Islamabad Airbnb Market Analysis 2025: Short Term Rental Data & Vacation Rental Statistics in Islamabad Capital Territory, Pakistan

Source: AirROI
Last updated: 2025-03-31

Is Airbnb profitable in Islamabad in 2025? Explore comprehensive Airbnb analytics for Islamabad, Islamabad Capital Territory, Pakistan to uncover income potential. This 2025 STR market report for Islamabad, based on AirROI data from April 2024 to March 2025, reveals key trends in the market of 437 active listings.

Whether you're considering an Airbnb investment in Islamabad, optimizing your existing vacation rental, or exploring rental arbitrage opportunities, understanding the Islamabad 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 Islamabad Airbnb Performance Metrics Overview

Avg. Daily Rate (ADR)(?)
$51
The average rental revenue earned for an occupied room per day in Islamabad.
Occupancy Rate(?)
28.5%
Lower demand, potentially seasonal or market factors at play.
Median Annual Revenue(?)
$3,910
Typical annual income for an Airbnb listing in Islamabad. Factors like property type, size, and location influence actual earnings.
Revenue Growth YoY(?)
-3.1%
Slight decrease (-3.1%) vs. last year.
Peak Revenue Month(?)
May
The month with the highest average earnings, indicating peak season in Islamabad.
Lowest Revenue Month(?)
September
The month with the lowest average earnings, indicating the low season in Islamabad.
STR Regulation Level(?)
Low
Fewer regulations, offering more operational flexibility.
Active Airbnb Listings(?)
437
Total number of active short-term rentals listed.

Monthly Airbnb Revenue Variations & Income Potential in Islamabad (2025)

Understanding the monthly revenue variations for Airbnb listings in Islamabad 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 Islamabad is typically May, while September often presents the lowest earnings, highlighting opportunities for strategic pricing adjustments during shoulder and low seasons. Explore the typical Airbnb income in Islamabad across different performance tiers:

  • Best-in-class properties (Top 10%) achieve $1,512+ monthly, often utilizing dynamic pricing and superior guest experiences.
  • Strong performing properties (Top 25%) earn $863 or more, indicating effective management and desirable locations/amenities.
  • Typical properties (Median) generate around $360 per month, representing the average market performance.
  • Entry-level properties (Bottom 25%) see earnings around $147, often with potential for optimization.

Average Monthly Airbnb Earnings Trend in Islamabad

Islamabad Airbnb Occupancy Rate Trends (2025)

Maximize your bookings by understanding the Islamabad STR occupancy trends. Seasonal demand shifts significantly influence how often properties are booked. Typically, Maysees the highest demand (peak season occupancy), while March 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 Islamabad:

  • Best-in-class properties (Top 10%) achieve 65%+ occupancy, indicating high desirability and potentially optimized availability.
  • Strong performing properties (Top 25%) maintain 43% or higher occupancy, suggesting good market fit and guest satisfaction.
  • Typical properties (Median) have an occupancy rate around 23%.
  • Entry-level properties (Bottom 25%) average 11% occupancy, potentially facing higher vacancy.

Average Monthly Occupancy Rate Trend in Islamabad

Average Daily Rate (ADR) Airbnb Trends in Islamabad (2025)

Effective short term rental pricing strategy in Islamabad involves understanding monthly ADR fluctuations. The Average Daily Rate (ADR) for Airbnb in Islamabad typically peaks in July and dips lowest during March. 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 $104+ per night, often due to premium features or locations.
  • Strong performing properties (Top 25%) achieve nightly rates of $66 or more.
  • Typical properties (Median) charge around $39 per night.
  • Entry-level properties (Bottom 25%) earn around $24 per night.

Average Daily Rate (ADR) Trend by Month in Islamabad

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Airbnb Seasonality Analysis & Trends in Islamabad (2025)

Peak Season (May, June, April)
  • Revenue averages $989 per month
  • Occupancy rates average 33.7%
  • Daily rates average $55
Shoulder Season
  • Revenue averages $524 per month
  • Occupancy maintains around 28.6%
  • Daily rates hold near $55
Low Season (February, March, September)
  • Revenue drops to average $438 per month
  • Occupancy decreases to average 26.3%
  • Daily rates adjust to average $55

Seasonality Insights for Islamabad

  • The Airbnb seasonality in Islamabad shows highly seasonal trends requiring careful strategy. 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 Islamabad's highest earning potential, with monthly revenues capable of climbing to $1,039, occupancy reaching a high of 34.9%, and ADRs peaking at $56.
  • 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 $409, occupancy could drop to 24.8%, and ADRs may adjust down to $54.
  • 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 Islamabad.

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 Islamabad seasonality benchmarks and adjust your pricing and availability strategy accordingly.

Best Areas for Airbnb Investment in Islamabad (2025)

Exploring the top neighborhoods for short-term rentals in Islamabad? 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 / AreaWhy Host Here? (Target Guests & Appeal)Key Attractions & Landmarks
F-10
A popular residential area known for its parks, community feel, and proximity to shopping centers and restaurants. It attracts families and young professionals looking for a pleasant neighborhood.
F-10 Markaz, Lal Masjid, Peshawar Road Park, Nearby plazas and shopping malls, Various restaurants and cafes
F-7
Known for its vibrant cultural scene, F-7 is home to some of the best cafes, art galleries, and shops in Islamabad, making it attractive for tourists and locals alike.
Pakistan National Council of Arts, Parliament House, Rawal Lake, Various cultural festivals, Local eateries
F-6
A prestigious neighborhood that offers a mix of high-end rental options and easy access to various government buildings, attracting diplomats and expatriates.
Margalla Hills, Diplomatic Enclave, Shah Faisal Mosque, Local parks and green spaces, Shopping areas nearby
Blue Area
The commercial hub of Islamabad, filled with offices, shops, and hotels. It attracts business travelers and tourists, making it a prime spot for Airbnb hosts.
Centaurus Mall, Business centers, Local eateries and cafes, Nearby parks, Islamabad Chamber of Commerce
G-11
A developing area that offers good rental yields and is close to many educational institutions, attracting students and families.
Shifa International Hospital, Islamabad College for Boys, Yousaf Shah Road Markets, Parks and playgrounds, Various food outlets
Bahria Town
A well-planned community known for its modern amenities and attractions, appealing to both residents and tourists looking for a luxurious stay.
Bahria Icon Tower, Theme Park, Bahria Grand Mosque, Local shopping and dining options, Golf Course
G-5
Located near the city center, G-5 offers convenient access to many of Islamabad's key attractions, making it ideal for short-term rentals.
Constitution Avenue, Various government buildings, Parks, Cafes and restaurants, Easy access to public transport
G-10
A quiet residential neighborhood that offers comfort and accessibility, popular with expatriates and local families looking for spacious accommodations.
Parks and recreation areas, Educational institutions, Local shopping centers, Restaurants, Community gatherings

Understanding Airbnb License Requirements & STR Laws in Islamabad (2025)

While Islamabad, Islamabad Capital Territory, Pakistan 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 Islamabad to ensure full compliance before hosting.

(Source: AirROI data, 2025, finding no licensed listings among those analyzed)

Top Performing Airbnb Properties in Islamabad (2025)

Benchmark your potential! Explore examples of top-performing Airbnb properties in Islamabadbased on Trailing Twelve Month (TTM) revenue. Analyze their characteristics, revenue, occupancy rate, and ADR to understand what drives success in this market.

Luxury 6 Bedrooms Villa ISB D12

Luxury 6 Bedrooms Villa ISB D12

Entire Place • 6 bedrooms

$33,731
Revenue
36.7%
Occupancy
$428.03
Daily Rate
Fabulous house with Roof Garden

Fabulous house with Roof Garden

Entire Place • 3 bedrooms

$29,143
Revenue
29.9%
Occupancy
$169.52
Daily Rate
VILLA 4BHK| Lawn| Park View| Sunroom| ISB Central

VILLA 4BHK| Lawn| Park View| Sunroom| ISB Central

Entire Place • 4 bedrooms

$27,072
Revenue
64.4%
Occupancy
$114.72
Daily Rate
F-7th Heaven—Experience Islamabad's Hospitality

F-7th Heaven—Experience Islamabad's Hospitality

Entire Place • 3 bedrooms

$24,049
Revenue
54.5%
Occupancy
$281.24
Daily Rate
Centaurus Three Beds Mountain View Apartment

Centaurus Three Beds Mountain View Apartment

Entire Place • 3 bedrooms

$22,313
Revenue
42.1%
Occupancy
$199.50
Daily Rate
Flamingo Grand Apartments

Flamingo Grand Apartments

Entire Place • 3 bedrooms

$21,358
Revenue
62.9%
Occupancy
$81.11
Daily Rate

Note: Performance varies based on location, size, amenities, seasonality, and management quality. Data reflects the past 12 months.

Top Performing Airbnb Hosts in Islamabad (2025)

Learn from the best! This table showcases top-performing Airbnb hosts in Islamabad based on the number of properties managed and estimated total revenue over the past year. Analyze their scale and performance metrics.

Host NamePropertiesGrossing RevenueStay ReviewsAvg Rating
EasyStayPK12$115,1956714.87/5.0
Ammie7$77,7471274.83/5.0
Northern Hospitality4$64,411283.55/5.0
Assad5$60,2564844.91/5.0
Ibrahim3$49,2611534.88/5.0
Kashif Siddiq6$45,4052853.32/5.0
Ibrar9$44,6541363.72/5.0
Arif3$39,479944.96/5.0
Syed5$38,466563.90/5.0
Luxury Apartment1$33,73135.00/5.0

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 Islamabad.

Dive Deeper: Advanced Islamabad STR Market Data (2025)

Ready to unlock more insights? AirROI provides access to advanced metrics and comprehensive Airbnb data for Islamabad. Explore detailed analytics beyond this report to refine your investment strategy, optimize pricing, and maximize your vacation rental profits.

Explore Advanced Metrics

Islamabad Short-Term Rental Market Composition (2025): Property & Room Types

Room Type Distribution

Property Type Distribution

Market Composition Insights for Islamabad

  • The Islamabad Airbnb market composition is heavily skewed towards Entire Home/Apt listings, which make up 81.2% of the 437 active rentals. This indicates strong guest preference for privacy and space.
  • Looking at the property type distribution in Islamabad, Apartment/Condo properties are the most common (62.9%), reflecting the local real estate landscape.
  • Houses represent a significant 32% portion, catering likely to families or larger groups.
  • Smaller segments like hotel/boutique, others, unique stays (combined 5.0%) offer potential for unique stay experiences.

Islamabad Airbnb Room Capacity Analysis (2025): Bedroom Distribution

Distribution of Listings by Number of Bedrooms

Room Capacity Insights for Islamabad

  • The dominant room capacity in Islamabad is 1 bedroom listings, making up 44.2% of the market. This suggests a strong demand for properties suitable for couples or solo travelers.
  • Together, 1 bedroom and 2 bedrooms properties represent 74.2% of the active Airbnb listings in Islamabad, indicating a high concentration in these sizes.

Islamabad Vacation Rental Guest Capacity Trends (2025)

Distribution of Listings by Guest Capacity

Guest Capacity Insights for Islamabad

  • The most common guest capacity trend in Islamabad vacation rentals is listings accommodating 3 guests (19.7%). This suggests the primary traveler segment is likely small families or groups.
  • Properties designed for 3 guests and 4 guests dominate the Islamabad STR market, accounting for 37.8% of listings.
  • 24.7% of properties accommodate 6+ guests, serving the market segment for larger families or group travel in Islamabad.
  • On average, properties in Islamabad are equipped to host 4.0 guests.

Islamabad Airbnb Booking Patterns (2025): Available vs. Booked Days

Available Days Distribution

Booked Days Distribution

Booking Pattern Insights for Islamabad

  • The most common availability pattern in Islamabad falls within the 271-366 days range, representing 68.2% of listings. This suggests many properties have significant open periods on their calendars.
  • Approximately 93.1% 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 Islamabad (33.2%), reflecting common guest stay durations or potential owner blocking patterns.
  • A notable 7.3% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.

Islamabad Airbnb Minimum Stay Requirements Analysis

Distribution of Listings by Minimum Night Requirement

1 Night (95.2%)

1 Night

379 listings

95.2% of total

2 Nights (2.5%)

2 Nights

10 listings

2.5% of total

3 Nights (1%)

3 Nights

4 listings

1% of total

4-6 Nights (0.3%)

4-6 Nights

1 listings

0.3% of total

7-29 Nights (0.8%)

7-29 Nights

3 listings

0.8% of total

30+ Nights (0.3%)

30+ Nights

1 listings

0.3% of total

Key Insights

  • The most prevalent minimum stay requirement in Islamabad is 1 Night, adopted by 95.2% of listings. This highlights the market's preference for shorter, flexible bookings.
  • A strong majority (97.7%) of the Islamabad Airbnb data shows acceptance of very short stays (1-2 nights), indicating a dynamic, high-turnover market.
  • Dedicated monthly rentals (30+ nights) represent a small niche (0.3%), possibly an untapped area for hosts.

Recommendations

  • Align with the market by considering a 1 Night minimum stay, as 95.2% of Islamabad hosts use this setting.
  • Adjust minimum nights based on seasonality – potentially shorter during low season and longer during peak demand periods in Islamabad.

Islamabad Airbnb Cancellation Policy Trends Analysis (2025)

Flexible (65.5%)

Flexible

209 listings

65.5% of total

Moderate (20.1%)

Moderate

64 listings

20.1% of total

Firm

12 listings

3.8% of total

Strict (10.7%)

Strict

34 listings

10.7% of total

Cancellation Policy Insights for Islamabad

  • The prevailing Airbnb cancellation policy trend in Islamabad is Flexible, used by 65.5% of listings.
  • The market strongly favors guest-friendly terms, with 85.6% of listings offering Flexible or Moderate policies. This suggests guests in Islamabad may expect booking flexibility.

Recommendations for Hosts

  • Consider adopting a Flexible policy to align with the 65.5% market standard in Islamabad.
  • Given the high prevalence of Flexible policies (65.5%), offering this can enhance booking appeal, especially during shoulder seasons.
  • Using a Strict policy might deter some guests, as only 10.7% 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 Islamabad.

Islamabad STR Booking Lead Time Analysis (2025)

Average Booking Lead Time by Month

Booking Lead Time Insights for Islamabad

  • The overall average booking lead time for vacation rentals in Islamabad is 17 days.
  • Guests book furthest in advance for stays during October (average 34 days), likely coinciding with peak travel demand or local events.
  • The shortest booking windows occur for stays in March (average 7 days), indicating more last-minute travel plans during this time.
  • Seasonally, Fall (24 days avg.) sees the longest lead times, while Spring (14 days avg.) has the shortest, reflecting typical travel planning cycles.

Recommendations for Hosts

  • Use the overall average lead time (17 days) as a baseline for your pricing and availability strategy in Islamabad.
  • For October stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 34 days out to capitalize on advance planning.
  • During March, focus on last-minute booking availability and promotions, as guests book with very short notice (7 days avg.).
  • Target marketing efforts for the Fall season well in advance (at least 24 days) to capture early planners.
  • Monitor your own booking lead times against these Islamabad averages to identify opportunities for dynamic pricing adjustments.

Popular & Essential Airbnb Amenities in Islamabad (2025)

Amenity Prevalence

Amenity Insights for Islamabad

  • Essential amenities in Islamabad that guests expect include: Wifi, Air conditioning, Free parking on premises. Lacking these (any) could significantly impact bookings.
  • Popular amenities like TV, Kitchen, Heating are common but not universal. Offering these can provide a competitive edge.

Recommendations for Hosts

  • Ensure your listing includes all essential amenities for Islamabad: Wifi, Air conditioning, Free parking on premises.
  • Prioritize adding missing essentials: Wifi, Air conditioning, Free parking on premises.
  • Consider adding popular differentiators like TV or Kitchen 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 Islamabad to stay competitive.

Islamabad Airbnb Guest Demographics & Profile Analysis (2025)

Guest Origin: Domestic vs. International
Top 5 Cities of Origin
Top 5 Countries of Origin
Top 5 Languages Spoken
Guest Age Distribution (Birth Decade)

Guest Profile Summary for Islamabad

  • The typical guest profile for Airbnb in Islamabad consists of a mix of domestic (49%) and international guests, with top international origins including United Kingdom, typically belonging to the Post-2000s (Gen Z/Alpha) group (50%), primarily speaking English or Urdu.
  • Domestic travelers account for 48.6% of guests.
  • Key international markets include Pakistan (48.6%) and United Kingdom (13.6%).
  • Top languages spoken are English (42.8%) followed by Urdu (26.8%).
  • A significant demographic segment is the Post-2000s (Gen Z/Alpha) group, representing 50% of guests.

Recommendations for Hosts

  • Balance marketing efforts between domestic and international channels based on the guest mix.
  • 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 Islamabad 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.

MarketActive PropertiesMonthly RevenueDaily RateAvg. Occupancy
Tangmarg17$2,173$504.2024%
Barrian12$912$166.7423%
Tailbal(Habak Shanpora)19$663$71.1826%
Murree Tehsil14$657$98.0227%
Srinagar287$508$91.8128%
Bourbon26$420$88.9028%
Zone III19$409$68.1431%
Blue Area24$386$47.2332%
Zone IV54$294$49.2427%
Kalabagh18$282$105.1427%

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