Best Locations for Airbnb and Vacation Rentals in Delhi: Where to Invest for Short-Term Gains

Renting Property
09 Oct 2025
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Short-term rentals through platforms like Airbnb have become increasingly popular in Delhi, especially among tourists, working professionals, and even NRIs visiting family. As India’s capital and a global tourism hotspot, Delhi offers excellent opportunities for property owners to earn substantial income by converting homes or apartments into vacation rentals.

But not every locality is suitable for Airbnb. For strong occupancy rates, good reviews, and high returns, location is everything. If you're considering entering the short-term rental market, this guide will help you identify the best locations for Airbnb and vacation rentals in Delhi, what type of properties work best, and how to start.

Whether you’re a new investor or already own property in Delhi, read on to discover how to make the most of the Airbnb boom.

Why Delhi Is a Great Market for Vacation Rentals

Delhi sees a steady stream of domestic and international visitors all year round. From historical landmarks like Red Fort and Qutub Minar to business hubs in Connaught Place and Okhla, the city is a magnet for diverse travelers. Short-term rentals cater to:

  • Tourists looking for local experiences

  • Business travelers who prefer homes over hotels

  • Families visiting Delhi for weddings or medical purposes

  • NRIs returning temporarily

  • Students or interns looking for flexible stays

Airbnb rentals offer comfort, kitchen facilities, and often better value than hotels—making them an attractive choice for all kinds of guests.

Top Localities for Airbnb and Short-Term Rentals in Delhi

Here are the most promising areas to run a successful vacation rental in the city:

1. Connaught Place (CP)

Why it works:
CP is Delhi’s central business district, surrounded by major tourist attractions like India Gate, Rajpath and Janpath Market. Business travelers, backpackers, and foreign tourists frequently book stays here.

Ideal property type:
Studio apartments or 1BHKs with modern interiors and Wi-Fi

Tip:
Keep the decor minimal yet trendy. Include clear directions to nearby metro stations.

2. Lajpat Nagar

Why it works:
Close to South Delhi markets, hospitals, and the metro, Lajpat Nagar draws NRIs and international tourists who come for medical tourism and shopping.

Ideal property type:
Independent builder floors or apartments with a home-like feel

Tip:
Add a fully equipped kitchen and laundry for long-stay guests.

3. South Extension I & II

Why it works:
Known for its posh feel and shopping outlets, this area is ideal for premium Airbnb rentals. It attracts guests seeking peaceful yet well-connected neighborhoods.

Ideal property type:
2BHK or larger fully furnished homes with security and gated access

Tip:
Offer amenities like smart locks, parking, and 24x7 support.

4. Hauz Khas Village / Green Park

Why it works:
Hauz Khas Village is Delhi’s most artistic and vibrant neighborhood, loved by younger travelers and digital nomads. With cafes, bars, and scenic lakeside views, this area is perfect for vacation vibes.

Ideal property type:
Loft-style homes, designer 1BHKs, or studio apartments with artistic touches

Tip:
Highlight nearby attractions, walkable cafes, and cultural spots in your Airbnb listing.

5. Saket

Why it works:
Close to malls (Select Citywalk, DLF Avenue) and business parks, Saket is ideal for families, working professionals, and even medical tourists visiting Max Hospital.

Ideal property type:
Fully furnished 2 or 3BHK builder floors

Tip:
Offer an airport pickup add-on or help guests book local cabs or autos.

6. Karol Bagh

Why it works:
Karol Bagh attracts budget-conscious travelers, especially those visiting religious landmarks and shopping streets. Being near New Delhi Railway Station adds to its value.

Ideal property type:
Budget-friendly apartments or PG-style rooms with neat interiors

Tip:
Provide detailed check-in instructions and clear Wi-Fi passwords to boost ratings.

7. Vasant Kunj

Why it works:
Vasant Kunj is close to the airport and diplomatic areas, attracting expats and short-term travelers. It offers premium housing options and gated security.

Ideal property type:
High-end apartments with modern kitchens and backup power

Tip:
Target corporate travelers and embassy guests with longer stays and premium pricing.

8. Rohini & Pitampura

Why it works:
These North Delhi areas are gaining popularity due to affordable property rates and metro connectivity. Families visiting relatives and people attending local functions often book here.

Ideal property type:
Independent floors or 1BHKs in secure neighborhoods

Tip:
Focus on comfort and cleanliness. Keep pricing competitive.

9. Dwarka

Why it works:
Dwarka’s closeness to the IGI Airport and its spacious housing options make it a practical choice. It also sees bookings from airline crew and transit passengers.

Ideal property type:
2BHK flats in gated societies near metro stations

Tip:
Offer flexible check-in/check-out for overnight travelers.

What Makes a Property Airbnb-Ready in Delhi

To stand out in a competitive market, your property needs to be:

  • Fully furnished with beds, sofas, kitchen appliances, ACs, and geysers

  • Visually appealing – bright photos, clean design, and good lighting

  • Digitally equipped – fast Wi-Fi, smart TV, and charging points

  • Easy to access – clear check-in process, safe locality, near metro

  • Legally compliant – with permission from society (if needed), KYC norms, and proper taxes declared

Platforms like Property Aaj (https://www.propertyaaj.com) can help you list and promote your property in high-traffic zones of Delhi.

Legal and Regulatory Checklist

Here are some important guidelines for hosting in Delhi:

  • Get NOC from RWAs or societies, especially in apartment complexes.

  • Register as a service provider if you’re offering multiple listings

  • Pay taxes on rental income and keep invoices if applicable

  • Ensure safety standards like fire extinguishers and emergency exits

Following local laws keeps your business smooth and avoids penalties or guest issues.

Maximizing Bookings and Earnings

Here’s how to improve visibility and revenue:

  • List your property on multiple platforms, including Property Aaj

  • Use professional photos with natural lighting and wide angles

  • Offer unique touches – free breakfast, personalized welcome notes

  • Respond quickly to inquiries and reviews

  • Maintain 5-star hygiene standards

Happy guests lead to better reviews, higher search rankings, and repeat bookings.

Conclusion

The Delhi Airbnb and short-stay rental market is vibrant and filled with opportunities. If you own a property in localities like Connaught Place, Saket, South Extension, or Hauz Khas, turning it into a vacation rental can be a smart and profitable move.

As tourism, medical visits, and corporate travel continue to grow, Delhi will remain a hotspot for short-term stays. With the right property, proper setup, and a focus on guest satisfaction, your home can become one of the top-rated Airbnb listings in the capital.

When you're ready to list your rental and reach the right audience, use trusted platforms like Property Aaj (https://www.propertyaaj.com) to attract the perfect guests and maximize your returns.

FAQs: Airbnb & Vacation Rentals in Delhi

Q1. Is Airbnb legal in Delhi?
Yes, Airbnb is legal, but hosts should follow RWA rules and ensure taxes are filed properly.

Q2. Which part of Delhi is best for Airbnb?
Connaught Place, South Extension, Hauz Khas, and Saket are among the top-performing areas.

Q3. Do I need to register my property for short-term rental?
While it’s not mandatory for single properties, it's good practice to get local permissions, especially in societies or gated communities.

Q4. How much can I earn from Airbnb in Delhi?
Depending on the area and amenities, hosts can earn ₹1,500 to ₹6,000 per night or more.

Q5. What type of guests book Airbnb in Delhi?
Guests include international tourists, business travelers, medical visitors, families, and students.

Q6. How can I improve my Airbnb ratings?
Offer excellent hospitality, maintain hygiene, respond quickly to guest messages, and provide a clean, comfortable stay.

Read more about property matters with our specialists and browse the latest property listings on Property Aaj. Download the app from the Play Store and App Store now for easy buying, selling, and renting!