The short-term rental market is evolving rapidly, and investors who stay ahead of the trends can capitalize on high-growth destinations before they become oversaturated. While major cities remain popular, emerging markets offer greater potential for high returns, lower competition, and unique guest experiences. Here are five emerging short-term rental markets you should be watching, along with practical investment insights for each location.
1. Medellín, Colombia
Once overlooked due to its turbulent past, Medellín has transformed into a top destination for digital nomads and tourists alike. Its pleasant climate, affordability, and growing expat community make it an ideal market for short-term rentals.
Why It’s Growing:
- Increasing demand from digital nomads seeking affordable, long-term stays.
- Significant investment in infrastructure, including improved public transport and coworking spaces.
- Favorable exchange rates make it an attractive option for international travelers.
Investor Tip: Properties in trendy neighborhoods like El Poblado and Laureles attract high occupancy rates. Consider investing in modern apartments with strong Wi-Fi and dedicated workspaces to cater to remote workers.
2. Tbilisi, Georgia
Tbilisi is gaining popularity among remote workers and budget-conscious travelers due to its low cost of living and visa-friendly policies. The city’s rich history, vibrant food scene, and scenic landscapes add to its appeal.
Why It’s Growing:
- The Digital Nomad Visa allows extended stays, attracting long-term guests.
- A mix of historic and modern architecture creates diverse rental opportunities.
- Increasing international flights and tourism campaigns are boosting visitor numbers.
Investor Tip: Restoring old town properties into boutique rentals can offer a high return, as travelers seek authentic local experiences. Consider adding amenities like self-check-in and guided local experiences.
3. Ho Chi Minh City, Vietnam
Vietnam’s economic growth and increasing tourism make Ho Chi Minh City a hotspot for short-term rentals. With its bustling energy, thriving café culture, and affordability, travelers are flocking to this Southeast Asian destination.
Why It’s Growing:
- Rising middle-class population and an increase in domestic travel.
- Strong demand for urban rentals, particularly in central districts.
- Continued development of infrastructure, including metro systems and international business hubs.
Investor Tip: Focus on centrally located apartments in District 1 or Thao Dien, where expats and business travelers prefer to stay. Offering fully serviced units with high-speed internet and kitchen facilities can increase occupancy rates.
4. Porto, Portugal
Lisbon has long been a favorite among tourists, but Porto is now gaining attention as an alternative destination. This coastal city offers stunning views, historic charm, and a growing demand for short-term stays.
Why It’s Growing:
- Portugal’s Golden Visa program continues to attract international investors.
- A surge in cultural tourism, with wine tastings, river cruises, and historic sites.
- More affordable property prices compared to Lisbon, making it an attractive investment.
Investor Tip: Waterfront apartments and restored heritage homes near Ribeira or Foz do Douro perform exceptionally well. Consider integrating eco-friendly designs to attract sustainability-conscious travelers.
5. Zanzibar, Tanzania
Zanzibar is quickly becoming a top destination for travelers looking for exotic, beachfront stays at a fraction of the cost of other island destinations. The growing tourism industry and limited high-quality accommodations make it an exciting market for investors.
Why It’s Growing:
- Increased flight routes and tourism marketing campaigns.
- High demand for boutique-style villas and eco-friendly stays.
- Favorable government policies promoting foreign investment in hospitality.
Investor Tip: Beachfront bungalows and eco-lodges in areas like Nungwi and Paje are highly sought after. Investing in solar-powered, self-sufficient properties can differentiate your rental from competitors while attracting eco-conscious tourists.
Where Should You Invest?
The short-term rental industry is shifting, and these emerging markets offer excellent opportunities for those willing to invest early. Whether you’re looking for an urban hotspot or a beachfront retreat, keeping an eye on these destinations can help you stay ahead of the competition and maximize your rental income. Choosing the right property type and catering to the needs of modern travelers will be key to securing long-term success in these high-growth markets.
