Best Places to Invest in AirBNB (India)
Summary
If you've been hesitating whether to invest in Indian short-term rentals, it's 2026, and it's time to act. India's BNB market has matured quickly, and now the data conclusively shows where the money lies (and where it doesn't).
BNB - short for Bed-and-Breakfast style short-term rental accommodation listed on Airbnb, MakeMyTrip, and Booking.com - has grown to be one of the most searched real estate investment classifications in India. From beachfront villas to executive apartments, from Goa to Bangalore the prospect of this venture is now a reality. But there's a catch - location matters more than ever.
This guide details the best BNB investment locations in India, supported by the latest 2026 STR data from AirROI, Airbtics, and Anarock so you don't let any fads or fear get the better of you when making investment decisions.
Read:- This is how Airbnb started
Why BNB Investment in India Makes Sense Right Now
With India receiving 9.2M+ international tourists and domestic travel booming after the pandemic, short-term rentals are perfectly placed to capitalise. Increasingly, tourists value the extra space, privacy and authentic experience of a private property, over a hotel.
Data from Airbtics (Feb 2025 - Jan 2026) shows average Gross Rental Yield in India currently sitting at 5.09%, higher than the normal 3-4% yields for traditional residential buy-to-let. This is even higher in prime, location-critical STR locations.
Importantly, of the 100 STR markets monitored in India, 74 hold a "low regulation" characteristic, meaning licensing, tax, and other operational obligations are relatively simple, making this attractive for a first-time BNB investor.
Top Cities at a Glance
Below table is the most valuable BNB investing cities of India compared on active listing, average monthly income, ADR (Average Daily Rate) and Occupancy and Regulation
| # | City / Market | Active Listings | Avg. Revenue/mo | ADR (per night) | Occupancy | Regulation |
|---|---|---|---|---|---|---|
| 1 | Assagao, Goa | 307 | ₹1,30,000 | ₹17,900 | 33.0% | High |
| 2 | Mumbai, Maharashtra | 2,268 | ₹50,600 | ₹6,740 | 33.0% | Low |
| 3 | Candolim, Goa | 979 | ₹52,400 | ₹7,880 | 31.6% | High |
| 4 | Lonavala, Maharashtra | 420 | ₹90,000 | ₹20,800 | 20.2% | Low |
| 5 | Bengaluru, Karnataka | 3,145 | ₹22,500 | ₹3,510 | 30.6% | Low |
| 6 | New Delhi, Delhi | 1,926 | ₹34,800 | ₹5,320 | 29.3% | Low |
| 7 | Gurugram, Haryana | 1,089 | ₹25,700 | ₹6,080 | 21.7% | Low |
| 8 | Jaipur, Rajasthan | 1,092 | ₹24,400 | ₹5,410 | 22.9% | Low |
| 9 | Hyderabad, Telangana | 1,211 | ₹24,000 | ₹4,180 | 27.8% | Low |
| 10 | Pune, Maharashtra | 1,012 | ₹21,700 | ₹3,700 | 29.4% | Low |
Read:- How to Build AirBnb Business
Top BnB Investment Destinations in India
1. Goa - Assagao, Candolim & Siolim
BNB capital, undisputed, when it comes to India, would be Goa. 9,684 active listings with a median annual earning of 6.53 lakh per listing and occupancy of 46%. The occupancy of Goa is among the best in India.
Out of the 9,684 active listings in Goa, Assagao boasts of the highest monthly revenue per listing across the entire nation, raking in ₹1,30,000/month with an ADR of ₹17,900/night, designed for the affluent leisure tourist. Candolim offers a considerable ₹52,400/month across 979 listings. And Siolim ranks the highest in the entire nation with occupancy rate of 38.7%. The downside? You’d need a license and be registered with the authorities for tax purposes since Goa is the most highly regulated state in the country.
2. Mumbai, Maharashtra
It is the city where one should take the smart, urban gamble. This city boasts of 2,268 active listings, with an average monthly income of ₹50,600 per listing, a figure that is more than double that of Bengaluru-offering strong income potential at negligible regulation. There is a steady year-round flow of business travellers, domestic tourists and international tourists into this city which minimizes the seasonal slump in earnings, typical in only leisure tourist-centric destinations.
Rental yields in Mumbai are currently hovering at 4.15% which also indicates a solid underlying demand for property. Locations like Bandra, Andheri, Powai and the like make great BNB markets targeting corporate clientele.
3. Lonavala, Maharashtra
Lonavala features the highest Average Daily Rate of any BNB market in India at ₹20,800 per night, with an estimated ₹90,000/month at 20.2% occupancy. This hill-station resort town is nestled between the two major economic centers of Mumbai and Pune, catering to weekend-travelers who can pay a premium for well-furnished villas equipped with great views, pools and outdoor seating.
Lonavala is suitable for a seasonal investor: extraordinary revenues during high-season (Oct-Mar) are attainable, but off-season income streams need a strategic and disciplined approach to pricing.
4. Bengaluru, Karnataka
This metro takes the top spot for sheer number-a whopping 3,145 active STR listings and highest metro rental yield in India of 4.45% (Anarock). It’s the one of the markets with the largest base of investors, who often favor Bengaluru due to the stable and year-round demand and IT employees, startup founder, and business conference travelers.
While revenue at ₹22,500 a month is not as high as Goa or Mumbai, less regulation, 30.6% of continuous occupancy, and high appreciation potential solidifies its spot as a stable long term play.
5. Delhi, Gurugram & Jaipur
New Delhi has 1,926 STR listings, of which each listing currently earns an average monthly income of ₹34,800 (29.3% occupancy), making it the highest income-yielding market in the large NCR category. In Gurugram, the corporate belts of the city result in average monthly revenues of ₹25,700. Jaipur, often referred to as the Pink City, continues to emerge as a strong Airbnb and BNB destination. With 1,092 STR listings, the city continues to witness increasing demand from Indian and international tourists interested in exploring the region's historical monuments and heritage sites, bringing in monthly revenues of ₹24,400.
All three markets also have a low-regulation status and enjoy the advantage of constant tourist footfall due to respective reasons (government and diplomacy in Delhi, IT and corporate business in Gurugram and heritage in Jaipur).
What to Consider Before Investing
BNB income is strongly tied to a few variables which should be part of your due diligence:
Regulation risk: Markets such as Goa have "high" regulation ratings-which may entail a license requirement or limitations on the number of nights a property can be rented for. Always cross-check local municipality guidelines before purchasing a property.
Seasonality: Leisure dominated markets such as Goa and Lonavala see extremely high demand in peaks(Oct-March) however may witness steep declines in revenue in monsoons. Markets such as Bengaluru or Mumbai are more stable all through the year.
Platform fee and running costs: Airbnb is associated with a 3% hosts service fee. Combining this with the property manager fee (15-25% of the revenue), cleaning costs and other running charges of the property can decrease the actual return by as much as 20-30% as compared to figures of gross returns.
Nature of property: An entire home constitutes>90% of the inventory available in the market in Goa and clearly performs better than private rooms. A 1-2 bhk apartment in the city that is fully furnished will generally yield the best return on investment.
Final Word
The best places to invest in India for BNB in 2026 come down to your investment goal. For maximum income per listing, Assagao and Candolim in Goa are unmatched. For market stability and lower entry risk, Mumbai and Bengaluru are the clear frontrunners. For premium nightly pricing potential, Lonavala stands alone. And for long-term appreciation alongside solid rental income, the NCR corridor Delhi, Gurugram remains a powerful combination. India's STR market is maturing fast, and early investors in the right micro-markets are already reaping the rewards.
Sources
AirROI (2026) · Airbtics India Market Report (2025–26) · Anarock Property Consultants · Global Property Guide (Q4 2025) · Business Standard
