Ponta do Sol Airbnb Market Analysis 2025: Short Term Rental Data & Vacation Rental Statistics in Madeira, Portugal

Source: AirROI
Last updated: 2025-03-31

Is Airbnb profitable in Ponta do Sol in 2025? Explore comprehensive Airbnb analytics for Ponta do Sol, Madeira, Portugal to uncover income potential. This 2025 STR market report for Ponta do Sol, based on AirROI data from April 2024 to March 2025, reveals key trends in the market of 287 active listings.

Whether you're considering an Airbnb investment in Ponta do Sol, optimizing your existing vacation rental, or exploring rental arbitrage opportunities, understanding the Ponta do Sol 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 Ponta do Sol Airbnb Performance Metrics Overview

Avg. Daily Rate (ADR)(?)
$171
The average rental revenue earned for an occupied room per day in Ponta do Sol.
Occupancy Rate(?)
64.7%
High demand. Good booking frequency.
Median Annual Revenue(?)
$38,057
Typical annual income for an Airbnb listing in Ponta do Sol. Factors like property type, size, and location influence actual earnings.
Revenue Growth YoY(?)
36.2%
Strong growth (36.2%) vs. last year.
Peak Revenue Month(?)
July
The month with the highest average earnings, indicating peak season in Ponta do Sol.
Lowest Revenue Month(?)
March
The month with the lowest average earnings, indicating the low season in Ponta do Sol.
STR Regulation Level(?)
High
Strict regulations. Compliance is crucial (licensing, taxes, stay limits may apply).
Active Airbnb Listings(?)
287
Total number of active short-term rentals listed.

Monthly Airbnb Revenue Variations & Income Potential in Ponta do Sol (2025)

Understanding the monthly revenue variations for Airbnb listings in Ponta do Sol 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 Ponta do Sol 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 Ponta do Sol across different performance tiers:

  • Best-in-class properties (Top 10%) achieve $6,375+ monthly, often utilizing dynamic pricing and superior guest experiences.
  • Strong performing properties (Top 25%) earn $3,923 or more, indicating effective management and desirable locations/amenities.
  • Typical properties (Median) generate around $2,611 per month, representing the average market performance.
  • Entry-level properties (Bottom 25%) see earnings around $1,685, often with potential for optimization.

Average Monthly Airbnb Earnings Trend in Ponta do Sol

Ponta do Sol Airbnb Occupancy Rate Trends (2025)

Maximize your bookings by understanding the Ponta do Sol 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 Ponta do Sol:

  • Best-in-class properties (Top 10%) achieve 93%+ occupancy, indicating high desirability and potentially optimized availability.
  • Strong performing properties (Top 25%) maintain 87% or higher occupancy, suggesting good market fit and guest satisfaction.
  • Typical properties (Median) have an occupancy rate around 74%.
  • Entry-level properties (Bottom 25%) average 52% occupancy, potentially facing higher vacancy.

Average Monthly Occupancy Rate Trend in Ponta do Sol

Average Daily Rate (ADR) Airbnb Trends in Ponta do Sol (2025)

Effective short term rental pricing strategy in Ponta do Sol involves understanding monthly ADR fluctuations. The Average Daily Rate (ADR) for Airbnb in Ponta do Sol typically peaks in July 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 $280+ per night, often due to premium features or locations.
  • Strong performing properties (Top 25%) achieve nightly rates of $174 or more.
  • Typical properties (Median) charge around $119 per night.
  • Entry-level properties (Bottom 25%) earn around $89 per night.

Average Daily Rate (ADR) Trend by Month in Ponta do Sol

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Airbnb Seasonality Analysis & Trends in Ponta do Sol (2025)

Peak Season (July, August, May)
  • Revenue averages $4,742 per month
  • Occupancy rates average 79.3%
  • Daily rates average $181
Shoulder Season
  • Revenue averages $3,716 per month
  • Occupancy maintains around 68.1%
  • Daily rates hold near $168
Low Season (January, February, March)
  • Revenue drops to average $2,570 per month
  • Occupancy decreases to average 53.5%
  • Daily rates adjust to average $154

Seasonality Insights for Ponta do Sol

  • The Airbnb seasonality in Ponta do Sol 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 Ponta do Sol's highest earning potential, with monthly revenues capable of climbing to $4,844, occupancy reaching a high of 82.0%, and ADRs peaking at $186.
  • 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 $2,471, occupancy could drop to 50.7%, and ADRs may adjust down to $151.
  • 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 Ponta do Sol.

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 Ponta do Sol seasonality benchmarks and adjust your pricing and availability strategy accordingly.

Best Areas for Airbnb Investment in Ponta do Sol (2025)

Exploring the top neighborhoods for short-term rentals in Ponta do Sol? 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
Ponta do Sol Town Center
The vibrant heart of Ponta do Sol, featuring charming streets, local shops, and cafes. It's ideal for tourists interested in culture and local life, along with proximity to the beach.
Ponta do Sol Beach, Church of Our Lady of the Light, Ponta do Sol Promenade, local markets, sideline cafes
Praia da Ponta do Sol
This is one of the main beaches in Ponta do Sol, popular for sunbathing and water sports. It attracts visitors looking for seaside relaxation and activities.
Beach activities, water sports, beachside bars, scenic viewpoints
Caminho dos Pretos
A picturesque walking trail offering stunning views of the cliffs and the ocean, attracting nature lovers and hikers who want to explore the scenic beauty of Madeira.
Hiking trails, breathtaking vistas, local flora and fauna
Levada Nova
This area is famous for its irrigation canals known as levadas, which offer breathtaking scenic hikes through the lush countryside, appealing to outdoor enthusiasts.
Levada walks, nature photography, botanical diversity
Sao Vicente Valley
Located nearby, this valley is known for its natural beauty, offering opportunities for hiking and exploring Madeira's rich biodiversity.
São Vicente Caves, beautiful valleys, volcanic landscapes
Cabo Girao
An iconic viewpoint nearby with one of the highest sea cliffs in Europe. This attracts tourists for panoramic views and sunset photography.
Skywalk glass platform, breathtaking ocean views, sunset watching, paragliding
Ribeira Brava
A nearby village with beautiful coastlines and local culture, it provides a quieter choice for tourists looking for authenticity away from the hustle and bustle.
Ribeira Brava beach, local food markets, cultural events
Encumeada
A mountain viewpoint offering hiking paths and stunning vistas of the island, appealing to travelers looking for adventure and natural beauty.
Mountain trails, breathtaking panoramic views, nature exploration

Understanding Airbnb License Requirements & STR Laws in Ponta do Sol (2025)

Yes, Ponta do Sol, Madeira, 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 Ponta do Sol to ensure full compliance before hosting.

(Source: AirROI data, 2025, based on 92% licensed listings)

Top Performing Airbnb Properties in Ponta do Sol (2025)

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

Casa da Vargem I by An Island Apart

Casa da Vargem I by An Island Apart

Entire Place • 2 bedrooms

$539,024
Revenue
62.8%
Occupancy
$2186.11
Daily Rate
Casa da Vargem II by An Island Apart

Casa da Vargem II by An Island Apart

Entire Place • 1 bedroom

$387,744
Revenue
71.7%
Occupancy
$1341.53
Daily Rate
The White House by An Island Apart

The White House by An Island Apart

Entire Place • 3 bedrooms

$383,955
Revenue
68.8%
Occupancy
$1608.44
Daily Rate
Oscar s House by An Island Apart

Oscar s House by An Island Apart

Entire Place • 1 bedroom

$278,838
Revenue
89.1%
Occupancy
$813.24
Daily Rate
Germana House by An Island Apart

Germana House by An Island Apart

Entire Place • 4 bedrooms

$251,795
Revenue
78.2%
Occupancy
$1149.50
Daily Rate
Blue House - By Wehost

Blue House - By Wehost

Entire Place • 1 bedroom

$140,199
Revenue
73.4%
Occupancy
$462.77
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 Ponta do Sol (2025)

Learn from the best! This table showcases top-performing Airbnb hosts in Ponta do Sol 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
An Island6$1,979,5382964.79/5.0
Madeira18$604,7082574.79/5.0
A Home In Madeira16$596,2613974.53/5.0
LovelyStay8$487,2881484.69/5.0
Susana @Stay Madeira Island10$329,7815084.91/5.0
OurMadeira4$246,082824.69/5.0
Carla3$220,594654.72/5.0
Roberto3$220,37314644.97/5.0
Johnny3$214,6423564.93/5.0
Rita5$201,2292034.93/5.0

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 Ponta do Sol.

Dive Deeper: Advanced Ponta do Sol STR Market Data (2025)

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

Explore Advanced Metrics

Ponta do Sol Short-Term Rental Market Composition (2025): Property & Room Types

Room Type Distribution

Property Type Distribution

Market Composition Insights for Ponta do Sol

  • The Ponta do Sol Airbnb market composition is heavily skewed towards Entire Home/Apt listings, which make up 95.1% of the 287 active rentals. This indicates strong guest preference for privacy and space.
  • Looking at the property type distribution in Ponta do Sol, House properties are the most common (57.8%), reflecting the local real estate landscape.
  • Houses represent a significant 57.8% portion, catering likely to families or larger groups.
  • Smaller segments like outdoor/unique, hotel/boutique, others (combined 5.9%) offer potential for unique stay experiences.

Ponta do Sol Airbnb Room Capacity Analysis (2025): Bedroom Distribution

Distribution of Listings by Number of Bedrooms

Room Capacity Insights for Ponta do Sol

  • The dominant room capacity in Ponta do Sol is 2 bedrooms listings, making up 35.2% of the market. This suggests a strong demand for properties suitable for couples or solo travelers.
  • Together, 2 bedrooms and 1 bedroom properties represent 67.3% of the active Airbnb listings in Ponta do Sol, indicating a high concentration in these sizes.
  • A significant 28.5% of listings offer 3+ bedrooms, catering to larger groups and families seeking more space in Ponta do Sol.

Ponta do Sol Vacation Rental Guest Capacity Trends (2025)

Distribution of Listings by Guest Capacity

Guest Capacity Insights for Ponta do Sol

  • The most common guest capacity trend in Ponta do Sol vacation rentals is listings accommodating 4 guests (31.7%). This suggests the primary traveler segment is likely small families or groups.
  • Properties designed for 4 guests and 2 guests dominate the Ponta do Sol STR market, accounting for 55.7% of listings.
  • 27.5% of properties accommodate 6+ guests, serving the market segment for larger families or group travel in Ponta do Sol.
  • On average, properties in Ponta do Sol are equipped to host 4.2 guests.

Ponta do Sol Airbnb Booking Patterns (2025): Available vs. Booked Days

Available Days Distribution

Booked Days Distribution

Booking Pattern Insights for Ponta do Sol

  • The most common availability pattern in Ponta do Sol falls within the 91-180 days range, representing 37.3% of listings. This suggests many properties have significant open periods on their calendars.
  • Approximately 29.6% of listings show high availability (181+ days open annually), indicating potential for increased bookings or specific owner usage patterns.
  • For booked days, the 271-366 days range is most frequent in Ponta do Sol (35.9%), reflecting common guest stay durations or potential owner blocking patterns.
  • A notable 71.4% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.

Ponta do Sol Airbnb Minimum Stay Requirements Analysis

Distribution of Listings by Minimum Night Requirement

1 Night (6.4%)

1 Night

18 listings

6.4% of total

2 Nights (7.1%)

2 Nights

20 listings

7.1% of total

3 Nights (16.1%)

3 Nights

45 listings

16.1% of total

4-6 Nights (54.6%)

4-6 Nights

153 listings

54.6% of total

7-29 Nights (2.1%)

7-29 Nights

6 listings

2.1% of total

30+ Nights (13.6%)

30+ Nights

38 listings

13.6% of total

Key Insights

  • The most prevalent minimum stay requirement in Ponta do Sol is 4-6 Nights, adopted by 54.6% of listings. This highlights the market's preference for longer commitments.
  • Very short stays (1-2 nights) are less common (13.5%), suggesting hosts prefer slightly longer bookings to optimize turnover.
  • A significant segment (13.6%) caters to monthly stays (30+ nights) in Ponta do Sol, pointing to opportunities in the extended-stay market.

Recommendations

  • Align with the market by considering a 4-6 Nights minimum stay, as 54.6% of Ponta do Sol hosts use this setting.
  • If feasible, allowing 1-night stays, especially midweek or during low season, could capture last-minute bookings, as only 6.4% currently do.
  • Explore offering discounts for stays of 30+ nights to attract the 13.6% of the market seeking extended stays.
  • Adjust minimum nights based on seasonality – potentially shorter during low season and longer during peak demand periods in Ponta do Sol.

Ponta do Sol Airbnb Cancellation Policy Trends Analysis (2025)

Super Strict 60 Days

4 listings

1.5% of total

Super Strict 30 Days (10.3%)

Super Strict 30 Days

28 listings

10.3% of total

Flexible (11.8%)

Flexible

32 listings

11.8% of total

Moderate (21%)

Moderate

57 listings

21% of total

Firm (30.1%)

Firm

82 listings

30.1% of total

Strict (25.4%)

Strict

69 listings

25.4% of total

Cancellation Policy Insights for Ponta do Sol

  • The prevailing Airbnb cancellation policy trend in Ponta do Sol is Firm, used by 30.1% of listings.
  • A majority (55.5%) of hosts in Ponta do Sol utilize Firm or Strict policies, indicating a market where hosts prioritize booking security.

Recommendations for Hosts

  • Consider adopting a Firm policy to align with the 30.1% market standard in Ponta do Sol.
  • Regularly review your cancellation policy against competitors and market demand shifts in Ponta do Sol.

Ponta do Sol STR Booking Lead Time Analysis (2025)

Average Booking Lead Time by Month

Booking Lead Time Insights for Ponta do Sol

  • The overall average booking lead time for vacation rentals in Ponta do Sol is 78 days.
  • Guests book furthest in advance for stays during July (average 151 days), likely coinciding with peak travel demand or local events.
  • The shortest booking windows occur for stays in March (average 58 days), indicating more last-minute travel plans during this time.
  • Seasonally, Summer (124 days avg.) sees the longest lead times, while Winter (67 days avg.) has the shortest, reflecting typical travel planning cycles.

Recommendations for Hosts

  • Use the overall average lead time (78 days) as a baseline for your pricing and availability strategy in Ponta do Sol.
  • For July stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 151 days out to capitalize on advance planning.
  • Target marketing efforts for the Summer season well in advance (at least 124 days) to capture early planners.
  • Monitor your own booking lead times against these Ponta do Sol averages to identify opportunities for dynamic pricing adjustments.

Popular & Essential Airbnb Amenities in Ponta do Sol (2025)

Amenity Prevalence

Amenity Insights for Ponta do Sol

  • Essential amenities in Ponta do Sol that guests expect include: Wifi, Kitchen, TV. Lacking these (any) could significantly impact bookings.
  • Popular amenities like First aid kit, Hair dryer, Hot water are common but not universal. Offering these can provide a competitive edge.

Recommendations for Hosts

  • Ensure your listing includes all essential amenities for Ponta do Sol: Wifi, Kitchen, TV.
  • Prioritize adding missing essentials: Wifi, Kitchen, TV.
  • Consider adding popular differentiators like First aid kit or Hair dryer 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 Ponta do Sol to stay competitive.

Ponta do Sol 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 Ponta do Sol

  • The typical guest profile for Airbnb in Ponta do Sol consists of predominantly international visitors (98%), with top international origins including France, typically belonging to the Post-2000s (Gen Z/Alpha) group (50%), primarily speaking English or German.
  • Domestic travelers account for 1.7% of guests.
  • Key international markets include Germany (21.9%) and France (16.7%).
  • Top languages spoken are English (42.1%) followed by German (16.2%).
  • 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 France.
  • 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 Ponta do Sol 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
Ribeira Brava181$3,764$195.8665%
Funchal2,048$3,748$219.0260%
Câmara de Lobos120$3,297$194.0457%
Santa Cruz472$3,009$184.5258%
Calheta917$2,970$189.9860%
São Vicente253$2,425$127.9164%
Santana146$2,300$155.8657%
Porto Moniz137$2,037$122.7460%
Machico215$1,796$113.9660%
Porto Santo143$1,744$177.7947%

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