Side-by-side comparison

Madrid vs Valencia: which is better for Airbnb investment?

We compare the Spain short-term rental markets across occupancy, daily rate, RevPAR, year-over-year trend, and regulation.

Bottom line

Madrid edges ahead of Valencia on higher occupancy (36% vs 30%), stronger RevPAR (£27 vs £20).

Head-to-head metrics

 MadridValencia
Median occupancy36%30%
Median daily rate£94£87
Median RevPAR£27£20
Active listings16,0156,234
YoY occupancy
YoY daily rate
Regulation risk
Annual night capNoneNone
License requiredNoNo

Full analysis: Madrid vs Valencia

On the money side of this comparison — what a listing actually earns against the nights it has available — Madrid finishes clearly ahead of Valencia. Revenue per available night — rate and occupancy combined, the figure that actually reaches an owner — is 31.7% higher in Madrid: £27 against £20. Madrid's listings run at 36% occupancy against 30% in Valencia, worth 6 extra points of booked calendar every year. Those gaps are wide enough to survive a normal year's variance.

Madrid takes both halves of the yield equation, which is less common than it sounds. It charges more per night — £94 against £87 — and still fills more of the year, 36% against 30%. A market that leads on price and utilisation at once is normally one where demand has outrun supply, rather than one where hosts are discounting to keep the calendar busy. RevPAR reflects the double advantage at £27 against £20.

That verdict needs a caveat, because Valencia is not simply the weaker market of the two. Valencia is the less crowded of the two — 6,234 active listings to 16,015 — so a well-run property has fewer near-identical rivals to out-rank. Valencia sits at the cheaper end at £87 a night against £94, which lowers the bar for filling shoulder-season dates and usually tracks a lower purchase price too. If your model leans on that dimension, the ordering above can reasonably flip.

Neither Madrid nor Valencia currently has a verified short-term rental regulation record in our register, so the comparison above is a yield comparison only. Regulation is the single largest source of downside in this asset class — an unverified market is an unpriced risk, not an absent one.

The two calendars also behave differently. Madrid peaks in September at 71.3% and bottoms in February at 45.5%; Valencia runs from 64.4% in September down to 36.7% in November. Both swing by a similar amount across the year, so neither offers meaningfully steadier cash flow than the other.

Who each suits, then. Madrid suits buyers who want a conventional, lightly regulated entry. Valencia answers to the same regulatory profile, so the split between them is operational rather than legal. Every figure above comes from the same Inside Airbnb snapshot pipeline on both sides, dated 2025-09, filtered to listings with at least one booking in the last twelve months. Occupancy medians are drawn from 7,469 active Madrid listings and 3,224 in Valencia.

Frequently asked questions

Is Madrid or Valencia better for Airbnb investment?
Madrid, on the data we track. It leads on stronger RevPAR (£27 vs £20), higher occupancy (36% vs 30%), and higher median annual revenue (£9,792 vs £7,451). Valencia is not the weak side of this pair, though — it wins on a thinner competitive field (6,234 vs 16,015 active listings).
Which has higher occupancy, Madrid or Valencia?
Madrid, at 36% median occupancy against 30% in Valencia — a gap of 6 points. That is a real but modest edge; a well-run listing in Valencia can close most of it.
Which has higher nightly rates, Madrid or Valencia?
Madrid, at £94 a night against £87 in Valencia — roughly 8.8% more. Revenue per available night agrees rather than contradicts: £27 in Madrid against £20, so the rate premium survives contact with the occupancy figures.
Which is the bigger Airbnb market, Madrid or Valencia?
Madrid, with 16,015 active listings against 6,234 in Valencia. Size cuts both ways: a deep market gives you comparables, contractors and an exit, while a thinner one means fewer near-identical rivals competing for the same search results.
How much can you earn from an Airbnb in Madrid vs Valencia?
Madrid earns more: roughly £9,792 a year for a median listing against £7,451 in Valencia. Those are gross booking revenues before cleaning, management, platform fees, furnishing amortisation and tax — budget for a meaningful share of them, and note that a median listing is a median operator, not a good one.
What is the best time of year to rent out an Airbnb in Madrid or Valencia?
Madrid peaks in September at 71.3% occupancy and troughs in February at 45.5%; Valencia peaks in September at 64.4% and troughs in November at 36.7%. Both markets peak in the same month, so holding one in each does nothing to smooth your calendar.

Go deeper on each city

Market guide
Airbnb in Madrid
Occupancy, ADR, neighborhoods, regulation
Market guide
Airbnb in Valencia
Occupancy, ADR, neighborhoods, regulation
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