Airbnb Market Analytics, Statistics and Data in Colombo, Western Province, Sri Lanka
Last updated: 2025-01-31
Looking to make more money with hosting or rental arbitraging Airbnbs, short-term rentals, vacation rentals in Colombo? 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 Colombo:
How much do Airbnb hosts make on average per month in Colombo?
The short-term rental market in Colombo 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 $726 per month
- Strong performing properties (top 25%) make $1,466 or more
- Best-in-class properties (top 10%) achieve $2,322+ monthly
- Entry-level properties (bottom 25%) typically earn around $320
Revenue Variations by Month
Occupancy Rates Throughout the Year in Colombo
The market in Colombo 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 39% occupancy rates
- Strong performing properties (top 25%) achieve 66% or higher
- Best-in-class properties (top 10%) reach 84%+occupancy
- Entry-level properties (bottom 25%) average around 18%
Occupancy Variations by Month
Average Daily Rates Seasonal Trends in Colombo
Daily rates in Colombo 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 $56 per night
- Strong performing properties (top 25%) secure $88 or more
- Best-in-class properties (top 10%) pull in $127+ per night
- Entry-level properties (bottom 25%) earn around $34
Daily Rate Variations by Month
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Seasonality patterns in Colombo
Peak Season (April, March, February)
- Revenue peaks at $1336.25 per month
- Occupancy rates reach 50.02%
- Daily rates average $79.25
Shoulder Season
- Revenue averages $1069.99 per month
- Occupancy maintains 42.72%
- Daily rates hold at $74.55
Low Season (August, October, September)
- Revenue drops to $771.70 per month
- Occupancy decreases to 33.67%
- Daily rates adjust to $72.35
Is it still profitable to do Airbnb in Colombo in 2025?
Yes! Colombo demonstrates moderate seasonality with good off-peak opportunities, featuring a growing occupancy rate of 43% and monthly revenue averaging $1070 and With 490 active listings, the market shows established demand while maintaining room for growth. 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 (families on vacation, festival goers, adventure tourists, international visitors)
- Create targeted promotional campaigns to drive occupancy
Top Places to Start Airbnb in Colombo
| Area | Why Choose This Area | Key Attractions |
|---|---|---|
| Colombo Fort | Historical district of Colombo with colonial architecture, bustling markets, and proximity to key attractions. Ideal for tourists interested in history and culture, and business travelers. | Galle Face Green, Old Dutch Hospital, Colombo Museum, Fort Railway Station, Pettah Market |
| Mount Lavinia | Famous for its beach and the iconic Mount Lavinia Hotel. A perfect location for vacationers looking for a beach experience just outside the city. | Mount Lavinia Beach, Mount Lavinia Hotel, Sri Lanka Testing and Training Centre, Diving and snorkeling opportunities, Local seafood restaurants |
| Bambalapitiya | A vibrant neighborhood with a mix of residential and commercial activities. Known for its shopping opportunities and proximity to the beach, it attracts both locals and tourists. | Bambalapitiya Beach, Majestic City Mall, Shopping complexes, Cafes and eateries, Local markets |
| Dehiwala | A residential and commercial area popular among families and expatriates. Close to various attractions including the National Zoological Gardens. | National Zoological Gardens, Dehiwala Beach, Shopping malls, Local eateries, Cultural centers |
| Kollupitiya | A business district with many hotels, restaurants, and shopping centers. Attracts business travelers and expatriates due to its central location. | Liberty Plaza, Cinnamon Grand Hotel, Cinnamon Lake, Shopping centers, Restaurants and bars |
| Nugegoda | A residential suburb with a mix of local culture and modern amenities. Offers a unique experience for visitors wanting to see the local lifestyle. | Nugegoda Market, Local shops, Community parks, Restaurants and cafes, Cultural festivities |
| Wellawatte | A bustling suburb known for its multicultural vibe. Home to many expats and known for its variety of food options and beach access. | Wellawatte Beach, Local restaurants, Shopping areas, Cultural festivals, Religious sites |
| Tamarind Tree | A serene area known for its greenery and peaceful atmosphere. Attracts nature lovers and families looking for a quiet place to stay. | Local parks, Nature trails, Family-friendly restaurants, Cultural heritage sites, Proximity to major roads |
Do you need a license for Airbnb in Colombo?
We recommend checking directly with Colombo's local government regarding short-term rental licensing requirements. Current market data shows limited licensing information (0% of listings), making it essential to verify current regulations before starting your Airbnb business.
Top Performing Airbnb Properties in Colombo
62nd floor apart with sea view
Entire Place • 3 bedrooms
VAUX Park Street 4 Bedroom Penthouse duplex 300m²
Entire Place • 4 bedrooms
VAUX Park Street 3 Bedroom + 2 Bathroom Loft 130m²
Entire Place • 3 bedrooms
Beautiful Villa & Garden with Home Cook, 12 Guests
Entire Place • 6 bedrooms
Oasis in the city-pool-Unit C
Entire Place • 2 bedrooms
Stunning Sea View Apt in the heart of Colombo
Entire Place • 2 bedrooms
Top Performing Professional Hosts in Colombo
| Host Name | Properties | Grossing Revenue | Stay Reviews | Avg Rating |
|---|---|---|---|---|
| Cass | 3 | $158,362 | 30 | 5.00/5.0 |
| Thushi | 5 | $116,191 | 428 | 4.94/5.0 |
| Priyantha | 4 | $105,101 | 190 | 4.72/5.0 |
| Rashinthe | 1 | $86,887 | 19 | 4.42/5.0 |
| Hashantha | 3 | $70,319 | 18 | 3.29/5.0 |
| Srilax | 3 | $56,296 | 303 | 4.88/5.0 |
| Nidaal | 2 | $48,730 | 112 | 4.89/5.0 |
| Gayan | 4 | $48,277 | 26 | 2.40/5.0 |
| Mary | 5 | $46,835 | 245 | 4.66/5.0 |
| Deshal | 6 | $45,532 | 392 | 4.83/5.0 |
Additional analytics on vacation rental, real estate, short term rental data in Colombo
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 (75.7%), with apartment & condo and house properties comprising 87.3% of inventory
- Untapped potential in others, unique stays segments (3.7% combined)
Room Capacity Distribution
Analysis of 490 properties in Colombo shows that 2 bedrooms properties are most prevalent, making up 31.2% of the market. The market tends to favor smaller properties, with 2 bedrooms and 1 bedroom together representing 59.0% of all listings.
Key Insights
- Most common: 2 bedrooms (31.2%)
- Least common: 5+ bedrooms (2.4%)
- Market concentration: 59.0% in top 2 sizes
- Market skew: Favors smaller properties
Guest Capacity Distribution
Analysis of 490 properties in Colombo reveals that 4 guests properties dominate the market, representing 24.9% of all listings. The average property accommodates 3.7 guests, with a clear trend towards larger guest capacities. Properties accommodating 4 guests and 2 guests make up 48.8% of the market.
Key Insights
- Most common capacity: 4 guests (24.9% of market)
- Least common capacity: 7 guests (0.8% of market)
- Average guest capacity: 3.7 guests per property
- Market concentration: 48.8% in top 2 capacity sizes
- Market segmentation: Predominantly larger guest capacities
Booking and Availability Patterns
Available Days Distribution
Booked Days Distribution
Among 490 properties in Colombo, the most common availability pattern is 271-366 days (55.3% of properties). For actual bookings, properties most frequently secure bookings for 1-30 days (33.1% of properties).
Key Insights
- Most common availability window: 271-366 days (55.3%)
- Most common booking duration: 1-30 days (33.1%)
- Properties with high availability (180+ days): 76.3%
- Properties with long-term bookings (180+ days): 24.9%
Minimum Stay Distributions
1 Night
192 listings
42.7% of total
2 Nights
123 listings
27.3% of total
3 Nights
59 listings
13.1% of total
4-6 Nights
40 listings
8.9% of total
7-29 Nights
16 listings
3.6% of total
30+ Nights
20 listings
4.4% of total
Key Insights
- Short stays (1-2 nights) dominate the market at 70.0%
- Mid-length stays (4-6 nights) represent 8.9% of listings
- Monthly+ stays (4.4%) suggest a stable extended-stay market
- High market flexibility with 83.1% 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
- Implement different minimum stays for weekends vs. weekdays
Cancellation Policy Distribution
Flexible
141 listings
38.7% of total
Moderate
138 listings
37.9% of total
Firm
32 listings
8.8% of total
Strict
53 listings
14.6% of total
Key Insights
- Flexible is the preferred policy at 38.7% of listings
- Guest-friendly policies (Flexible & Moderate) dominate at 76.6% of the market
- Strong market consensus around Flexible policies
- Firm policies are least common at 8.8% of listings
Recommendations
- Consider starting with a Flexible policy to align with market preferences
- Strong market preference for Flexible 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 Dec, Jan, Feb, averaging 45 days
- Shortest booking windows are in Sep, Jun, May, averaging 28 days
- Winter shows the longest average booking window at 45 days, while Fall has the shortest at 34 days
Recommendations
- Implement dynamic pricing strategies for Winter bookings at least 45 days in advance
- Consider early bird discounts during Fall to encourage longer lead times
- Focus on last-minute booking promotions during Sep-May when lead times are shortest
Popular Airbnb Amenities in Colombo
Below is the distribution of amenities across listings in Colombo:
Traveler Demographics
Key Insights
- Domestic travelers make up 3.3% of total guests, indicating a mostly international-driven market.
- Primary international markets: India (22%) and United States (18%)
- English is the top language at 62.9%, followed by German (10.8%)
- Notable demographic segment in <=1950s (Pre-1950s (Silent Gen)) at 3.9%
Recommendations
- Target marketing campaigns for London and England markets
- Develop localized content for India and United States
- Prioritize English and German 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 Colombo. These nearby markets offer diverse opportunities for property investors and hosts:
| Market | Properties | Monthly Revenue | Daily Rate | Occupancy |
|---|---|---|---|---|
| Ranna | 10 | $2,289 | $244.11 | 36% |
| Madampagama | 23 | $2,209 | $232.86 | 42% |
| Kamburugamuwa | 10 | $2,180 | $471.44 | 26% |
| Walgama | 47 | $2,138 | $127.80 | 49% |
| Mawella | 10 | $1,718 | $191.26 | 42% |
| Rajgama | 30 | $1,563 | $167.64 | 33% |
| Goviyapana | 37 | $1,552 | $171.67 | 37% |
| Seenigama | 13 | $1,540 | $115.59 | 30% |
| Talpe | 104 | $1,513 | $243.26 | 33% |
| Hunnadeniya | 10 | $1,441 | $105.41 | 48% |
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