Cambridge is one of the UK’s most profitable locations for Airbnb and short-term rentals, thanks to its high tourism, corporate demand, and a thriving academic sector. With the right location, landlords can achieve high occupancy and strong rental yields.
In this guide, we’ll explore the best areas in Cambridge for Airbnb investment, including insights into guest demand, rental yields, and the property types that will bring you the best returns.
1. Why Cambridge Is a Prime Market for Short-Term Rentals
1.1 Year-Round Demand from Tourists, Business Travelers & Academics
Cambridge attracts over 8 million visitors annually, including international tourists, conference attendees, and university guests. Additionally, the demand from business professionals and researchers in areas like Silicon Fen, the Bio Campus, and Addenbrooke’s Hospital keeps occupancy high.
Cambridge University also ensures a steady flow of students, academics, and visiting scholars year-round, making it an ideal location for short-term lets.
1.2 High Occupancy & Strong Rental Yields
City-centre Airbnb properties in Cambridge typically maintain 80-90% occupancy, even during the off-seasons. Short-term rental yields can be as much as 30-50% higher than traditional long-term lets.
✔ Pro Tip: Investing in the right location in Cambridge can double your rental income compared to long-term letting.
2. The Best Areas in Cambridge for Airbnb Investment
2.1 Cambridge City Centre – Ideal for Tourists & Business Travelers
Why It’s Great for Airbnb:✔ Prime location for tourists with proximity to King’s College, punting, museums, and historic sites.✔ High foot traffic and easy access to transport hubs.✔ Strong demand from business travelers, academics, and conference attendees.
Best Property Types:
Luxury serviced apartments for business guests.
Studio & one-bedroom flats for solo travelers and couples.
Townhouses for families and groups.
Expected Returns:
Nightly Rate: £150 - £300
Occupancy Rate: 85-95%
✔ Pro Tip: A well-furnished 1-bedroom apartment in the city centre can generate £3,500+ per month on Airbnb, compared to £1,800 on a long-term rental.
2.2 Station Area & CB1 – Perfect for Business Travelers
Why It’s Great for Airbnb:✔ Fast-growing business district with high demand for short-term stays.✔ Easy access to Cambridge Railway Station (trains to London in 45 minutes).✔ Popular with tech professionals, NHS staff, and corporate guests.
Best Property Types:
Modern apartments with workspace and high-speed WiFi.
Serviced studios for corporate clients.
Short-term lets for professionals relocating to Cambridge.
Expected Returns:
Nightly Rate: £120 - £250
Occupancy Rate: 80-90%
✔ Pro Tip: Long-stay corporate guests prefer direct booking options, reducing Airbnb fees and boosting profits.
2.3 Mill Road & Romsey – Trendy Area for Young Professionals & Academics
Why It’s Great for Airbnb:✔ A vibrant, multicultural neighborhood with cafes, pubs, and local charm.✔ Close to Cambridge University, Anglia Ruskin University, and tech hubs.✔ Affordable entry price for investors compared to city centre properties.
Best Property Types:
Mid-range apartments & Victorian terraced houses.
Houses with multiple bedrooms for groups and visiting academics.
Self-contained units for professionals on short-term contracts.
Expected Returns:
Nightly Rate: £100 - £200
Occupancy Rate: 75-85%
✔ Pro Tip: This area attracts longer Airbnb stays (1+ weeks), reducing turnover costs and increasing profitability.
2.4 Near Addenbrooke’s Hospital & Biomedical Campus – Ideal for NHS & Medical Stays
Why It’s Great for Airbnb:✔ High demand from NHS workers, researchers, and visiting medical staff.✔ Longer stays (2 weeks – 3 months) compared to typical tourist lets.✔ Proximity to Royal Papworth Hospital and Cambridge Bio Campus ensures consistent bookings.
Best Property Types:
Self-contained flats & serviced apartments for medical professionals.
Modern homes with flexible stay options.
Furnished apartments with fully equipped kitchens for long-term guests.
Expected Returns:
Nightly Rate: £90 - £180
Occupancy Rate: 85-90%
✔ Pro Tip: Serviced accommodation in this area can achieve stable, long-term Airbnb bookings with lower management costs.
2.5 Chesterton & Riverside – Scenic & Residential Appeal
Why It’s Great for Airbnb:✔ Beautiful riverside views and scenic walks along the River Cam.✔ Close to Cambridge Science Park & business parks (popular for corporate lets).✔ Attractive to families and long-stay guests seeking quieter, more spacious accommodations.
Best Property Types:
Spacious apartments with balconies or garden views.
Family-friendly townhouses for extended stays.
Luxury riverside homes for high-end Airbnb guests.
Expected Returns:
Nightly Rate: £130 - £250
Occupancy Rate: 75-85%
✔ Pro Tip: Guests in this area tend to stay longer, reducing turnover costs and maximizing profits.
3. How to Choose the Right Area for Your Airbnb Investment
✔ For High Nightly Rates & Short Stays → City Centre, Station Area (CB1).✔ For Corporate & Business Guests → Near Science Parks, Bio Campus, & Addenbrooke’s Hospital.✔ For Family & Long-Term Stays → Chesterton, Mill Road, Riverside.✔ For Budget-Friendly Investments → Romsey & Mill Road offer lower property prices with strong demand.
✔ Pro Tip: Short-term rentals near business hubs offer stable, year-round income, while city-centre properties perform best during peak tourism seasons.
4. How Cambridge Stays Helps Landlords Maximize Short-Term Rental Profits
Cambridge Stays offers a comprehensive solution to help you maximize your Airbnb returns:
✅ Property Selection & Investment Advice – Choose the best location for maximum ROI.✅ Full Airbnb Management – Handling cleaning, guest communication, dynamic pricing, and maintenance.✅ Direct Booking Strategy – Reduce Airbnb fees and increase net profits.
📌 Case Study: How a Cambridge Landlord Increased Earnings by 60%
Property: 1-bedroom serviced apartment near Cambridge Station.Strategy: Switched from long-term rental to Airbnb + corporate lets.Results: Increased monthly earnings from £1,800 (long-term) to £3,500 (short-term).
Conclusion & Call to Action
Cambridge’s booming Airbnb market offers landlords the opportunity to earn higher returns than traditional rentals. The best areas depend on your target audience—from tourists & business travelers to NHS & academic guests.
📞 Want expert advice on where to invest in a short-term rental?🔹 Contact Cambridge Stays today for a free consultation!
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