Colombo Airbnb Market Analysis 2025: Short Term Rental Data & Vacation Rental Statistics in Western Province, Sri Lanka
Is Airbnb profitable in Colombo in 2025? Explore comprehensive Airbnb analytics for Colombo, Western Province, Sri Lanka to uncover income potential. This 2025 STR market report for Colombo, based on AirROI data from April 2024 to March 2025, reveals key trends in the market of 483 active listings.
Whether you're considering an Airbnb investment in Colombo, optimizing your existing vacation rental, or exploring rental arbitrage opportunities, understanding the Colombo 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 Colombo Airbnb Performance Metrics Overview
Monthly Airbnb Revenue Variations & Income Potential in Colombo (2025)
Understanding the monthly revenue variations for Airbnb listings in Colombo 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 Colombo is typically April, while October often presents the lowest earnings, highlighting opportunities for strategic pricing adjustments during shoulder and low seasons. Explore the typical Airbnb income in Colombo across different performance tiers:
- Best-in-class properties (Top 10%) achieve $2,205+ monthly, often utilizing dynamic pricing and superior guest experiences.
- Strong performing properties (Top 25%) earn $1,377 or more, indicating effective management and desirable locations/amenities.
- Typical properties (Median) generate around $675 per month, representing the average market performance.
- Entry-level properties (Bottom 25%) see earnings around $296, often with potential for optimization.
Average Monthly Airbnb Earnings Trend in Colombo
Colombo Airbnb Occupancy Rate Trends (2025)
Maximize your bookings by understanding the Colombo STR occupancy trends. Seasonal demand shifts significantly influence how often properties are booked. Typically, Julysees 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 Colombo:
- Best-in-class properties (Top 10%) achieve 82%+ occupancy, indicating high desirability and potentially optimized availability.
- Strong performing properties (Top 25%) maintain 66% or higher occupancy, suggesting good market fit and guest satisfaction.
- Typical properties (Median) have an occupancy rate around 39%.
- Entry-level properties (Bottom 25%) average 18% occupancy, potentially facing higher vacancy.
Average Monthly Occupancy Rate Trend in Colombo
Average Daily Rate (ADR) Airbnb Trends in Colombo (2025)
Effective short term rental pricing strategy in Colombo involves understanding monthly ADR fluctuations. The Average Daily Rate (ADR) for Airbnb in Colombo typically peaks in December 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 $127+ per night, often due to premium features or locations.
- Strong performing properties (Top 25%) achieve nightly rates of $89 or more.
- Typical properties (Median) charge around $55 per night.
- Entry-level properties (Bottom 25%) earn around $32 per night.
Average Daily Rate (ADR) Trend by Month in Colombo
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Airbnb Seasonality Analysis & Trends in Colombo (2025)
Peak Season (April, May, July)
- Revenue averages $1,234 per month
- Occupancy rates average 44.8%
- Daily rates average $72
Shoulder Season
- Revenue averages $980 per month
- Occupancy maintains around 43.9%
- Daily rates hold near $74
Low Season (March, September, October)
- Revenue drops to average $761 per month
- Occupancy decreases to average 37.6%
- Daily rates adjust to average $73
Seasonality Insights for Colombo
- The Airbnb seasonality in Colombo 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 Colombo's highest earning potential, with monthly revenues capable of climbing to $1,331, occupancy reaching a high of 50.2%, and ADRs peaking at $77.
- 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 $735, occupancy could drop to 33.9%, and ADRs may adjust down to $72.
- 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 Colombo.
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 Colombo seasonality benchmarks and adjust your pricing and availability strategy accordingly.
Best Areas for Airbnb Investment in Colombo (2025)
Exploring the top neighborhoods for short-term rentals in Colombo? 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 |
|---|---|---|
| Fort | A historic neighborhood that is home to several colonial-era buildings, Fort is a hub for tourism and commerce, attracting visitors interested in Sri Lankan history and culture. | Dutch Hospital, Sri Lanka National Museum, Galle Face Green, Colombo Lighthouse, Cargills Millenia |
| Mount Lavinia | Famous for its stunning beach and vibrant nightlife, Mount Lavinia is popular among locals and tourists alike, making it a prime location for Airbnb hosting. | Mount Lavinia Beach, Mount Lavinia Hotel, Lavinia Lighthouse, Local seafood restaurants, Nightclubs and bars |
| Colpetty | Known for its cosmopolitan vibe, Colpetty is a bustling area with a mix of local culture and international influences, making it appealing to diverse travelers. | Grocery stores, Cafes and restaurants, Wellawatte Beach, Local markets, Shopping centers |
| Borella | A more residential area that offers a glimpse into local life, Borella is close to attractions while providing a quieter environment for guests. | Kotte Rajamaha Viharaya, Cemetery of the Old Dutch Reformed Church, Local parks, Restaurants and cafes |
| Nugegoda | A suburban area that is gaining popularity for its accessibility and local charm, ideal for travelers looking for a balance between city and suburb. | Nugegoda Junction, Local markets, Cafes, Community parks |
| Kottawa | Located near the Southern Expressway, Kottawa is an up-and-coming area for investment, catering to both tourists and business travelers. | Kottawa Temple, Shopping malls, Cafes and restaurants, Local parks |
| Galle Face | An iconic promenade along the coast, Galle Face attracts many visitors for leisurely walks, making it a great area for short-term rentals. | Galle Face Green, Galle Face Hotel, Colombo skate park, Bicycle rentals, Food stalls |
| Wellawatte | A vibrant beachfront area that offers a mix of local and international cuisine, Wellawatte is increasingly popular with tourists looking for affordable stays. | Wellawatte Beach, Local seafood restaurants, Shopping complex, Cafes |
Understanding Airbnb License Requirements & STR Laws in Colombo (2025)
While Colombo, Western 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 Colombo to ensure full compliance before hosting.
(Source: AirROI data, 2025, finding no licensed listings among those analyzed)
Top Performing Airbnb Properties in Colombo (2025)
Benchmark your potential! Explore examples of top-performing Airbnb properties in Colombobased on Trailing Twelve Month (TTM) revenue. Analyze their characteristics, revenue, occupancy rate, and ADR to understand what drives success in this market.
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
Oasis in the city-pool-Unit C
Entire Place • 2 bedrooms
Stunning Sea View Apt in the heart of Colombo
Entire Place • 2 bedrooms
Oasis in the city-pool-Unit B
Entire Place • 2 bedrooms
Quiet and good location
Entire Place • 1 bedroom
Note: Performance varies based on location, size, amenities, seasonality, and management quality. Data reflects the past 12 months.
Top Performing Airbnb Hosts in Colombo (2025)
Learn from the best! This table showcases top-performing Airbnb hosts in Colombo 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 |
|---|---|---|---|---|
| Cass | 3 | $136,085 | 30 | 5.00/5.0 |
| Thushi | 5 | $123,029 | 428 | 4.94/5.0 |
| Priyantha | 4 | $112,759 | 190 | 4.72/5.0 |
| Hashantha | 3 | $57,539 | 18 | 3.29/5.0 |
| Srilax | 3 | $54,778 | 303 | 4.88/5.0 |
| Mary | 5 | $51,104 | 245 | 4.66/5.0 |
| Nayantara | 3 | $50,008 | 17 | 1.67/5.0 |
| Shayani | 2 | $47,310 | 137 | 4.96/5.0 |
| Nidaal | 2 | $44,806 | 112 | 4.89/5.0 |
| Deshal | 6 | $43,765 | 392 | 4.83/5.0 |
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 Colombo.
Dive Deeper: Advanced Colombo STR Market Data (2025)
Ready to unlock more insights? AirROI provides access to advanced metrics and comprehensive Airbnb data for Colombo. Explore detailed analytics beyond this report to refine your investment strategy, optimize pricing, and maximize your vacation rental profits.
Explore Advanced MetricsColombo Short-Term Rental Market Composition (2025): Property & Room Types
Room Type Distribution
Property Type Distribution
Market Composition Insights for Colombo
- The Colombo Airbnb market composition is heavily skewed towards Entire Home/Apt listings, which make up 77% of the 483 active rentals. This indicates strong guest preference for privacy and space.
- Looking at the property type distribution in Colombo, Apartment/Condo properties are the most common (71.8%), reflecting the local real estate landscape.
- Houses represent a significant 15.9% portion, catering likely to families or larger groups.
- The presence of 8.5% Hotel/Boutique listings indicates integration with traditional hospitality.
- Smaller segments like others, unique stays (combined 3.7%) offer potential for unique stay experiences.
Colombo Airbnb Room Capacity Analysis (2025): Bedroom Distribution
Distribution of Listings by Number of Bedrooms
Room Capacity Insights for Colombo
- The dominant room capacity in Colombo is 2 bedrooms listings, making up 31.3% of the market. This suggests a strong demand for properties suitable for couples or solo travelers.
- Together, 2 bedrooms and 1 bedroom properties represent 58.6% of the active Airbnb listings in Colombo, indicating a high concentration in these sizes.
- A significant 29.2% of listings offer 3+ bedrooms, catering to larger groups and families seeking more space in Colombo.
Colombo Vacation Rental Guest Capacity Trends (2025)
Distribution of Listings by Guest Capacity
Guest Capacity Insights for Colombo
- The most common guest capacity trend in Colombo vacation rentals is listings accommodating 4 guests (25.3%). This suggests the primary traveler segment is likely small families or groups.
- Properties designed for 4 guests and 2 guests dominate the Colombo STR market, accounting for 49.5% of listings.
- 23.6% of properties accommodate 6+ guests, serving the market segment for larger families or group travel in Colombo.
- On average, properties in Colombo are equipped to host 3.7 guests.
Colombo Airbnb Booking Patterns (2025): Available vs. Booked Days
Available Days Distribution
Booked Days Distribution
Booking Pattern Insights for Colombo
- The most common availability pattern in Colombo falls within the 271-366 days range, representing 54.2% of listings. This suggests many properties have significant open periods on their calendars.
- Approximately 78.4% 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 Colombo (31.9%), reflecting common guest stay durations or potential owner blocking patterns.
- A notable 23.4% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.
Colombo Airbnb Minimum Stay Requirements Analysis
Distribution of Listings by Minimum Night Requirement
1 Night
181 listings
40.3% of total
2 Nights
118 listings
26.3% of total
3 Nights
49 listings
10.9% of total
4-6 Nights
43 listings
9.6% of total
7-29 Nights
17 listings
3.8% of total
30+ Nights
41 listings
9.1% of total
Key Insights
- The most prevalent minimum stay requirement in Colombo is 1 Night, adopted by 40.3% of listings. This highlights the market's preference for shorter, flexible bookings.
- A strong majority (66.6%) of the Colombo Airbnb data shows acceptance of very short stays (1-2 nights), indicating a dynamic, high-turnover market.
Recommendations
- Align with the market by considering a 1 Night minimum stay, as 40.3% of Colombo hosts use this setting.
- Explore offering discounts for stays of 30+ nights to attract the 9.1% of the market seeking extended stays.
- Adjust minimum nights based on seasonality – potentially shorter during low season and longer during peak demand periods in Colombo.
Colombo Airbnb Cancellation Policy Trends Analysis (2025)
Flexible
137 listings
38.1% of total
Moderate
139 listings
38.6% of total
Firm
32 listings
8.9% of total
Strict
52 listings
14.4% of total
Cancellation Policy Insights for Colombo
- The prevailing Airbnb cancellation policy trend in Colombo is Moderate, used by 38.6% of listings.
- The market strongly favors guest-friendly terms, with 76.7% of listings offering Flexible or Moderate policies. This suggests guests in Colombo may expect booking flexibility.
Recommendations for Hosts
- Consider adopting a Moderate policy to align with the 38.6% market standard in Colombo.
- Using a Strict policy might deter some guests, as only 14.4% of listings use it. Evaluate if potential revenue protection outweighs possible lower booking rates.
- Regularly review your cancellation policy against competitors and market demand shifts in Colombo.
Colombo STR Booking Lead Time Analysis (2025)
Average Booking Lead Time by Month
Booking Lead Time Insights for Colombo
- The overall average booking lead time for vacation rentals in Colombo is 35 days.
- Guests book furthest in advance for stays during December (average 48 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, Winter (45 days avg.) sees the longest lead times, while Spring (33 days avg.) has the shortest, reflecting typical travel planning cycles.
Recommendations for Hosts
- Use the overall average lead time (35 days) as a baseline for your pricing and availability strategy in Colombo.
- For December stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 48 days out to capitalize on advance planning.
- Target marketing efforts for the Winter season well in advance (at least 45 days) to capture early planners.
- Monitor your own booking lead times against these Colombo averages to identify opportunities for dynamic pricing adjustments.
Popular & Essential Airbnb Amenities in Colombo (2025)
Amenity Prevalence
Amenity Insights for Colombo
- Essential amenities in Colombo that guests expect include: Wifi, Air conditioning. 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 Colombo: Wifi, Air conditioning.
- Prioritize adding missing essentials: Wifi, Air conditioning.
- 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 Colombo to stay competitive.
Colombo Airbnb Guest Demographics & Profile Analysis (2025)
Guest Profile Summary for Colombo
- The typical guest profile for Airbnb in Colombo consists of predominantly international visitors (97%), with top international origins including India, typically belonging to the Post-2000s (Gen Z/Alpha) group (50%), primarily speaking English or German.
- Domestic travelers account for 3.5% of guests.
- Key international markets include United Kingdom (15.7%) and India (12.1%).
- Top languages spoken are English (46.6%) followed by German (7.5%).
- 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 India.
- 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 Colombo 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 |
|---|---|---|---|---|
| Kamburugamuwa | 10 | $3,185 | $482.39 | 28% |
| Ranna | 10 | $2,509 | $255.98 | 36% |
| Madampagama | 23 | $2,268 | $249.70 | 40% |
| Walgama | 52 | $2,177 | $129.25 | 52% |
| Mawella | 10 | $1,984 | $205.99 | 39% |
| Thiththagalla | 10 | $1,915 | $183.18 | 50% |
| Maberiyatenna | 16 | $1,889 | $444.63 | 28% |
| Rajgama | 30 | $1,872 | $167.42 | 36% |
| Goviyapana | 36 | $1,748 | $179.16 | 37% |
| Kathaluwa | 59 | $1,587 | $244.62 | 35% |