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

Source: AirROI
Last updated: 2025-12-01

Is Airbnb profitable in Luz in 2025? Explore comprehensive Airbnb analytics for Luz, Faro, Portugal to uncover income potential. This 2025 STR market report for Luz, based on AirROI data from December 2024 to November 2025, reveals key trends in the niche market of 32 active listings.

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

Avg. Daily Rate (ADR)(?)
$304
The average rental revenue earned for an occupied room per day in Luz.
Occupancy Rate(?)
46.9%
Moderate demand with booking opportunities.
Median Annual Revenue(?)
$27,119
Typical annual income for an Airbnb listing in Luz. Factors like property type, size, and location influence actual earnings.
Revenue Growth YoY(?)
-1.3%
Slight decrease (-1.3%) vs. last year.
Peak Revenue Month(?)
July
The month with the highest average earnings, indicating peak season in Luz.
Lowest Revenue Month(?)
December
The month with the lowest average earnings, indicating the low season in Luz.
STR Regulation Level(?)
High
Strict regulations. Compliance is crucial (licensing, taxes, stay limits may apply).
Active Airbnb Listings(?)
32
Total number of active short-term rentals listed.

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

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

  • Best-in-class properties (Top 10%) achieve $6,330+ monthly, often utilizing dynamic pricing and superior guest experiences.
  • Strong performing properties (Top 25%) earn $3,877 or more, indicating effective management and desirable locations/amenities.
  • Typical properties (Median) generate around $2,335 per month, representing the average market performance.
  • Entry-level properties (Bottom 25%) see earnings around $1,483, often with potential for optimization.

Average Monthly Airbnb Earnings Trend in Luz

Luz Airbnb Occupancy Rate Trends (2025)

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

  • Best-in-class properties (Top 10%) achieve 64%+ occupancy, indicating high desirability and potentially optimized availability.
  • Strong performing properties (Top 25%) maintain 60% or higher occupancy, suggesting good market fit and guest satisfaction.
  • Typical properties (Median) have an occupancy rate around 41%.
  • Entry-level properties (Bottom 25%) average 29% occupancy, potentially facing higher vacancy.

Average Monthly Occupancy Rate Trend in Luz

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

Effective short term rental pricing strategy in Luz involves understanding monthly ADR fluctuations. The Average Daily Rate (ADR) for Airbnb in Luz typically peaks in July and dips lowest during November. 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 $675+ per night, often due to premium features or locations.
  • Strong performing properties (Top 25%) achieve nightly rates of $268 or more.
  • Typical properties (Median) charge around $176 per night.
  • Entry-level properties (Bottom 25%) earn around $123 per night.

Average Daily Rate (ADR) Trend by Month in Luz

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Airbnb Seasonality Analysis & Trends in Luz (2025)

Peak Season (July, August, June)
  • Revenue averages $6,485 per month
  • Occupancy rates average 67.9%
  • Daily rates average $331
Shoulder Season
  • Revenue averages $2,851 per month
  • Occupancy maintains around 45.4%
  • Daily rates hold near $292
Low Season (May, November, December)
  • Revenue drops to average $1,402 per month
  • Occupancy decreases to average 17.4%
  • Daily rates adjust to average $281

Seasonality Insights for Luz

  • The Airbnb seasonality in Luz 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 Luz's highest earning potential, with monthly revenues capable of climbing to $7,581, occupancy reaching a high of 74.1%, and ADRs peaking at $352.
  • 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 $1,255, occupancy could drop to 14.0%, and ADRs may adjust down to $249.
  • 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 Luz.

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

Best Areas for Airbnb Investment in Luz (2025)

Exploring the top neighborhoods for short-term rentals in Luz? 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
Praia da Rocha
Famous for its stunning beaches and vibrant nightlife, Praia da Rocha attracts tourists looking for sun, sand, and entertainment. Perfect for summer vacation rentals.
Praia da Rocha Beach, Alvor Boardwalk, Fort of Santa Catarina, Casino de Portimão, Alvor Beach
Lagos Old Town
A charming historical area with cobblestone streets and beautiful architecture. It's popular with visitors who want to explore local culture and heritage.
Ponta da Piedade, Lagos Marina, Lagos Cultural Center, Meia Praia Beach, Praia Dona Ana
Tavira
Known for its picturesque architecture and serene atmosphere, Tavira offers a more laid-back experience, catering to families and couples seeking relaxation.
Tavira Island, Castle of Tavira, Roman Bridge, Praia do Barril, Tavira Golf
Albufeira
A bustling tourist hotspot with a vibrant nightlife scene and beautiful beaches. Popular for both families and young adults.
Albufeira Marina, Pescadores Beach, Zoomarine, Old Town Albufeira, Praia da Falésia
Vilamoura
A luxurious resort town known for its marina, golf courses, and upscale amenities. Attracts wealthier tourists and golf enthusiasts.
Vilamoura Marina, Falesia Beach, Golf Courses, Casino Vilamoura, Aquashow Park
Carvoeiro
A lovely fishing village that has become a favorite for tourists looking for stunning scenery and a relaxing vibe. Ideal for family rentals.
Carvoeiro Beach, Algar Seco, Praia do Carvalho, Vale de Centeanes Beach, Rocha Brava
Sagres
A laid-back surfer town that is popular with outdoor enthusiasts looking for adventure and stunning coastal views, attracting a younger crowd.
Sagres Fortress, Cape St. Vincent, Surf Beaches, Ponta de Sagres, Praia do Amado
Ferreiras
A tranquil inland area that offers a glimpse of traditional Portuguese life, making it a great choice for visitors who seek peace and quiet while still being close to attractions.
Local restaurants, Wine tasting tours, Nearby cities, Cultural experiences, Scenic countryside

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

Yes, Luz, 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 Luz to ensure full compliance before hosting.

(Source: AirROI data, 2025, based on 88% licensed listings)

Top Performing Airbnb Properties in Luz (2025)

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

Luxe Sea Views Smart Villa Bliss

Luxe Sea Views Smart Villa Bliss

Entire Place • 4 bedrooms

$133,053
Revenue
61.2%
Occupancy
$1300.24
Daily Rate
Villa Oliade - Escape to Luxury at Our New Villa

Villa Oliade - Escape to Luxury at Our New Villa

Entire Place • 5 bedrooms

$131,486
Revenue
59.8%
Occupancy
$961.45
Daily Rate
Monte do Caneiro

Monte do Caneiro

Entire Place • 7 bedrooms

$68,755
Revenue
29.1%
Occupancy
$710.63
Daily Rate
Quinta Felicidade, 4 bedroom holiday villa with pr

Quinta Felicidade, 4 bedroom holiday villa with pr

Entire Place • 4 bedrooms

$50,597
Revenue
42.0%
Occupancy
$467.80
Daily Rate
Casa Mar Azul - Lux Tavira

Casa Mar Azul - Lux Tavira

Entire Place • 3 bedrooms

$41,718
Revenue
33.9%
Occupancy
$1705.60
Daily Rate
Bliss Luz Sea View 50m to Beach

Bliss Luz Sea View 50m to Beach

Entire Place • 2 bedrooms

$36,007
Revenue
65.8%
Occupancy
$246.71
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 Luz (2025)

Learn from the best! This table showcases top-performing Airbnb hosts in Luz 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
Raphaëlle2$169,060114.78/5.0
Rental Valley1$131,486134.92/5.0
Rosa1$68,755274.96/5.0
Ingrid1$50,5972Not Rated
Holidu1$41,7181Not Rated
Nelson3$37,205213.75/5.0
Best Guest3$35,064224.28/5.0
HostiHomes1$33,5942Not Rated
Silhueta Citadina1$33,27954.60/5.0
André Simão2$31,306245.00/5.0

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 Luz.

Dive Deeper: Advanced Luz STR Market Data (2025)

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

Explore Advanced Metrics

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

Room Type Distribution

Property Type Distribution

Market Composition Insights for Luz

  • The Luz Airbnb market composition is heavily skewed towards Entire Home/Apt listings, which make up 93.8% of the 32 active rentals. This indicates strong guest preference for privacy and space.
  • Looking at the property type distribution in Luz, Apartment/Condo properties are the most common (46.9%), reflecting the local real estate landscape.
  • Houses represent a significant 46.9% portion, catering likely to families or larger groups.

Luz Airbnb Room Capacity Analysis (2025): Bedroom Distribution

Distribution of Listings by Number of Bedrooms

Room Capacity Insights for Luz

  • The dominant room capacity in Luz is 2 bedrooms listings, making up 31.3% of the market. This suggests a strong demand for properties suitable for couples or solo travelers.
  • Together, 2 bedrooms and 3 bedrooms properties represent 53.2% of the active Airbnb listings in Luz, indicating a high concentration in these sizes.
  • A significant 43.8% of listings offer 3+ bedrooms, catering to larger groups and families seeking more space in Luz.

Luz Vacation Rental Guest Capacity Trends (2025)

Distribution of Listings by Guest Capacity

Guest Capacity Insights for Luz

  • The most common guest capacity trend in Luz vacation rentals is listings accommodating 8+ guests (25%). This suggests the primary traveler segment is likely larger groups.
  • Properties designed for 8+ guests and 4 guests dominate the Luz STR market, accounting for 46.9% of listings.
  • 46.9% of properties accommodate 6+ guests, serving the market segment for larger families or group travel in Luz.
  • On average, properties in Luz are equipped to host 4.8 guests.

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

Available Days Distribution

Booked Days Distribution

Booking Pattern Insights for Luz

  • The most common availability pattern in Luz falls within the 271-366 days range, representing 65.6% of listings. This suggests many properties have significant open periods on their calendars.
  • Approximately 96.9% of listings show high availability (181+ days open annually), indicating potential for increased bookings or specific owner usage patterns.
  • For booked days, the 31-90 days range is most frequent in Luz (46.9%), reflecting common guest stay durations or potential owner blocking patterns.
  • A notable 3.1% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.

Luz Airbnb Minimum Stay Requirements Analysis

Distribution of Listings by Minimum Night Requirement

1 Night (6.3%)

1 Night

2 listings

6.3% of total

2 Nights (6.3%)

2 Nights

2 listings

6.3% of total

3 Nights (6.3%)

3 Nights

2 listings

6.3% of total

4-6 Nights (21.9%)

4-6 Nights

7 listings

21.9% of total

7-29 Nights (3.1%)

7-29 Nights

1 listings

3.1% of total

30+ Nights (56.3%)

30+ Nights

18 listings

56.3% of total

Key Insights

  • The most prevalent minimum stay requirement in Luz is 30+ Nights, adopted by 56.3% of listings. This highlights the market's preference for longer commitments.
  • Very short stays (1-2 nights) are less common (12.6%), suggesting hosts prefer slightly longer bookings to optimize turnover.
  • A significant segment (56.3%) caters to monthly stays (30+ nights) in Luz, pointing to opportunities in the extended-stay market.

Recommendations

  • Align with the market by considering a 30+ Nights minimum stay, as 56.3% of Luz hosts use this setting.
  • If feasible, allowing 1-night stays, especially midweek or during low season, could capture last-minute bookings, as only 6.3% currently do.
  • Explore offering discounts for stays of 30+ nights to attract the 56.3% of the market seeking extended stays.
  • Adjust minimum nights based on seasonality – potentially shorter during low season and longer during peak demand periods in Luz.

Luz Airbnb Cancellation Policy Trends Analysis (2025)

Super Strict 30 Days (12.5%)

Super Strict 30 Days

4 listings

12.5% of total

Limited

1 listings

3.1% of total

Flexible (12.5%)

Flexible

4 listings

12.5% of total

Moderate (9.4%)

Moderate

3 listings

9.4% of total

Firm (53.1%)

Firm

17 listings

53.1% of total

Strict (9.4%)

Strict

3 listings

9.4% of total

Cancellation Policy Insights for Luz

  • The prevailing Airbnb cancellation policy trend in Luz is Firm, used by 53.1% of listings.
  • A majority (62.5%) of hosts in Luz utilize Firm or Strict policies, indicating a market where hosts prioritize booking security.
  • Strict cancellation policies are quite rare (9.4%), potentially making listings with this policy less competitive unless justified by high demand or property type.

Recommendations for Hosts

  • Consider adopting a Firm policy to align with the 53.1% market standard in Luz.
  • Using a Strict policy might deter some guests, as only 9.4% 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 Luz.

Luz STR Booking Lead Time Analysis (2025)

Average Booking Lead Time by Month

Booking Lead Time Insights for Luz

  • The overall average booking lead time for vacation rentals in Luz is 34 days.
  • Guests book furthest in advance for stays during August (average 51 days), likely coinciding with peak travel demand or local events.
  • The shortest booking windows occur for stays in March (average 1 days), indicating more last-minute travel plans during this time.
  • Seasonally, Fall (40 days avg.) sees the longest lead times, while Winter (6 days avg.) has the shortest, reflecting typical travel planning cycles.

Recommendations for Hosts

  • Use the overall average lead time (34 days) as a baseline for your pricing and availability strategy in Luz.
  • For August stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 51 days out to capitalize on advance planning.
  • During March, focus on last-minute booking availability and promotions, as guests book with very short notice (1 days avg.).
  • Target marketing efforts for the Fall season well in advance (at least 40 days) to capture early planners.
  • Monitor your own booking lead times against these Luz averages to identify opportunities for dynamic pricing adjustments.

Popular & Essential Airbnb Amenities in Luz (2025)

Amenity Prevalence

Amenity Insights for Luz

  • Popular amenities like Wifi, Kitchen, TV are common but not universal. Offering these can provide a competitive edge.
  • Warning: Wifi is not universally provided but is considered essential globally. Ensure reliable Wifi is offered.

Recommendations for Hosts

  • Consider adding popular differentiators like Wifi 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 Luz to stay competitive.

Luz 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 Luz

  • The typical guest profile for Airbnb in Luz consists of predominantly international visitors (92%), with top international origins including United Kingdom, typically belonging to the Post-2000s (Gen Z/Alpha) group (50%), primarily speaking English or Spanish.
  • Domestic travelers account for 8.0% of guests.
  • Key international markets include Germany (14.3%) and United Kingdom (12.5%).
  • Top languages spoken are English (40.2%) followed by Spanish (18.8%).
  • 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 United Kingdom.
  • 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 Luz 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
Guia25$4,318$661.2348%
Comporta109$3,929$433.3241%
Olhos de Água20$3,545$399.8251%
Alcácer do Sal19$3,419$391.1133%
Ferreira do Alentejo13$3,181$285.8736%
Albufeira4,894$2,991$291.6746%
Lagoa e Carvoeiro1,051$2,762$258.6148%
Ferragudo213$2,564$259.6046%
Grândola343$2,547$412.6931%
Loulé2,697$2,480$281.7341%

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