Patterns (2025): Available vs. Booked Days
Available Days Distribution
Booked Days Distribution
Booking Pattern Insights for Reykjavik
- The most common availability pattern in Reykjavik falls within the 271-366 days range, representing 38% of listings. This suggests many properties have significant open periods on their calendars.
- Approximately 69.1% of listings show high availability (181+ days open annually), indicating potential for increased bookings or specific owner usage patterns.
- For booked days, the 91-180 days range is most frequent in Reykjavik (31.1%), reflecting common guest stay durations or potential owner blocking patterns.
- A notable 32.1% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.
Reykjavik Airbnb Minimum Stay Requirements Analysis
Distribution of Listings by Minimum Night Requirement
1 Night
409 listings
22.6% of total
2 Nights
391 listings
21.6% of total
3 Nights
377 listings
20.9% of total
4-6 Nights
247 listings
13.7% of total
7-29 Nights
49 listings
2.7% of total
30+ Nights
335 listings
18.5% of total
Key Insights
- The most prevalent minimum stay requirement in Reykjavik is 1 Night, adopted by 22.6% of listings. This highlights the market's preference for shorter, flexible bookings.
- A significant segment (18.5%) caters to monthly stays (30+ nights) in Reykjavik, pointing to opportunities in the extended-stay market.
Recommendations
- Align with the market by considering a 1 Night minimum stay, as 22.6% of Reykjavik hosts use this setting.
- If feasible, allowing 1-night stays, especially midweek or during low season, could capture last-minute bookings, as only 22.6% currently do.
- Explore offering discounts for stays of 30+ nights to attract the 18.5% of the market seeking extended stays.
- Adjust minimum nights based on seasonality – potentially shorter during low season and longer during peak demand periods in Reykjavik.
Reykjavik Airbnb Cancellation Policy Trends Analysis (2025)
Super Strict 30 Days
10 listings
0.6% of total
Super Strict 60 Days
4 listings
0.2% of total
Flexible
415 listings
25% of total
Moderate
626 listings
37.7% of total
Firm
325 listings
19.6% of total
Strict
280 listings
16.9% of total
Cancellation Policy Insights for Reykjavik
- The prevailing Airbnb cancellation policy trend in Reykjavik is Moderate, used by 37.7% of listings.
- There's a relatively balanced mix between guest-friendly (62.7%) and stricter (36.5%) policies, offering choices for different guest needs.
Recommendations for Hosts
- Consider adopting a Moderate policy to align with the 37.7% market standard in Reykjavik.
- Regularly review your cancellation policy against competitors and market demand shifts in Reykjavik.
Reykjavik STR Booking Lead Time Analysis (2025)
Average Booking Lead Time by Month
Booking Lead Time Insights for Reykjavik
- The overall average booking lead time for vacation rentals in Reykjavik is 61 days.
- Guests book furthest in advance for stays during June (average 94 days), likely coinciding with peak travel demand or local events.
- The shortest booking windows occur for stays in February (average 53 days), indicating more last-minute travel plans during this time.
- Seasonally, Summer (83 days avg.) sees the longest lead times, while Winter (60 days avg.) has the shortest, reflecting typical travel planning cycles.
Recommendations for Hosts
- Use the overall average lead time (61 days) as a baseline for your pricing and availability strategy in Reykjavik.
- For June stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 94 days out to capitalize on advance planning.
- Target marketing efforts for the Summer season well in advance (at least 83 days) to capture early planners.
- Monitor your own booking lead times against these Reykjavik averages to identify opportunities for dynamic pricing adjustments.
Popular & Essential Airbnb Amenities in Reykjavik (2025)
Amenity Prevalence
Amenity Insights for Reykjavik
- Essential amenities in Reykjavik that guests expect include: Wifi, Smoke alarm, Heating. Lacking these (any) could significantly impact bookings.
- Popular amenities like Kitchen, Hot water, Essentials are common but not universal. Offering these can provide a competitive edge.
Recommendations for Hosts
- Ensure your listing includes all essential amenities for Reykjavik: Wifi, Smoke alarm, Heating.
- Prioritize adding missing essentials: Wifi, Smoke alarm, Heating.
- Consider adding popular differentiators like Kitchen or Hot water to increase appeal.
- Highlight unique or less common amenities you offer (e.g., hot tub, dedicated workspace, EV charger) in your listing description and photos.
- Regularly check competitor amenities in Reykjavik to stay competitive.
Reykjavik Airbnb Guest Demographics & Profile Analysis (2025)
Guest Profile Summary for Reykjavik
- The typical guest profile for Airbnb in Reykjavik consists of predominantly international visitors (99%), with top international origins including United Kingdom, typically belonging to the Post-2000s (Gen Z/Alpha) group (50%), primarily speaking English or Spanish.
- Domestic travelers account for 0.8% of guests.
- Key international markets include United States (52.2%) and United Kingdom (9%).
- Top languages spoken are English (54.3%) followed by Spanish (9.1%).
- A significant demographic segment is the Post-2000s (Gen Z/Alpha) group, representing 50% of guests.
Recommendations for Hosts
- Focus marketing internationally, particularly towards travelers from United Kingdom.
- Tailor amenities and listing descriptions to appeal to the dominant Post-2000s (Gen Z/Alpha) demographic (e.g., highlight fast WiFi, smart home features, local guides).
- Highlight unique local experiences or amenities relevant to the primary guest profile.
- Consider seasonal promotions aligned with peak travel times for key origin markets.
Nearby Short-Term Rental Market Comparison
How does the Reykjavik Airbnb market stack up against its neighbors? Compare key performance metrics like average monthly revenue, ADR, and occupancy rates in surrounding areas to understand the broader regional STR landscape.
| Market | Active Properties | Monthly Revenue | Daily Rate | Avg. Occupancy |
|---|---|---|---|---|
| Reykholt | 48 | $4,939 | $315.50 | 54% |
| Ölfus | 16 | $4,866 | $244.08 | 64% |
| Grímsnes | 10 | $4,851 | $339.12 | 72% |
| Grímsnes- og Grafningshreppur | 34 | $4,664 | $356.92 | 52% |
| Hella | 109 | $4,235 | $300.98 | 50% |
| Sandgerði | 15 | $4,041 | $217.72 | 60% |
| Hveragerðisbær | 45 | $4,002 | $305.46 | 47% |
| Akranes | 24 | $3,966 | $253.44 | 56% |
| Bláskógabyggð | 33 | $3,919 | $296.24 | 53% |
| Kjósarhreppur | 18 | $8,807 | $548.84 | 63% |