Airbnb Occupancy Rates in Retiro, Madrid(October 2026)

Source: GuestFavoritesLast updated: 2026-10-21

Airbnbs in Retiro, Madrid earn an average of €45,433 per year, with a typical occupancy rate of 74% and daily rates averaging €169. There were 373 listings published on Airbnb in October 2026.

This analysis will dive into the market dynamics, pricing strategies, and investment opportunities for short-term rental investors in Retiro, Spain.

Retiro Airbnb Market Map (October 2026)

373 listings

Retiro Market Performance

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Average Daily Rate (ADR)€169Average daily income from a booked room in Retiro.
Occupancy Rate74% Indicates strong demand and frequent bookings.
Median Annual Revenue€45,433The usual yearly earnings for an Airbnb in Retiro.
Active Listings373The total count of active short-term rental listings.

Spain average: 64% occupancy, €173 per night.

Airbnb occupancy rates by city in Spain

Period: October 2025 - September 2026

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How Often Will Your Airbnb Be Booked in Retiro?

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Occupancy rates directly impact your revenue potential. Understanding demand patterns helps you set realistic expectations and optimize your availability strategy.

The current average occupancy rate in Retiro is 74%, meaning properties are booked for about 269 nights per year. However, occupancy varies significantly based on property quality and management. Here's what you can expect:

Airbnb Occupancy Tiers in Retiro

Premium(Top 10%)
High-performing(Top 25%)
Average(Median)
Low-performing(Bottom 25%)
96%89%75%49%
*High desirability & optimized availability
*Good market fit & guest satisfaction
*Standard market performance
*Higher vacancy, optimization needed

Seasonal Occupancy Patterns in Retiro

Peak Months

September, May

Highest demand and occupancy rates. Perfect for premium pricing strategies and maximizing revenue. Consider longer minimum stays and higher rates.

Shoulder Months

March, August

Moderate demand with balanced pricing opportunities. Good for attracting budget-conscious travelers while maintaining reasonable occupancy rates.

Low Months

January, February

Lower demand requires competitive pricing and creative marketing. Focus on local events, extended stay discounts, and targeting specific traveler segments.

How Much Can You Earn with Airbnb in Retiro?

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One of the most common questions for potential Airbnb hosts in Retiro is about earning potential. Let's break down the revenue patterns and what you can realistically expect to earn.

Monthly Revenue Trends in Retiro

Best-in-class Airbnb properties (top 10%) in Retiro achieve around €67,112 annually, while strong performers (top 25%) earn at least €46,438. Typical properties generate about €31,062 per year, and entry-level listings (bottom 25%) see earnings near €15,898, often with room for optimization. Keep in mind, these are market averages—your actual earnings can be even higher depending on your property's location, bedrooms, guest capacity, and unique amenities.

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What Should You Charge for Your Airbnb in Retiro?

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Pricing is one of the most critical decisions for Airbnb success. Let's analyze the current pricing landscape and help you understand what rates you can realistically charge.

The current average daily rate in Retiro is €169 per night. However, pricing varies significantly based on property quality and location. Here's what different property tiers typically charge:

Airbnb Pricing Tiers in Retiro

Premium(Top 10%)
High-performing(Top 25%)
Average(Median)
Budget(Bottom 25%)
€261per night€191per night€140per night€100per night
*Top locations, big properties, premium amenities
*Good property management, highly rated
*Standard market performance
*Basic properties, less desirable locations

Is It Profitable to Start an Airbnb in Retiro?

Investment Analysis →

Understanding the profitability potential is crucial for any Airbnb investment decision. Let's analyze the revenue performance and profit margins in the Retiro market to help you make informed financial decisions.

Revenue Performance
Top Performers (10%)€67,112
Strong Performers (25%)€46,438
Market Average€45,433
Entry Level (25%)€15,898
Profitability Factors
High Occupancy: 74% occupancy rate indicates strong demand and consistent bookings.
Strong ADR: €169 average daily rate supports healthy profit margins.
Market Growth: Emerging market with proven demand patterns.
Profitability Outlook: Retiro offers excellent profitability potential with premium pricing opportunities. The combination of 74% occupancy and €169 ADR creates a profitable investment environment for short-term rental hosts.

What Are the Airbnb Regulations in Retiro?

Understanding local regulations is crucial for operating a successful Airbnb. Let's examine the compliance landscape and what you need to know about licensing requirements in Retiro.

Rules for new hosts

Can a new host open an entire-home rental here?

Only in some areas. A permit is required.

Regulation level High
  1. April 2024Transitional suspension of new tourist-flat licences in residential buildings (April 2024)
  2. September 2025Plan Reside (PGOU amendment) published in BOCM and in force
  3. TodayNo change scheduled
New licences
Limited to some areasMunicipal
Licence
PermitMunicipal
Zoning limits
StrictMunicipal

Madrid's Plan Reside (PGOU amendment, in force 22 September 2025) bans new tourist flats in residential buildings in the historic centre, where tourist lodging is allowed only in whole non-residential or catalogued buildings. Elsewhere a flat needs independent street access (a ground floor, for example) plus a municipal urban licence on top of the regional registration. Licences in residential buildings were frozen from April 2024, and the city reports intensive closures of unlicensed flats.

Last checked October 20, 2026
This is a summary, not legal advice. Check with the local authority before investing.

Registration Numbers on Airbnb

20% of the active Airbnb listings we tracked last month display a registration or license number.

This reflects what hosts publish on their Airbnb listings, not the local legal requirements. Always confirm them with local authorities.

Our Classification Some Registered Listings

Key Regulatory Requirements

Standard registration and tax obligations apply.

  • Registration numbers must be displayed on listings
  • Hosts must comply with local zoning laws
  • Tax collection and reporting obligations apply
  • Safety standards and insurance requirements must be met

Compliance Benefits

Moderate compliance requirements balance ease of entry with market protection.

  • Avoid fines and legal issues
  • Build trust with guests and neighbors
  • Ensure long-term business sustainability
  • Maintain listing visibility on platforms

Important: Regulations can change frequently, and requirements may vary by neighborhood. Always verify current requirements with local authorities before starting your Airbnb business.

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