Loulé Airbnb Market Analysis 2025: Short Term Rental Data & Vacation Rental Statistics in Faro, Portugal

Source: AirROI
Last updated: 2025-03-31

Is Airbnb profitable in Loulé in 2025? Explore comprehensive Airbnb analytics for Loulé, Faro, Portugal to uncover income potential. This 2025 STR market report for Loulé, based on AirROI data from April 2024 to March 2025, reveals key trends in the bustling market of 2,688 active listings.

Whether you're considering an Airbnb investment in Loulé, optimizing your existing vacation rental, or exploring rental arbitrage opportunities, understanding the Loulé Airbnb data is crucial. Navigating the high regulation landscape is key to maximizing your short term rental income potential. Let's dive into the specifics.

Key Loulé Airbnb Performance Metrics Overview

Avg. Daily Rate (ADR)(?)
$261
The average rental revenue earned for an occupied room per day in Loulé.
Occupancy Rate(?)
44.3%
Moderate demand with booking opportunities.
Median Annual Revenue(?)
$27,821
Typical annual income for an Airbnb listing in Loulé. Factors like property type, size, and location influence actual earnings.
Revenue Growth YoY(?)
6.6%
Positive growth (6.6%) vs. last year.
Peak Revenue Month(?)
August
The month with the highest average earnings, indicating peak season in Loulé.
Lowest Revenue Month(?)
February
The month with the lowest average earnings, indicating the low season in Loulé.
STR Regulation Level(?)
High
Strict regulations. Compliance is crucial (licensing, taxes, stay limits may apply).
Active Airbnb Listings(?)
2,688
Total number of active short-term rentals listed.

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

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

  • Best-in-class properties (Top 10%) achieve $6,899+ monthly, often utilizing dynamic pricing and superior guest experiences.
  • Strong performing properties (Top 25%) earn $3,878 or more, indicating effective management and desirable locations/amenities.
  • Typical properties (Median) generate around $2,154 per month, representing the average market performance.
  • Entry-level properties (Bottom 25%) see earnings around $1,082, often with potential for optimization.

Average Monthly Airbnb Earnings Trend in Loulé

Loulé Airbnb Occupancy Rate Trends (2025)

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

  • Best-in-class properties (Top 10%) achieve 81%+ occupancy, indicating high desirability and potentially optimized availability.
  • Strong performing properties (Top 25%) maintain 61% or higher occupancy, suggesting good market fit and guest satisfaction.
  • Typical properties (Median) have an occupancy rate around 40%.
  • Entry-level properties (Bottom 25%) average 19% occupancy, potentially facing higher vacancy.

Average Monthly Occupancy Rate Trend in Loulé

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

Effective short term rental pricing strategy in Loulé involves understanding monthly ADR fluctuations. The Average Daily Rate (ADR) for Airbnb in Loulé typically peaks in August and dips lowest during February. 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 $525+ per night, often due to premium features or locations.
  • Strong performing properties (Top 25%) achieve nightly rates of $282 or more.
  • Typical properties (Median) charge around $157 per night.
  • Entry-level properties (Bottom 25%) earn around $103 per night.

Average Daily Rate (ADR) Trend by Month in Loulé

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Airbnb Seasonality Analysis & Trends in Loulé (2025)

Peak Season (August, July, June)
  • Revenue averages $5,898 per month
  • Occupancy rates average 58.2%
  • Daily rates average $314
Shoulder Season
  • Revenue averages $3,019 per month
  • Occupancy maintains around 40.2%
  • Daily rates hold near $260
Low Season (January, February, March)
  • Revenue drops to average $1,549 per month
  • Occupancy decreases to average 29.3%
  • Daily rates adjust to average $227

Seasonality Insights for Loulé

  • The Airbnb seasonality in Loulé 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 Loulé's highest earning potential, with monthly revenues capable of climbing to $6,977, occupancy reaching a high of 69.4%, and ADRs peaking at $325.
  • 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 $1,439, occupancy could drop to 26.6%, and ADRs may adjust down to $226.
  • 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 Loulé.

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

Best Areas for Airbnb Investment in Loulé (2025)

Exploring the top neighborhoods for short-term rentals in Loulé? 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
Vilamoura
Popular resort town known for its marina, golf courses, and nightlife. Ideal for attracting tourists interested in beach activities and luxury amenities.
Vilamoura Marina, Falesia Beach, Cerro da Vila, Golf courses, Nightclubs and bars, Quarteira market
Quarteira
Traditional fishing town with a beautiful beach and a promenade. Great for families and tourists looking for affordable accommodations by the sea.
Quarteira Beach, Praça do Mar, Fish market, Aquashow Park, Loule Market
Loulé
Charming historic town famous for its market, festivals, and beautiful surroundings. Ideal for those seeking a cultural experience away from tourist hotspots.
Loulé Market, Cerro da Vila, Castelo de Loulé, Santuário da Nossa Senhora da Conceição, Loulé Carnival
Almancil
Known for its upscale communities and proximity to luxury resorts such as Vale do Lobo. Attracts tourists looking for upscale accommodations and golf.
Vale do Lobo beach, Praia do Ancão, Royal Golf Course, Vila Sol Golf Course, Local Restaurants
Tavira
Picturesque town with historical architecture and a relaxed atmosphere. Popular for those wanting to explore the Algarve's eastern region.
Tavira Island, Roman Bridge, Tavira Castle, Praia do Barril, Tavira's historic center
Faro
The capital of the Algarve, offering a mix of history, culture, and access to beautiful beaches. Great for tourists seeking both relaxation and exploration.
Old Town Faro, Ria Formosa Natural Park, Faro Cathedral, Praia de Faro, Teatro Municipal de Faro
Cacela Velha
Stunning coastal village known for its cliffs and stunning beaches. Ideal for tourists looking for a quiet escape in nature.
Cacela Velha Beach, Cacela Velha Fortress, Praia da Fábrica, Local seafood restaurants, Natural park
Portimão
Vibrant city known for its beach resorts and nightlife. Popular with younger travelers and those looking for an active beach vacation.
Praia da Rocha, Portimão Marina, Museu de Portimão, Alvor Beach, Nightclubs and bars

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

Yes, Loulé, Faro, Portugal enforces high STR regulations. Obtaining a license and ensuring compliance is almost certainly required according to current 2025 STR laws. Always verify the latest short term rental regulations and Airbnb license requirements directly with local government authorities for Loulé to ensure full compliance before hosting.

(Source: AirROI data, 2025, based on 75% licensed listings)

Top Performing Airbnb Properties in Loulé (2025)

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

Seventies by Check-in Portugal

Seventies by Check-in Portugal

Entire Place • 6 bedrooms

$533,808
Revenue
52.3%
Occupancy
$2725.69
Daily Rate
Azaleas by Check-in Portugal

Azaleas by Check-in Portugal

Entire Place • 5 bedrooms

$525,928
Revenue
55.6%
Occupancy
$2336.95
Daily Rate
Fonte Santa by Check-in Portugal

Fonte Santa by Check-in Portugal

Entire Place • 6 bedrooms

$523,175
Revenue
52.3%
Occupancy
$2603.25
Daily Rate
Mourisca by Check-in Portugal

Mourisca by Check-in Portugal

Entire Place • 4 bedrooms

$441,594
Revenue
49.1%
Occupancy
$1887.38
Daily Rate
Neridas Villa by Check-in Portugal

Neridas Villa by Check-in Portugal

Entire Place • 5 bedrooms

$424,976
Revenue
52.7%
Occupancy
$1762.62
Daily Rate
Espraguina by Check-in Portugal

Espraguina by Check-in Portugal

Entire Place • 7 bedrooms

$353,461
Revenue
37.6%
Occupancy
$1756.15
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 Loulé (2025)

Learn from the best! This table showcases top-performing Airbnb hosts in Loulé 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
Check-In13$4,448,4333444.31/5.0
Antonio37$2,545,0268674.60/5.0
Hd Properties109$1,983,22523554.05/5.0
Holidu22$1,937,4421022.92/5.0
Cláudia57$1,775,1165423.46/5.0
Bed And Sun54$1,383,25420434.56/5.0
Holidu32$1,304,9933084.07/5.0
Homing Algarve60$1,080,8605404.13/5.0
Rui22$945,7873194.51/5.0
Vap18$886,0521374.18/5.0

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 Loulé.

Dive Deeper: Advanced Loulé STR Market Data (2025)

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

Explore Advanced Metrics

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

Room Type Distribution

Property Type Distribution

Market Composition Insights for Loulé

  • The Loulé Airbnb market composition is heavily skewed towards Entire Home/Apt listings, which make up 96.8% of the 2,688 active rentals. This indicates strong guest preference for privacy and space.
  • Looking at the property type distribution in Loulé, Apartment/Condo properties are the most common (58.3%), reflecting the local real estate landscape.
  • Houses represent a significant 38.2% portion, catering likely to families or larger groups.
  • Smaller segments like hotel/boutique, outdoor/unique, others, unique stays (combined 3.4%) offer potential for unique stay experiences.

Loulé Airbnb Room Capacity Analysis (2025): Bedroom Distribution

Distribution of Listings by Number of Bedrooms

Room Capacity Insights for Loulé

  • The dominant room capacity in Loulé is 2 bedrooms listings, making up 36.4% of the market. This suggests a strong demand for properties suitable for couples or solo travelers.
  • Together, 2 bedrooms and 1 bedroom properties represent 63.0% of the active Airbnb listings in Loulé, indicating a high concentration in these sizes.
  • A significant 34.4% of listings offer 3+ bedrooms, catering to larger groups and families seeking more space in Loulé.

Loulé Vacation Rental Guest Capacity Trends (2025)

Distribution of Listings by Guest Capacity

Guest Capacity Insights for Loulé

  • The most common guest capacity trend in Loulé vacation rentals is listings accommodating 4 guests (34.2%). This suggests the primary traveler segment is likely small families or groups.
  • Properties designed for 4 guests and 6 guests dominate the Loulé STR market, accounting for 57.9% of listings.
  • 46.6% of properties accommodate 6+ guests, serving the market segment for larger families or group travel in Loulé.
  • On average, properties in Loulé are equipped to host 5.2 guests.

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

Available Days Distribution

Booked Days Distribution

Booking Pattern Insights for Loulé

  • The most common availability pattern in Loulé falls within the 271-366 days range, representing 47.9% of listings. This suggests many properties have significant open periods on their calendars.
  • Approximately 81.9% of listings show high availability (181+ days open annually), indicating potential for increased bookings or specific owner usage patterns.
  • For booked days, the 91-180 days range is most frequent in Loulé (34.8%), reflecting common guest stay durations or potential owner blocking patterns.
  • A notable 19.2% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.

Loulé Airbnb Minimum Stay Requirements Analysis

Distribution of Listings by Minimum Night Requirement

1 Night (7.6%)

1 Night

194 listings

7.6% of total

2 Nights (11.8%)

2 Nights

301 listings

11.8% of total

3 Nights (21.5%)

3 Nights

547 listings

21.5% of total

4-6 Nights (31.4%)

4-6 Nights

799 listings

31.4% of total

7-29 Nights (13.5%)

7-29 Nights

343 listings

13.5% of total

30+ Nights (14.1%)

30+ Nights

358 listings

14.1% of total

Key Insights

  • The most prevalent minimum stay requirement in Loulé is 4-6 Nights, adopted by 31.4% of listings. This highlights the market's preference for longer commitments.
  • Very short stays (1-2 nights) are less common (19.4%), suggesting hosts prefer slightly longer bookings to optimize turnover.
  • A significant segment (14.1%) caters to monthly stays (30+ nights) in Loulé, pointing to opportunities in the extended-stay market.

Recommendations

  • Align with the market by considering a 4-6 Nights minimum stay, as 31.4% of Loulé hosts use this setting.
  • If feasible, allowing 1-night stays, especially midweek or during low season, could capture last-minute bookings, as only 7.6% currently do.
  • Explore offering discounts for stays of 30+ nights to attract the 14.1% of the market seeking extended stays.
  • Adjust minimum nights based on seasonality – potentially shorter during low season and longer during peak demand periods in Loulé.

Loulé Airbnb Cancellation Policy Trends Analysis (2025)

Super Strict 60 Days

92 listings

4.1% of total

Refundable

6 listings

0.3% of total

Non-refundable

5 listings

0.2% of total

Super Strict 30 Days

84 listings

3.7% of total

Flexible (11.4%)

Flexible

258 listings

11.4% of total

Moderate (15.2%)

Moderate

342 listings

15.2% of total

Firm (23.6%)

Firm

532 listings

23.6% of total

Strict (41.5%)

Strict

937 listings

41.5% of total

Cancellation Policy Insights for Loulé

  • The prevailing Airbnb cancellation policy trend in Loulé is Strict, used by 41.5% of listings.
  • A majority (65.1%) of hosts in Loulé utilize Firm or Strict policies, indicating a market where hosts prioritize booking security.

Recommendations for Hosts

  • Consider adopting a Strict policy to align with the 41.5% market standard in Loulé.
  • With 41.5% using Strict terms, this is a viable option in Loulé, particularly for high-value properties or during peak demand periods.
  • Regularly review your cancellation policy against competitors and market demand shifts in Loulé.

Loulé STR Booking Lead Time Analysis (2025)

Average Booking Lead Time by Month

Booking Lead Time Insights for Loulé

  • The overall average booking lead time for vacation rentals in Loulé is 73 days.
  • Guests book furthest in advance for stays during July (average 110 days), likely coinciding with peak travel demand or local events.
  • The shortest booking windows occur for stays in February (average 57 days), indicating more last-minute travel plans during this time.
  • Seasonally, Summer (102 days avg.) sees the longest lead times, while Winter (58 days avg.) has the shortest, reflecting typical travel planning cycles.

Recommendations for Hosts

  • Use the overall average lead time (73 days) as a baseline for your pricing and availability strategy in Loulé.
  • For July stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 110 days out to capitalize on advance planning.
  • Target marketing efforts for the Summer season well in advance (at least 102 days) to capture early planners.
  • Monitor your own booking lead times against these Loulé averages to identify opportunities for dynamic pricing adjustments.

Popular & Essential Airbnb Amenities in Loulé (2025)

Amenity Prevalence

Amenity Insights for Loulé

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

Recommendations for Hosts

  • Ensure your listing includes all essential amenities for Loulé: Kitchen, TV, Wifi.
  • Prioritize adding missing essentials: Kitchen, TV, Wifi.
  • Consider adding popular differentiators like Washer or Essentials 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 Loulé to stay competitive.

Loulé 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 Loulé

  • The typical guest profile for Airbnb in Loulé consists of predominantly international visitors (90%), with top international origins including France, typically belonging to the Post-2000s (Gen Z/Alpha) group (50%), primarily speaking English or French.
  • Domestic travelers account for 9.9% of guests.
  • Key international markets include United Kingdom (36%) and France (10.8%).
  • Top languages spoken are English (44.3%) followed by French (13%).
  • A significant demographic segment is the Post-2000s (Gen Z/Alpha) group, representing 50% of guests.

Recommendations for Hosts

  • Focus marketing internationally, particularly towards travelers from France.
  • 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 Loulé 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
Comporta120$3,474$451.7941%
Albufeira4,918$2,667$276.1247%
Lisbon11,974$2,544$157.5857%
Grândola337$2,504$358.7636%
Lagoa e Carvoeiro1,067$2,424$242.8350%
Ferragudo200$2,379$256.3348%
Seixal193$2,312$202.1347%
São Brás de Alportel109$2,302$257.0446%
Cascais1,597$2,299$196.0049%
Ferreira do Alentejo15$2,227$226.5336%

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