India is seeing an Airbnb gold rush where people are turning their homes into businesses by renting them out for short periods. It has created platforms that have changed the real estate investment and speculation, especially for people who are interested in acquiring properties and using them to generate income than just for accommodation.
The Indian market for short-term rentals is expected to reach $135 billion by 2024 and is projected to grow at 10.8% CAGR till 2034 due to the lack of hotels as India has only 2.6 hotels per 100,000 population. This has led many people to take advantage of the situation and earn more from short-term rentals than from long-term leases.
For example, Ankit Lodha, the owner of LA Empire, discovered that Airbnb yields five times more than a regular lease. In the same manner, Anirudh Sharma, who manages 15 properties in Noida, pointed out that a studio apartment that can be rented out for Rs 20,000-25,000 per month in the conventional market could generate Rs 50,000-60,000 on Airbnb during peak seasons.
Goa, Bangalore and Rishikesh are the most popular destinations for vacation rentals in India and the market is predicted to reach $3.22 billion by 2029. This has also been a boon for women as 30% of Airbnb hosts in India have generated INR 2.60 crore in 2024, and many of them have five-star ratings.
Even celebrities like Shah Rukh Khan and Janhvi Kapoor are getting into the short-term rental game, making it more enticing. However, there are some issues that hosts face, such as legal issues, repair costs, and competition.
Nevertheless, the gold rush on Airbnb is still ongoing and is influencing the hospitality industry in India as investors try to find new markets and new ways to offer luxury experiences.
