Investing in Airbnbs in Nishinari Ku, Osaka: A Smart Move

Nishinari Ku, a district in Osaka, Japan, is becoming an attractive area for Airbnb investors. Known for its cultural richness and growing popularity among tourists, Nishinari Ku offers promising investment opportunities. Here’s a comprehensive analysis based on the latest data from AirDNA.

Submarket Performance Overview

Nishinari Ku’s submarket performance is rated at 84 out of 100, signifying a robust and growing market for short-term rentals. Key performance indicators (KPIs) for this submarket include:

• Annual Revenue: ¥3.5M (10% increase from the past year)
• Occupancy Rate: 65% (6% decrease from the past year)
• Average Daily Rate (ADR): ¥17.8K (4% increase from the past year)
• Revenue Per Available Room (RevPAR): ¥10.3K (14% increase from the past year)

Rental Demand and Growth

Nishinari Ku boasts a high rental demand score of 84, reflecting its appeal among travelers. The submarket has experienced significant revenue growth (92), indicating a thriving rental market. The seasonality score of 90 suggests consistent demand throughout the year, making it a stable investment choice.

Property Listings and Availability

Nishinari Ku has a total of 1,703 active listings, a remarkable 73% increase from the past year, demonstrating a surge in interest for short-term rentals. Most listings are available on Airbnb (90%), with Vrbo and both platforms combined making up 5% each.

The listings are categorized by size as follows:

• 1 Bedroom: 51%
• 2 Bedroom: 23%
• 3 Bedroom: 14%
• 4 Bedroom: 9%
• 5+ Bedroom: 3%

In terms of availability, 40% of listings are available for 271-365 nights per year, indicating high accessibility for potential guests.

Occupancy and Length of Stay

The average occupancy rate in Nishinari Ku is 65%, with a slight decline of 6% from the previous year. The average length of stay is 3 days, which has seen a 2% increase, suggesting a preference for short but frequent stays. The booking lead time is approximately 43 days, allowing hosts ample time to prepare for incoming guests.

Revenue and Rates

The average annual revenue per listing in Nishinari Ku is ¥3.5M, a 10% increase from the previous year. The ADR stands at ¥17.8K, with entire place rentals averaging ¥18.4K per night. Professionally managed properties and luxury listings command higher rates, reflecting their premium offerings.

Higher Yields from Airbnb Investments

Investing in Airbnbs in Nishinari Ku offers higher yields compared to traditional long-term rentals. The average daily rate and revenue per available room are substantially higher for short-term rentals. The combination of high rental demand, increasing revenue, and favorable seasonality make Airbnbs a lucrative investment in this area.

Strategic Location Selection

When investing in Airbnbs in Nishinari Ku, it’s essential to select properties in areas that permit short-term rentals. Popular neighborhoods within Nishinari Ku offer proximity to major attractions and transport links, enhancing the property’s appeal to tourists.

Amenities and Regulations

To attract more guests, properties in Nishinari Ku offer a range of amenities:

• Air Conditioning
• Wired and Wireless Internet
• Kitchen facilities
• Heating

Despite the strong performance metrics, investors should be aware of the regulatory environment. The regulation score of 56 indicates moderate restrictions, so it’s crucial to ensure compliance with local laws regarding short-term rentals.

Conclusion

Nishinari Ku, Osaka, presents a prime opportunity for investing in Airbnb properties. The submarket’s strong performance, high rental demand, and growing revenue make it an attractive option for investors looking to capitalize on the booming tourism industry. By selecting the right properties and ensuring compliance with local regulations, investors can enjoy higher yields and stable returns in this dynamic market.