Madrid

As of May 2026, Madrid, Toledo, Segovia have 9,812 active Airbnb and VRBO listings. This represents a 26% decrease from the previous year.

The average Airbnb or VRBO in Madrid generates €47K per year. High-performing properties earn €100K/year, while low-performing properties earn €15K/year. This wide revenue variance suggests that market returns are highly sensitive to property positioning, as the supply contraction of 25.7% likely concentrates demand toward premium assets.

Airbnb and VRBO can be profitable in Madrid. Average annual revenue is €47K with 53% occupancy. High-performing properties earn up to €100K/year. The 16% revenue growth alongside a significant decline in supply indicates that existing operators are capturing higher yield per unit in a less crowded market.

The average occupancy rate for Airbnbs and VRBOs in Madrid is 53%. This occupancy level, combined with an average nightly rate of €203, results in a RevPAR (revenue per available room) of €87 per day.

4+ bedroom properties demonstrate the strongest performance in Madrid, with annual revenue of €124K. These properties balance operating costs and rental demand most effectively in the Madrid market. Property performance varies significantly by location, amenities, and management quality.

Short-term rental regulations vary by jurisdiction in the Madrid area. Madrid: Strict. Registration mandatory, tourist apartments banned in most residential zones since 2019, must have independent entrance. Active enforcement with heavy fines and platform cooperation. Toledo: Moderate. Regional registration (Castilla-La Mancha), basic safety standards, municipal license required. Enforcement present but less aggressive than Madrid. Segovia: Moderate. Regional registration required, municipal communication needed, basic habitability standards. Standard enforcement, some unlicensed operations exist. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Madrid Airbnb and VRBO market is currently showing balanced with strong demand conditions. Supply has declined 26% year-over-year, while RevPAR has increased 16%. This indicates healthy demand growth outpacing supply, signaling that the market is currently favoring established listings as competitive pressure eases.

Launch around January, 2-3 months before peak fall season (April peaks). This pre-peak timing lets you build reviews when competition is 41% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (June-August) when gaining traction is harder.

The most common amenities in Madrid listings include: Kitchen (96%), Tv (93%), Air Conditioning (91%), Washing Machine (87%), Heating (80%). Amenities that boost revenue the most include Washing Machine, Air Conditioning, Tv, with Washing Machine properties earning approximately 28% more (€53K/year vs €41K/year).

Monthly estimated revenue per listing in Madrid over the last 12 months: May: €2K, June: €2K, July: €2K, August: €2K, September: €3K, October: €3K, November: €3K, December: €3K, January: €2K, February: €2K, March: €3K, April: €4K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Madrid is €203, up 24% year-over-year. By property size: 1-bedroom properties average €149/night, 2-bedroom properties average €237/night, 3-bedroom properties average €364/night, 4+ bedroom properties average €606/night. Rates peak in April and are lowest in August.

Guests in Madrid book an average of 37 days in advance, down 18% from last year. By property size: 1-bedroom: 34 days, 2-bedroom: 41 days, 3-bedroom: 43 days, 4+ bedroom: 45 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Madrid Airbnb and VRBO market has seen the following changes: supply declined 26%, revenue per listing increased 16%, occupancy fell 1%, average nightly rates increased 24%, and lead time decreased 18%. These metrics suggest a shift toward higher price elasticity, where shorter booking windows and increased rates are driving revenue despite stable occupancy.

In Madrid, Saturday sees the highest booking demand while Monday has the lowest. Nightly rates peak on Saturday and are lowest on Thursday. Weekends show 29% higher occupancy than weekdays.