Castro Marim Airbnb Market Analysis 2025: Short Term Rental Data & Vacation Rental Statistics in Faro, Portugal

Source: AirROI
Last updated: 2025-03-31

Is Airbnb profitable in Castro Marim in 2025? Explore comprehensive Airbnb analytics for Castro Marim, Faro, Portugal to uncover income potential. This 2025 STR market report for Castro Marim, based on AirROI data from April 2024 to March 2025, reveals key trends in the niche market of 184 active listings.

Whether you're considering an Airbnb investment in Castro Marim, optimizing your existing vacation rental, or exploring rental arbitrage opportunities, understanding the Castro Marim Airbnb data is crucial. Navigating the high regulation landscape is key to maximizing your short term rental income potential. Let's dive into the specifics.

Key Castro Marim Airbnb Performance Metrics Overview

Avg. Daily Rate (ADR)(?)
$172
The average rental revenue earned for an occupied room per day in Castro Marim.
Occupancy Rate(?)
40.1%
Moderate demand with booking opportunities.
Median Annual Revenue(?)
$17,311
Typical annual income for an Airbnb listing in Castro Marim. Factors like property type, size, and location influence actual earnings.
Revenue Growth YoY(?)
0.9%
Positive growth (0.9%) vs. last year.
Peak Revenue Month(?)
August
The month with the highest average earnings, indicating peak season in Castro Marim.
Lowest Revenue Month(?)
February
The month with the lowest average earnings, indicating the low season in Castro Marim.
STR Regulation Level(?)
High
Strict regulations. Compliance is crucial (licensing, taxes, stay limits may apply).
Active Airbnb Listings(?)
184
Total number of active short-term rentals listed.

Monthly Airbnb Revenue Variations & Income Potential in Castro Marim (2025)

Understanding the monthly revenue variations for Airbnb listings in Castro Marim 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 Castro Marim is typically August, while February often presents the lowest earnings, highlighting opportunities for strategic pricing adjustments during shoulder and low seasons. Explore the typical Airbnb income in Castro Marim across different performance tiers:

  • Best-in-class properties (Top 10%) achieve $4,407+ monthly, often utilizing dynamic pricing and superior guest experiences.
  • Strong performing properties (Top 25%) earn $2,739 or more, indicating effective management and desirable locations/amenities.
  • Typical properties (Median) generate around $1,480 per month, representing the average market performance.
  • Entry-level properties (Bottom 25%) see earnings around $729, often with potential for optimization.

Average Monthly Airbnb Earnings Trend in Castro Marim

Castro Marim Airbnb Occupancy Rate Trends (2025)

Maximize your bookings by understanding the Castro Marim STR occupancy trends. Seasonal demand shifts significantly influence how often properties are booked. Typically, Augustsees 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 Castro Marim:

  • Best-in-class properties (Top 10%) achieve 72%+ occupancy, indicating high desirability and potentially optimized availability.
  • Strong performing properties (Top 25%) maintain 53% or higher occupancy, suggesting good market fit and guest satisfaction.
  • Typical properties (Median) have an occupancy rate around 34%.
  • Entry-level properties (Bottom 25%) average 18% occupancy, potentially facing higher vacancy.

Average Monthly Occupancy Rate Trend in Castro Marim

Average Daily Rate (ADR) Airbnb Trends in Castro Marim (2025)

Effective short term rental pricing strategy in Castro Marim involves understanding monthly ADR fluctuations. The Average Daily Rate (ADR) for Airbnb in Castro Marim typically peaks in August and dips lowest during February. 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 $340+ per night, often due to premium features or locations.
  • Strong performing properties (Top 25%) achieve nightly rates of $212 or more.
  • Typical properties (Median) charge around $135 per night.
  • Entry-level properties (Bottom 25%) earn around $92 per night.

Average Daily Rate (ADR) Trend by Month in Castro Marim

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Airbnb Seasonality Analysis & Trends in Castro Marim (2025)

Peak Season (August, July, September)
  • Revenue averages $4,038 per month
  • Occupancy rates average 58.5%
  • Daily rates average $211
Shoulder Season
  • Revenue averages $1,870 per month
  • Occupancy maintains around 33.0%
  • Daily rates hold near $178
Low Season (January, February, December)
  • Revenue drops to average $963 per month
  • Occupancy decreases to average 23.6%
  • Daily rates adjust to average $158

Seasonality Insights for Castro Marim

  • The Airbnb seasonality in Castro Marim shows highly seasonal trends requiring careful strategy. 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 Castro Marim's highest earning potential, with monthly revenues capable of climbing to $5,312, occupancy reaching a high of 74.4%, and ADRs peaking at $217.
  • 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 $814, occupancy could drop to 22.5%, and ADRs may adjust down to $155.
  • 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 Castro Marim.

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 Castro Marim seasonality benchmarks and adjust your pricing and availability strategy accordingly.

Best Areas for Airbnb Investment in Castro Marim (2025)

Exploring the top neighborhoods for short-term rentals in Castro Marim? 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 / AreaWhy Host Here? (Target Guests & Appeal)Key Attractions & Landmarks
Altura Beach
Beautiful sandy beach known for its calm waters, ideal for families and those seeking relaxation. Endowed with natural beauty and proximity to local restaurants.
Altura Beach, Praia da Alagoa, Local seafood restaurants, Nature reserves, Walking trails
Castro Marim Village
Charming historic town with rich traditions and cultural heritage. Great for tourists interested in history and architecture.
Castle of Castro Marim, Igreja Matriz, Cultural festivals, Local artisanal markets
Praia Verde
Secluded beach popular among tourists looking for a quieter getaway. Surrounded by lush pine forests, perfect for nature lovers.
Praia Verde Beach, Nearby golf courses, Pine forests for hiking, Local cafes
Monte Gordo
Lively town known for its long beach and vibrant nightlife. Attracts visitors looking for both relaxation and entertainment.
Monte Gordo Beach, Casino, Bars and restaurants, Promenade
Rio Guadiana
Scenic river area ideal for outdoor activities and nature trips. Attracts those interested in ecotourism and scenic views.
Rio Guadiana boat tours, Bird watching, Nature parks nearby, Cycling paths
Vila Real de Santo António
A nearby town with beautiful architecture and cultural sites. It’s great for visitors wanting to explore the region’s heritage.
Historical Town Center, Marina, Market Square, Art galleries
Cacela Velha
Picturesque village renowned for its stunning cliffside views and beautiful beach. Perfect for tourists wanting a serene atmosphere and local culture.
Cacela Velha Beach, Cacela Velha Castle, Local artisan shops, Stunning viewpoints
Fuseta Beach
A hidden gem known for its tranquil waters and family-friendly environment. Great for attracting families and beach lovers.
Fuseta Beach, Natural pools, Coastal walks, Local seafood dining

Understanding Airbnb License Requirements & STR Laws in Castro Marim (2025)

Yes, Castro Marim, Faro, Portugal enforces high STR regulations. Obtaining a license and ensuring compliance is almost certainly required according to current 2025 STR laws. Always verify the latest short term rental regulations and Airbnb license requirements directly with local government authorities for Castro Marim to ensure full compliance before hosting.

(Source: AirROI data, 2025, based on 68% licensed listings)

Top Performing Airbnb Properties in Castro Marim (2025)

Benchmark your potential! Explore examples of top-performing Airbnb properties in Castro Marimbased on Trailing Twelve Month (TTM) revenue. Analyze their characteristics, revenue, occupancy rate, and ADR to understand what drives success in this market.

Entire Place • 8 bedrooms

$255,516
Revenue
55.5%
Occupancy
$1059.14
Daily Rate
Villa Golden Jubilee

Villa Golden Jubilee

Entire Place • 4 bedrooms

$126,825
Revenue
31.2%
Occupancy
$927.76
Daily Rate
Apartamento Salty Tides

Apartamento Salty Tides

Entire Place • 3 bedrooms

$65,347
Revenue
36.7%
Occupancy
$763.32
Daily Rate
Altura Prime-4 Suites, Private Pool, Walk to Beach

Altura Prime-4 Suites, Private Pool, Walk to Beach

Entire Place • 4 bedrooms

$57,500
Revenue
51.0%
Occupancy
$491.23
Daily Rate
Vitamin Sea - Modern Family Villa with Heated Pool

Vitamin Sea - Modern Family Villa with Heated Pool

Entire Place • 4 bedrooms

$55,549
Revenue
63.1%
Occupancy
$307.53
Daily Rate
Beach House at Bela Praia Village

Beach House at Bela Praia Village

Entire Place • 3 bedrooms

$54,494
Revenue
83.8%
Occupancy
$241.44
Daily Rate

Note: Performance varies based on location, size, amenities, seasonality, and management quality. Data reflects the past 12 months.

Top Performing Airbnb Hosts in Castro Marim (2025)

Learn from the best! This table showcases top-performing Airbnb hosts in Castro Marim based on the number of properties managed and estimated total revenue over the past year. Analyze their scale and performance metrics.

Host NamePropertiesGrossing RevenueStay ReviewsAvg Rating
Espargosa1$255,516434.86/5.0
Sandra1$126,825224.95/5.0
Pilar4$98,5371544.62/5.0
Mateus3$90,8974034.89/5.0
Rentals By Smartavillas3$72,620354.72/5.0
Quinta Da Fornalha8$72,568433.60/5.0
Susana3$68,344143.06/5.0
Host #4329963581$65,34710.00/5.0
Wilson3$62,661213.33/5.0
Gracinda2$62,318294.76/5.0

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 Castro Marim.

Dive Deeper: Advanced Castro Marim STR Market Data (2025)

Ready to unlock more insights? AirROI provides access to advanced metrics and comprehensive Airbnb data for Castro Marim. Explore detailed analytics beyond this report to refine your investment strategy, optimize pricing, and maximize your vacation rental profits.

Explore Advanced Metrics

Castro Marim Short-Term Rental Market Composition (2025): Property & Room Types

Room Type Distribution

Property Type Distribution

Market Composition Insights for Castro Marim

  • The Castro Marim Airbnb market composition is heavily skewed towards Entire Home/Apt listings, which make up 94% of the 184 active rentals. This indicates strong guest preference for privacy and space.
  • Looking at the property type distribution in Castro Marim, House properties are the most common (63%), reflecting the local real estate landscape.
  • Houses represent a significant 63% portion, catering likely to families or larger groups.
  • The presence of 5.4% Hotel/Boutique listings indicates integration with traditional hospitality.
  • Smaller segments like outdoor/unique (combined 2.2%) offer potential for unique stay experiences.

Castro Marim Airbnb Room Capacity Analysis (2025): Bedroom Distribution

Distribution of Listings by Number of Bedrooms

Room Capacity Insights for Castro Marim

  • The dominant room capacity in Castro Marim is 1 bedroom listings, making up 29.9% of the market. This suggests a strong demand for properties suitable for couples or solo travelers.
  • Together, 1 bedroom and 2 bedrooms properties represent 57.1% of the active Airbnb listings in Castro Marim, indicating a high concentration in these sizes.
  • A significant 40.1% of listings offer 3+ bedrooms, catering to larger groups and families seeking more space in Castro Marim.

Castro Marim Vacation Rental Guest Capacity Trends (2025)

Distribution of Listings by Guest Capacity

Guest Capacity Insights for Castro Marim

  • The most common guest capacity trend in Castro Marim vacation rentals is listings accommodating 6 guests (27.7%). This suggests the primary traveler segment is likely larger groups.
  • Properties designed for 6 guests and 4 guests dominate the Castro Marim STR market, accounting for 53.2% of listings.
  • 52.7% of properties accommodate 6+ guests, serving the market segment for larger families or group travel in Castro Marim.
  • On average, properties in Castro Marim are equipped to host 5.3 guests.

Castro Marim Airbnb Booking Patterns (2025): Available vs. Booked Days

Available Days Distribution

Booked Days Distribution

Booking Pattern Insights for Castro Marim

  • The most common availability pattern in Castro Marim falls within the 271-366 days range, representing 57.6% of listings. This suggests many properties have significant open periods on their calendars.
  • Approximately 91.3% of listings show high availability (181+ days open annually), indicating potential for increased bookings or specific owner usage patterns.
  • For booked days, the 31-90 days range is most frequent in Castro Marim (38.6%), reflecting common guest stay durations or potential owner blocking patterns.
  • A notable 10.3% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.

Castro Marim Airbnb Minimum Stay Requirements Analysis

Distribution of Listings by Minimum Night Requirement

1 Night (10.7%)

1 Night

19 listings

10.7% of total

2 Nights (23.6%)

2 Nights

42 listings

23.6% of total

3 Nights (12.9%)

3 Nights

23 listings

12.9% of total

4-6 Nights (23.6%)

4-6 Nights

42 listings

23.6% of total

7-29 Nights (20.8%)

7-29 Nights

37 listings

20.8% of total

30+ Nights (8.4%)

30+ Nights

15 listings

8.4% of total

Key Insights

  • The most prevalent minimum stay requirement in Castro Marim is 2 Nights, adopted by 23.6% of listings. This highlights the market's preference for shorter, flexible bookings.

Recommendations

  • Align with the market by considering a 2 Nights minimum stay, as 23.6% of Castro Marim hosts use this setting.
  • If feasible, allowing 1-night stays, especially midweek or during low season, could capture last-minute bookings, as only 10.7% currently do.
  • Explore offering discounts for stays of 30+ nights to attract the 8.4% of the market seeking extended stays.
  • Adjust minimum nights based on seasonality – potentially shorter during low season and longer during peak demand periods in Castro Marim.

Castro Marim Airbnb Cancellation Policy Trends Analysis (2025)

Super Strict 30 Days

6 listings

3.8% of total

Flexible (15.4%)

Flexible

24 listings

15.4% of total

Moderate (17.9%)

Moderate

28 listings

17.9% of total

Firm (28.2%)

Firm

44 listings

28.2% of total

Strict (34.6%)

Strict

54 listings

34.6% of total

Cancellation Policy Insights for Castro Marim

  • The prevailing Airbnb cancellation policy trend in Castro Marim is Strict, used by 34.6% of listings.
  • A majority (62.8%) of hosts in Castro Marim utilize Firm or Strict policies, indicating a market where hosts prioritize booking security.

Recommendations for Hosts

  • Consider adopting a Strict policy to align with the 34.6% market standard in Castro Marim.
  • With 34.6% using Strict terms, this is a viable option in Castro Marim, particularly for high-value properties or during peak demand periods.
  • Regularly review your cancellation policy against competitors and market demand shifts in Castro Marim.

Castro Marim STR Booking Lead Time Analysis (2025)

Average Booking Lead Time by Month

Booking Lead Time Insights for Castro Marim

  • The overall average booking lead time for vacation rentals in Castro Marim is 80 days.
  • Guests book furthest in advance for stays during August (average 134 days), likely coinciding with peak travel demand or local events.
  • The shortest booking windows occur for stays in December (average 51 days), indicating more last-minute travel plans during this time.
  • Seasonally, Summer (112 days avg.) sees the longest lead times, while Winter (59 days avg.) has the shortest, reflecting typical travel planning cycles.

Recommendations for Hosts

  • Use the overall average lead time (80 days) as a baseline for your pricing and availability strategy in Castro Marim.
  • For August stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 134 days out to capitalize on advance planning.
  • Target marketing efforts for the Summer season well in advance (at least 112 days) to capture early planners.
  • Monitor your own booking lead times against these Castro Marim averages to identify opportunities for dynamic pricing adjustments.

Popular & Essential Airbnb Amenities in Castro Marim (2025)

Amenity Prevalence

Amenity Insights for Castro Marim

  • Essential amenities in Castro Marim that guests expect include: Kitchen. Lacking these (this) could significantly impact bookings.
  • Popular amenities like TV, Wifi, Hot water are common but not universal. Offering these can provide a competitive edge.
  • Warning: Wifi is not universally provided but is considered essential globally. Ensure reliable Wifi is offered.

Recommendations for Hosts

  • Ensure your listing includes all essential amenities for Castro Marim: Kitchen.
  • Prioritize adding missing essentials: Kitchen.
  • Consider adding popular differentiators like TV or Wifi 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 Castro Marim to stay competitive.

Castro Marim Airbnb Guest Demographics & Profile Analysis (2025)

Guest Origin: Domestic vs. International
Top 5 Cities of Origin
Top 5 Countries of Origin
Top 5 Languages Spoken
Guest Age Distribution (Birth Decade)

Guest Profile Summary for Castro Marim

  • The typical guest profile for Airbnb in Castro Marim consists of a mix of domestic (37%) and international guests, with top international origins including United Kingdom, typically belonging to the Post-2000s (Gen Z/Alpha) group (50%), primarily speaking English or Portuguese.
  • Domestic travelers account for 37.1% of guests.
  • Key international markets include Portugal (37.1%) and United Kingdom (12.5%).
  • Top languages spoken are English (37.1%) followed by Portuguese (18%).
  • 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 Castro Marim 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.

MarketActive PropertiesMonthly RevenueDaily RateAvg. Occupancy
Comporta120$3,474$451.7941%
Gelves22$3,120$185.8453%
Monesterio18$2,729$248.3835%
Albufeira4,918$2,667$276.1247%
Grândola337$2,504$358.7636%
El Castillo de las Guardas13$2,500$247.2038%
Lagoa e Carvoeiro1,067$2,424$242.8350%
Guillena34$2,397$273.5536%
Ferragudo200$2,379$256.3348%
Loulé2,688$2,318$261.2444%

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