Kandy Airbnb Market Analysis 2025: Short Term Rental Data & Vacation Rental Statistics in Central Province, Sri Lanka
Is Airbnb profitable in Kandy in 2025? Explore comprehensive Airbnb analytics for Kandy, Central Province, Sri Lanka to uncover income potential. This 2025 STR market report for Kandy, based on AirROI data from April 2024 to March 2025, reveals key trends in the niche market of 198 active listings.
Whether you're considering an Airbnb investment in Kandy, optimizing your existing vacation rental, or exploring rental arbitrage opportunities, understanding the Kandy Airbnb data is crucial. Leveraging the low regulation environment is key to maximizing your short term rental income potential. Let's dive into the specifics.
Key Kandy Airbnb Performance Metrics Overview
Monthly Airbnb Revenue Variations & Income Potential in Kandy (2025)
Understanding the monthly revenue variations for Airbnb listings in Kandy 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 Kandy is typically May, while September often presents the lowest earnings, highlighting opportunities for strategic pricing adjustments during shoulder and low seasons. Explore the typical Airbnb income in Kandy across different performance tiers:
- Best-in-class properties (Top 10%) achieve $1,570+ monthly, often utilizing dynamic pricing and superior guest experiences.
- Strong performing properties (Top 25%) earn $762 or more, indicating effective management and desirable locations/amenities.
- Typical properties (Median) generate around $323 per month, representing the average market performance.
- Entry-level properties (Bottom 25%) see earnings around $131, often with potential for optimization.
Average Monthly Airbnb Earnings Trend in Kandy
Kandy Airbnb Occupancy Rate Trends (2025)
Maximize your bookings by understanding the Kandy STR occupancy trends. Seasonal demand shifts significantly influence how often properties are booked. Typically, Februarysees the highest demand (peak season occupancy), while June 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 Kandy:
- Best-in-class properties (Top 10%) achieve 67%+ occupancy, indicating high desirability and potentially optimized availability.
- Strong performing properties (Top 25%) maintain 47% or higher occupancy, suggesting good market fit and guest satisfaction.
- Typical properties (Median) have an occupancy rate around 26%.
- Entry-level properties (Bottom 25%) average 13% occupancy, potentially facing higher vacancy.
Average Monthly Occupancy Rate Trend in Kandy
Average Daily Rate (ADR) Airbnb Trends in Kandy (2025)
Effective short term rental pricing strategy in Kandy involves understanding monthly ADR fluctuations. The Average Daily Rate (ADR) for Airbnb in Kandy typically peaks in January and dips lowest during May. 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 $96+ per night, often due to premium features or locations.
- Strong performing properties (Top 25%) achieve nightly rates of $57 or more.
- Typical properties (Median) charge around $31 per night.
- Entry-level properties (Bottom 25%) earn around $19 per night.
Average Daily Rate (ADR) Trend by Month in Kandy
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Airbnb Seasonality Analysis & Trends in Kandy (2025)
Peak Season (May, April, December)
- Revenue averages $837 per month
- Occupancy rates average 33.9%
- Daily rates average $50
Shoulder Season
- Revenue averages $666 per month
- Occupancy maintains around 33.3%
- Daily rates hold near $53
Low Season (July, September, October)
- Revenue drops to average $520 per month
- Occupancy decreases to average 26.7%
- Daily rates adjust to average $49
Seasonality Insights for Kandy
- The Airbnb seasonality in Kandy 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 Kandy's highest earning potential, with monthly revenues capable of climbing to $858, occupancy reaching a high of 39.7%, and ADRs peaking at $55.
- 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 $502, occupancy could drop to 23.6%, and ADRs may adjust down to $48.
- 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 Kandy.
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 Kandy seasonality benchmarks and adjust your pricing and availability strategy accordingly.
Best Areas for Airbnb Investment in Kandy (2025)
Exploring the top neighborhoods for short-term rentals in Kandy? 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 |
|---|---|---|
| Kandy Lake | Central to Kandy's cultural and spiritual heritage, offering stunning views and easy access to key attractions. Ideal for guests looking for a serene environment and historical exploration. | Kandy Lake, Temple of the Tooth, Royal Botanical Gardens, Udawatta Kele Sanctuary, Kandy City Center |
| Peradeniya | Home to the famous botanic gardens and close to key tourist spots. Attracts nature lovers and those interested in academic activities since it is near the University of Peradeniya. | Peradeniya Botanical Gardens, University of Peradeniya, Kandy–Mahaweli River bridge, Bahirawakanda Vihara Buddha Statue |
| Mahiyangana | Rich in history, this area is known for its ancient temples and stunning landscapes. A perfect spot for visitors looking to immerse themselves in local culture and nature. | Mahiyangana Rajamaha Viharaya, Samanala Wewa, Maha Saman Dewalaya |
| Gampola | A quaint town that provides a gateway to the surrounding nature reserves and trekking spots. Great for adventure seekers looking for hiking and rural charm. | Gampola town, Mahatma Gandhi Memorial Museum, Tea plantations, Hiking trails |
| Hanthana | Famous for its tea gardens and hiking trails. Very popular with nature enthusiasts and provides beautiful views of Kandy and beyond. | Hanthana Mountain Range, Hanthana Tea Factory, Scenic hiking trails |
| Doluwa | Known for its peaceful countryside vibes and proximity to historical attractions. Ideal for guests seeking tranquility while still being close to Kandy. | Doluwa Temple, Cultural sites, Local markets |
| Pilimathalawa | A peaceful village atmosphere with beautiful sceneries and local experiences. Good for guests looking to experience traditional Sri Lankan culture. | Local handloom factories, Traditional villages, Scenic views |
| Kundasale | A residential suburb of Kandy, offering local life experiences and close proximity to city amenities. Suitable for those looking for quieter stays with easy access to Kandy. | Local eateries, Kandy's public parks, Cultural experiences |
Understanding Airbnb License Requirements & STR Laws in Kandy (2025)
While Kandy, Central Province, Sri Lanka currently shows low STR regulations, specific Airbnb license requirements might still exist or change. Always verify the latest short term rental regulations and Airbnb license requirements directly with local government authorities for Kandy to ensure full compliance before hosting.
(Source: AirROI data, 2025, finding no licensed listings among those analyzed)
Top Performing Airbnb Properties in Kandy (2025)
Benchmark your potential! Explore examples of top-performing Airbnb properties in Kandybased on Trailing Twelve Month (TTM) revenue. Analyze their characteristics, revenue, occupancy rate, and ADR to understand what drives success in this market.
Luxury River View Villa
Entire Place • 6 bedrooms
Kingsman House
Entire Place • 8 bedrooms
Dendrobium House, large villa near Kandy
Private Room • 6 bedrooms
Ultramodern Riverfront Villa-2 Rooms/Infinity Pool
Private Room • 2 bedrooms
Riverside Wabi-Sabi Oasis: Zen Bathtub Bliss
Private Room • N/A
Fortuna Heritage Home - Whole Villa / Kandy City
Entire Place • 4 bedrooms
Note: Performance varies based on location, size, amenities, seasonality, and management quality. Data reflects the past 12 months.
Top Performing Airbnb Hosts in Kandy (2025)
Learn from the best! This table showcases top-performing Airbnb hosts in Kandy 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 |
|---|---|---|---|---|
| Wei 魏 | 6 | $140,807 | 1347 | 4.76/5.0 |
| Cavan | 1 | $92,242 | 11 | 5.00/5.0 |
| Dinesh | 8 | $83,332 | 2264 | 4.89/5.0 |
| Ravi | 1 | $57,320 | 12 | 5.00/5.0 |
| Host #101443988 | 1 | $40,283 | 0 | 0.00/5.0 |
| Sachintha | 6 | $38,907 | 356 | 4.25/5.0 |
| Poorna | 5 | $37,965 | 39 | 3.66/5.0 |
| Seniya | 1 | $21,788 | 4 | 2.75/5.0 |
| Suriyamal | 5 | $21,227 | 12 | 1.88/5.0 |
| Naeem | 1 | $20,402 | 74 | 4.84/5.0 |
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 Kandy.
Dive Deeper: Advanced Kandy STR Market Data (2025)
Ready to unlock more insights? AirROI provides access to advanced metrics and comprehensive Airbnb data for Kandy. Explore detailed analytics beyond this report to refine your investment strategy, optimize pricing, and maximize your vacation rental profits.
Explore Advanced MetricsKandy Short-Term Rental Market Composition (2025): Property & Room Types
Room Type Distribution
Property Type Distribution
Market Composition Insights for Kandy
- The Kandy Airbnb market composition is heavily skewed towards Private Room listings, which make up 59.6% of the 198 active rentals. This indicates strong guest preference for privacy and space.
- Looking at the property type distribution in Kandy, House properties are the most common (43.4%), reflecting the local real estate landscape.
- Houses represent a significant 43.4% portion, catering likely to families or larger groups.
- The presence of 32.3% Hotel/Boutique listings indicates integration with traditional hospitality.
- Smaller segments like others (combined 3.0%) offer potential for unique stay experiences.
Kandy Airbnb Room Capacity Analysis (2025): Bedroom Distribution
Distribution of Listings by Number of Bedrooms
Room Capacity Insights for Kandy
- The dominant room capacity in Kandy is 1 bedroom listings, making up 34.8% of the market. This suggests a strong demand for properties suitable for couples or solo travelers.
- Together, 1 bedroom and 2 bedrooms properties represent 50.0% of the active Airbnb listings in Kandy, indicating a high concentration in these sizes.
- A significant 24.8% of listings offer 3+ bedrooms, catering to larger groups and families seeking more space in Kandy.
Kandy Vacation Rental Guest Capacity Trends (2025)
Distribution of Listings by Guest Capacity
Guest Capacity Insights for Kandy
- The most common guest capacity trend in Kandy vacation rentals is listings accommodating 2 guests (24.7%). This suggests the primary traveler segment is likely couples or solo travelers.
- Properties designed for 2 guests and 4 guests dominate the Kandy STR market, accounting for 37.8% of listings.
- 20.2% of properties accommodate 6+ guests, serving the market segment for larger families or group travel in Kandy.
- On average, properties in Kandy are equipped to host 2.8 guests.
Kandy Airbnb Booking Patterns (2025): Available vs. Booked Days
Available Days Distribution
Booked Days Distribution
Booking Pattern Insights for Kandy
- The most common availability pattern in Kandy falls within the 271-366 days range, representing 63.6% of listings. This suggests many properties have significant open periods on their calendars.
- Approximately 85.8% of listings show high availability (181+ days open annually), indicating potential for increased bookings or specific owner usage patterns.
- For booked days, the 1-30 days range is most frequent in Kandy (31.3%), reflecting common guest stay durations or potential owner blocking patterns.
- A notable 14.1% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.
Kandy Airbnb Minimum Stay Requirements Analysis
Distribution of Listings by Minimum Night Requirement
1 Night
178 listings
91.3% of total
2 Nights
10 listings
5.1% of total
3 Nights
3 listings
1.5% of total
30+ Nights
4 listings
2.1% of total
Key Insights
- The most prevalent minimum stay requirement in Kandy is 1 Night, adopted by 91.3% of listings. This highlights the market's preference for shorter, flexible bookings.
- A strong majority (96.4%) of the Kandy Airbnb data shows acceptance of very short stays (1-2 nights), indicating a dynamic, high-turnover market.
- Dedicated monthly rentals (30+ nights) represent a small niche (2.1%), possibly an untapped area for hosts.
Recommendations
- Align with the market by considering a 1 Night minimum stay, as 91.3% of Kandy hosts use this setting.
- Adjust minimum nights based on seasonality – potentially shorter during low season and longer during peak demand periods in Kandy.
Kandy Airbnb Cancellation Policy Trends Analysis (2025)
Super Strict 60 Days
1 listings
0.6% of total
Flexible
86 listings
53.8% of total
Moderate
44 listings
27.5% of total
Firm
5 listings
3.1% of total
Strict
24 listings
15% of total
Cancellation Policy Insights for Kandy
- The prevailing Airbnb cancellation policy trend in Kandy is Flexible, used by 53.8% of listings.
- The market strongly favors guest-friendly terms, with 81.3% of listings offering Flexible or Moderate policies. This suggests guests in Kandy may expect booking flexibility.
Recommendations for Hosts
- Consider adopting a Flexible policy to align with the 53.8% market standard in Kandy.
- Given the high prevalence of Flexible policies (53.8%), offering this can enhance booking appeal, especially during shoulder seasons.
- Regularly review your cancellation policy against competitors and market demand shifts in Kandy.
Kandy STR Booking Lead Time Analysis (2025)
Average Booking Lead Time by Month
Booking Lead Time Insights for Kandy
- The overall average booking lead time for vacation rentals in Kandy is 29 days.
- Guests book furthest in advance for stays during April (average 42 days), likely coinciding with peak travel demand or local events.
- The shortest booking windows occur for stays in May (average 26 days), indicating more last-minute travel plans during this time.
- Seasonally, Summer (38 days avg.) sees the longest lead times, while Winter (33 days avg.) has the shortest, reflecting typical travel planning cycles.
Recommendations for Hosts
- Use the overall average lead time (29 days) as a baseline for your pricing and availability strategy in Kandy.
- For April stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 42 days out to capitalize on advance planning.
- Target marketing efforts for the Summer season well in advance (at least 38 days) to capture early planners.
- Monitor your own booking lead times against these Kandy averages to identify opportunities for dynamic pricing adjustments.
Popular & Essential Airbnb Amenities in Kandy (2025)
Amenity Prevalence
Amenity Insights for Kandy
- Essential amenities in Kandy that guests expect include: Wifi. Lacking these (this) could significantly impact bookings.
- Popular amenities like Essentials, Hot water, Free parking on premises are common but not universal. Offering these can provide a competitive edge.
Recommendations for Hosts
- Ensure your listing includes all essential amenities for Kandy: Wifi.
- Prioritize adding missing essentials: Wifi.
- Consider adding popular differentiators like Essentials 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 Kandy to stay competitive.
Kandy Airbnb Guest Demographics & Profile Analysis (2025)
Guest Profile Summary for Kandy
- The typical guest profile for Airbnb in Kandy consists of predominantly international visitors (98%), with top international origins including Germany, typically belonging to the Post-2000s (Gen Z/Alpha) group (50%), primarily speaking English or German.
- Domestic travelers account for 1.6% of guests.
- Key international markets include United Kingdom (17.6%) and Germany (15.3%).
- Top languages spoken are English (45%) followed by German (12%).
- 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 Germany.
- 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 Kandy 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 |
|---|---|---|---|---|
| Ranna | 10 | $2,509 | $255.98 | 36% |
| Madampagama | 23 | $2,268 | $249.70 | 40% |
| Thiththagalla | 10 | $1,915 | $183.18 | 50% |
| Maberiyatenna | 16 | $1,889 | $444.63 | 28% |
| Rajgama | 30 | $1,872 | $167.42 | 36% |
| Talpe | 104 | $1,562 | $255.26 | 31% |
| Sinimodara | 22 | $1,409 | $116.76 | 41% |
| Seenigama | 13 | $1,384 | $116.93 | 32% |
| Yodha Kandiya | 11 | $1,319 | $135.61 | 43% |
| Anniewatta | 14 | $1,126 | $62.87 | 46% |