If you’re in the short-term rental game, staying ahead means knowing where the next hotspots are before they explode.
Airbnb’s growth in 2025 will likely come from lesser-known destinations that combine affordability, growing tourism demand, and favorable rental markets. Here’s a guide to some emerging locations that should be on your radar if you’re serious about scaling your property portfolio.
Tulum, Mexico
Tulum’s rise is no secret, but its appeal isn’t fading anytime soon. Travelers are drawn to its boutique vibe, eco-tourism experiences, and Instagram-worthy beach scenes. While major developments in the region could saturate traditional accommodations, boutique-style vacation rentals still have untapped potential.
– Why Now?
International tourism is set to bounce back strongly in 2025, with Mexico benefiting from relaxed entry requirements and strong air connectivity. Tulum’s infrastructure is also improving, with the Tulum International Airport and Mayan Train scheduled for completion, increasing accessibility.
Focus on eco-conscious properties. Solar-powered villas or homes with sustainable materials align well with the region’s ethos. Appeal to digital nomads by offering high-speed internet and co-working setups.
Da Nang, Vietnam
Often overlooked in favor of Hanoi or Ho Chi Minh City, Da Nang is gaining popularity among international and domestic tourists. Its beaches, proximity to cultural landmarks, and affordability make it an attractive investment.
– Why Now?
Vietnam’s tourism authority is promoting destinations beyond its primary cities, driving growth in coastal areas like Da Nang. Additionally, a significant increase in direct flights from Europe and Australia is expected in 2025.
Smaller luxury apartments or homes near My Khe Beach offer high returns. Cater to travelers seeking a mix of relaxation and cultural experiences by highlighting nearby attractions like Hoi An and Marble Mountains.
Bologna, Italy
While Italy’s big cities remain staples for tourists, mid-sized destinations like Bologna are becoming the new favorite. Known for its rich culinary scene and vibrant student population, this city has all the makings of a rental hotspot.
– Why Now?
Bologna benefits from lower property prices compared to Rome or Florence. It’s also experiencing a boom in its short-term rental market, driven by foodie tourism and an increasing number of international students.
Look for properties near the historic center or close to major universities. Unique stays, like loft apartments in renovated historic buildings, tend to perform well in this market.
Kotor, Montenegro
Kotor combines affordability with a jaw-dropping setting along the Adriatic Sea. While still under the radar compared to Croatia, Montenegro is quickly becoming a sought-after destination for European and global travelers.
– Why Now?
Montenegro’s government actively supports foreign investors in real estate. The upcoming Schengen Zone integration will also make travel easier, likely boosting tourism in 2025.
Target waterfront homes or properties with panoramic views of Kotor Bay. Consider converting larger houses into multi-unit rentals to maximize income during the peak summer season.
San Miguel de Allende, México
This charming colonial town is loved for its art scene, architecture, and vibrant festivals. While it’s already popular with retirees, Airbnb’s data shows an uptick in younger visitors booking short-term stays.
– Why Now?
San Miguel de Allende remains affordable compared to other Mexican cities, and its reputation as a cultural hotspot continues to grow. Domestic and international tourism is expected to peak during festivals like Día de los Muertos.
Invest in smaller homes or boutique-style accommodations close to the historic center. Focus on aesthetic interiors with local artisan touches to attract art and culture lovers.
Gran Canaria, Spain
This Canary Island is moving beyond seasonal tourism and appealing to long-term renters, particularly remote workers. The blend of sunshine, affordability, and coworking hubs makes it ideal for year-round rental income.
– Why Now?
Gran Canaria has been aggressively marketing itself as a “workation” destination, and the results are paying off. Flights from the U.S. and other parts of Europe are increasing, opening the market to a wider audience.
Look for apartments or villas in the southern part of the island, like Maspalomas. Properties with outdoor spaces, good Wi-Fi, and office setups will stand out.
Medellín, Colombia
Medellín continues to be a magnet for digital nomads and eco-tourism enthusiasts. Known for its temperate climate and stunning mountain views, it’s becoming a hub for modern travelers.
– Why Now?
The Colombian government’s investment in safety and infrastructure is paying off. Medellín has seen an increase in tourism from the U.S., Europe, and other parts of Latin America.
Focus on properties in El Poblado or Laureles. These neighborhoods are trendy, safe, and have strong rental demand. Modern condos with amenities like pools or gyms tend to perform better.
Zadar, Croatia
Zadar offers a mix of history, beaches, and affordability that’s hard to beat. As Dubrovnik becomes increasingly crowded and expensive, Zadar is emerging as the next big thing in Croatian tourism.
– Why Now?
Croatia’s recent addition to the Eurozone and Schengen Area makes travel more seamless, boosting tourist numbers. Zadar’s accessibility through low-cost airlines is another plus.
Invest in apartments with sea views or properties near the Old Town. Highlight unique features like proximity to national parks or opportunities for island hopping.
Queenstown, New Zealand
Queenstown has long been a favorite for adventure seekers, but with the return of international tourism, it’s poised for even greater growth. Its mix of luxury and adventure travel makes it a lucrative market.
– Why Now?
New Zealand’s focus on sustainable tourism aligns with Queenstown’s appeal. Increased flights from Asia and North America are expected to boost arrivals significantly in 2025.
Luxury chalets and lodges with views of Lake Wakatipu or the surrounding mountains offer premium returns. Consider eco-friendly designs to tap into the sustainable travel market.
Asheville, North Carolina
Back in the U.S., Asheville’s artsy vibe, craft breweries, and scenic location in the Blue Ridge Mountains are attracting a growing number of domestic tourists.
– Why Now?
Post-pandemic trends show increased demand for regional travel and nature-focused destinations. Asheville fits this niche perfectly, making it a safe yet profitable investment option.
Properties close to downtown or near hiking trails perform best. Unique stays, like treehouses or tiny homes, can command higher nightly rates.
Investing in emerging locations isn’t just about finding cheap properties—it’s about identifying markets with long-term growth potential. Cities and regions with rising tourism, improving infrastructure, and government support for investors often yield the best returns. Use local market data, consult with professionals, and stay ahead of travel trends to make smart, strategic investments.