Karachi

As of June 2026, Karachi has 704 active Airbnb and VRBO listings. This represents a 17% increase from the previous year.

The average Airbnb or VRBO in Karachi generates PKR640K per year. High-performing properties earn PKR3.3M/year, while low-performing properties earn PKR169K/year. The massive variance between top-tier and average earners suggests that market returns are highly skewed, where only a select few properties capture the majority of demand despite a stagnant two-year growth cycle.

Airbnb and VRBO can be profitable in Karachi. Average annual revenue is PKR640K with 11% occupancy. High-performing properties earn up to PKR3.3M/year. With an 11% occupancy rate, the market displays significant underutilization, indicating that top earners are likely capturing specific, high-intent segments rather than benefiting from broad market demand.

The average occupancy rate for Airbnbs and VRBOs in Karachi is 11%. This occupancy level, combined with an average nightly rate of PKR21K, results in a RevPAR (revenue per available room) of PKR2K per day.

4+ bedroom properties demonstrate the strongest performance in Karachi, with annual revenue of PKR1.1M. These properties balance operating costs and rental demand most effectively in the Karachi market. Property performance varies significantly by location, amenities, and management quality.

Short-term rental regulations vary by jurisdiction in the Karachi area. Karachi: Lenient. No specific short-term rental regulations or licensing requirements. Operates in regulatory gray area with minimal government oversight. Property rentals generally unregulated beyond standard lease laws. Enforcement virtually non-existent - hosts operate freely without permits or restrictions. No caps, registration, or owner-occupancy rules enforced. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Karachi Airbnb and VRBO market is currently showing oversaturated conditions. Supply has grown 17% year-over-year, while RevPAR has decreased 47%. This indicates supply growth outpacing demand, pressuring returns. The sharp decline in revenue despite increasing supply points to a market struggling to absorb new inventory, leading to heightened competition for a static traveler base.

Launch around October, 2-3 months before peak winter season (January peaks). This pre-peak timing lets you build reviews when competition is -10% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (June-May) when gaining traction is harder.

The most common amenities in Karachi listings include: Kitchen (99%), Air Conditioning (99%), Tv (88%), Washing Machine (54%), Parking (48%). Amenities that boost revenue the most include Washing Machine, Bbq, Heating, with Washing Machine properties earning approximately 77% more (PKR4.8M/year vs PKR2.7M/year).

Monthly estimated revenue per listing in Karachi over the last 12 months: May: PKR30K, June: PKR32K, July: PKR42K, August: PKR50K, September: PKR35K, October: PKR48K, November: PKR49K, December: PKR75K, January: PKR81K, February: PKR35K, March: PKR31K, April: PKR45K. 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 Karachi is PKR21K, up 22% year-over-year. By property size: 1-bedroom properties average PKR11K/night, 2-bedroom properties average PKR18K/night, 3-bedroom properties average PKR27K/night, 4+ bedroom properties average PKR44K/night. Rates peak in April and are lowest in February.

Guests in Karachi book an average of 14 days in advance, down 34% from last year. By property size: 1-bedroom: 11 days, 2-bedroom: 12 days, 3-bedroom: 18 days, 4+ bedroom: 17 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Karachi Airbnb and VRBO market has seen the following changes: supply grew 17%, revenue per listing decreased 47%, occupancy fell 47%, average nightly rates increased 22%, and lead time decreased 34%. This divergence between rising nightly rates and falling occupancy suggests that hosts are attempting to offset lower demand with price hikes, further destabilizing booking velocity.

In Karachi, Saturday sees the highest booking demand while Tuesday has the lowest. Nightly rates peak on Saturday and are lowest on Wednesday. Weekends show 6% higher occupancy than weekdays.