Authored by the expert who managed and guided the team behind the South Korea Property Pack
Everything you need to know before buying real estate is included in our South Korea Property Pack
Daegu is South Korea's fourth-largest city, and yes, foreigners can legally buy and rent out residential property there in 2026.
The process involves more paperwork than in many Western countries, but it is very much doable if you follow the rules.
We constantly update this blog post to reflect the latest regulations, market data, and rental trends specific to Daegu.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Daegu.
Insights
- Daegu's gross rental yields typically range from 3.2% to 4.6% in early 2026, with a citywide average around 3.8%, which is moderate by global standards but consistent with South Korea's deposit-heavy rental culture.
- Short-term rental occupancy in Daegu averages only about 45%, meaning Airbnb-style hosting requires professional management and compliance to be profitable here.
- Suseong-gu commands the highest rents in Daegu due to its reputation as the city's premium school district, but this does not always translate to the best yields because purchase prices are also elevated.
- Airbnb hosts in Daegu are now required to register as a business following a 2025 policy change, so casual short-term renting without proper licensing carries real enforcement risk.
- Daegu's vacancy rate for long-term rentals hovers around 6% to 10% annually, which means landlords should budget for roughly one month of vacancy every one to two years.
- The average nightly rate for short-term rentals in Daegu is approximately 103,000 Korean won (around $71 USD or €67 EUR), which is lower than Seoul but still viable for well-located properties.
- Dalseo-gu and Buk-gu tend to offer better rental yields than Suseong-gu because property prices are lower while tenant demand remains solid among families and students.
- Non-resident landlords in Daegu should expect to pay Korean taxes on rental income, typically collected through withholding mechanisms coordinated with the National Tax Service.
Can I legally rent out a property in Daegu as a foreigner right now?
Can a foreigner own-and-rent a residential property in Daegu in 2026?
As of early 2026, foreigners can legally purchase and rent out residential property in Daegu, South Korea, without needing special government approval in most cases.
The most common ownership structure for foreigners is direct individual ownership, though some investors use Korean corporations or joint ventures depending on their tax situation and long-term plans.
The main hurdle is not a ban but rather the mandatory reporting requirements under the Act on Report on Real Estate Transactions, which means you must file acquisition reports within 60 days of purchase.
If you're not a local, you might want to read our guide to foreign property ownership in Daegu.
Do I need residency to rent out in Daegu right now?
You do not need to be a Korean resident to own and rent out property in Daegu, so remote ownership from abroad is legally permitted.
However, if you earn rental income in Korea, you should expect to register with the National Tax Service and obtain a tax identification number for proper income reporting.
A Korean bank account is not strictly required by law, but in practice it makes rent collection much easier since most tenants and property managers use domestic bank transfers.
Managing a Daegu rental entirely from overseas is feasible, but you will almost certainly need a local property manager to handle tenant showings, maintenance, and the paperwork that comes with Korea's formal lease reporting system.
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What rental strategy makes the most money in Daegu in 2026?
Is long-term renting more profitable than short-term in Daegu in 2026?
As of early 2026, long-term renting is generally the safer and more predictable profit path in Daegu, while short-term renting can yield higher revenue only if you operate legally and manage it like a real hospitality business.
A well-managed long-term rental in Daegu might generate around 9 to 14 million Korean won per year (roughly $6,200 to $9,700 USD or €5,800 to €9,000 EUR), while a comparable short-term rental could reach 15 to 20 million won ($10,300 to $13,800 USD or €9,700 to €12,900 EUR) annually, but only with strong occupancy and full compliance.
Short-term renting tends to outperform long-term financially in Daegu's central Jung-gu district and near major event venues, where domestic travelers and business visitors create sporadic but concentrated demand.
What's the average gross rental yield in Daegu in 2026?
As of early 2026, the average gross rental yield for residential properties in Daegu is around 3.8%, which reflects the city's moderate rent levels relative to property prices.
The realistic range spans from about 3.2% on the low end (in premium areas like Suseong-gu) to around 4.6% on the high end (in more affordable neighborhoods with solid tenant demand).
Studios and small one-bedroom apartments in Daegu typically achieve the highest gross yields because they attract a steady stream of students and young professionals who prioritize convenience over space.
By the way, we have much more granular data about rental yields in our property pack about Daegu.
What's the realistic net rental yield after costs in Daegu in 2026?
As of early 2026, the average net rental yield after typical costs in Daegu falls around 2.6%, which is noticeably lower than gross yields due to Korea's specific landlord expenses.
Most Daegu landlords experience net yields somewhere between 2.1% on the low end and 3.2% on the high end, depending on how efficiently they manage costs and vacancy.
The three biggest cost categories that eat into your gross yield in Daegu are building management fees (called gwanlibi), non-resident tax withholding and filing costs, and vacancy losses that tend to be higher here than in Seoul due to softer demand.
You might want to check our latest analysis about gross and net rental yields in Daegu.
What monthly rent can I get in Daegu in 2026?
As of early 2026, typical monthly rents in Daegu range from around 350,000 to 550,000 Korean won ($240 to $380 USD or €225 to €355 EUR) for a studio, 500,000 to 800,000 won ($345 to $550 USD or €320 to €515 EUR) for a one-bedroom, and 750,000 to 1,200,000 won ($515 to $825 USD or €485 to €775 EUR) for a two-bedroom.
A decent entry-level studio in Daegu typically rents for 350,000 to 450,000 Korean won per month ($240 to $310 USD or €225 to €290 EUR), especially in areas like Buk-gu near universities.
A standard one-bedroom apartment in a mid-range Daegu neighborhood like Dalseo-gu usually commands 550,000 to 700,000 won monthly ($380 to $480 USD or €355 to €450 EUR).
For a typical two-bedroom in a desirable area like Suseong-gu, expect to charge 900,000 to 1,200,000 won per month ($620 to $825 USD or €580 to €775 EUR), reflecting the premium families pay for school-zone access.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Daegu.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in South Korea versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What are the real numbers I should budget for renting out in Daegu in 2026?
What's the total "all-in" monthly cost to hold a rental in Daegu in 2026?
As of early 2026, the total monthly cost to hold and maintain a typical rental property in Daegu ranges from about 180,000 to 520,000 Korean won ($125 to $360 USD or €115 to €335 EUR), depending on the property size and whether you use professional management.
For a studio, expect monthly holding costs of 180,000 to 350,000 won ($125 to $240 USD); for a one-bedroom, 220,000 to 420,000 won ($150 to $290 USD); and for a two-bedroom, 280,000 to 520,000 won ($190 to $360 USD).
The single largest cost category for Daegu landlords is typically the building management fee (gwanlibi) combined with property management fees if you hire someone to handle tenant relations remotely.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Daegu.
What's the typical vacancy rate in Daegu in 2026?
As of early 2026, the typical vacancy rate for long-term rentals in Daegu runs between 6% and 10% annually, which is higher than Seoul due to the city's softer demand dynamics.
Daegu landlords should realistically budget for about three to six weeks of vacancy per year, or roughly one full month every one to two years, because tenant turnover in regional cities tends to be less predictable than in the capital.
The main factor driving vacancy differences across Daegu neighborhoods is proximity to demand anchors like universities, major employers, good schools, and transit hubs, with peripheral areas seeing notably longer vacancy periods.
Tenant turnover in Daegu typically peaks in late winter (February and March) when the academic and corporate calendar triggers lease endings, so landlords should prepare for slightly longer vacancies during this season.
We have a whole part covering the best rental strategies in our pack about buying a property in Daegu.
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Where do rentals perform best in Daegu in 2026?
Which neighborhoods have the highest long-term demand in Daegu in 2026?
As of early 2026, the three neighborhoods with the highest overall long-term rental demand in Daegu are Suseong-gu (especially Beomeo-dong and Manchon-dong), Jung-gu's Dongseongno area, and Dalseo-gu's Wolseong-dong and Sangin-dong districts.
Families in Daegu strongly prefer Suseong-gu neighborhoods like Beomeo-dong and Hwanggeum-dong because of the area's excellent schools and reputation as the city's most desirable residential zone.
Students gravitate toward Buk-gu near Kyungpook National University (especially Daehyeon-dong) and Dalseo-gu's Seongseo area near Keimyung University, where smaller units rent quickly at affordable prices.
Expats and international professionals, though a smaller segment in Daegu than in Seoul, tend to cluster in Jung-gu's walkable Dongseongno district and parts of Suseong-gu like Beomeo-dong where housing quality is higher.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Daegu.
Which neighborhoods have the best yield in Daegu in 2026?
As of early 2026, the neighborhoods with the best rental yields in Daegu are Dalseo-gu (Sangin-dong and Wolseong-dong), Buk-gu (Chilgok area clusters like Taejeon-dong), and select pockets of Nam-gu and Seo-gu where purchase prices remain low but tenant demand is stable.
These top-yielding Daegu neighborhoods typically deliver gross rental yields in the 4% to 4.6% range, compared to 3.2% to 3.5% in premium areas like Suseong-gu.
The key characteristic allowing these neighborhoods to outperform on yield is that they attract solid, working-class tenant demand (families, students, local employees) without commanding the price premiums that school-zone prestige adds in Suseong-gu.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Daegu.
Where do tenants pay the highest rents in Daegu in 2026?
As of early 2026, the three neighborhoods where tenants pay the highest rents in Daegu are Suseong-gu's Beomeo-dong, Manchon-dong, and Hwanggeum-dong, all of which benefit from the district's school-zone prestige.
In these premium Suseong-gu neighborhoods, a standard two-bedroom apartment typically rents for 1,000,000 to 1,400,000 Korean won per month ($690 to $965 USD or €645 to €900 EUR), while one-bedrooms command 650,000 to 900,000 won ($450 to $620 USD or €420 to €580 EUR).
What makes these neighborhoods command such high rents is not just location but the concentration of well-maintained apartment complexes with strong building management, which Korean families prioritize heavily.
The typical tenant profile in Daegu's highest-rent neighborhoods consists of dual-income families with school-age children who value educational access, stable communities, and newer building amenities over affordability.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of South Korea. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Daegu in 2026?
What features increase rent the most in Daegu in 2026?
As of early 2026, the three property features that increase monthly rent the most in Daegu are location within a well-managed newer apartment complex, proximity to top-rated schools (especially in Suseong-gu), and high-quality heating and air conditioning systems that handle Daegu's notoriously hot summers.
Being in a well-managed complex with clean common areas and reliable building systems can add a rent premium of 10% to 15% in Daegu, as Korean tenants strongly associate building quality with overall living standards.
One commonly overrated feature that Daegu landlords invest in but tenants rarely pay extra for is luxury kitchen finishes, since most Korean renters cook modestly and prioritize heating, cooling, and building management over high-end appliances.
An affordable upgrade that delivers strong returns in Daegu is installing a modern, efficient air conditioning unit, because the city's basin geography creates brutal summer heat and tenants will pay more for reliable cooling.
Do furnished rentals rent faster in Daegu in 2026?
As of early 2026, furnished studios and one-bedrooms in Daegu typically rent about two to three weeks faster than unfurnished equivalents, though this advantage diminishes for larger family-sized units where tenants often prefer to bring their own furniture.
Furnished apartments in Daegu generally command a rent premium of 8% to 12% over unfurnished units, making the investment worthwhile for landlords targeting students, young professionals, or short-term corporate relocations.
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How regulated is long-term renting in Daegu right now?
Can I freely set rent prices in Daegu right now?
At the start of a new lease in Daegu, landlords can generally set rent at whatever the market will bear, with no government-mandated price ceiling on initial rental amounts.
However, during lease renewals, Korea's Housing Lease Protection Act gives tenants strong rights, including a rent increase cap of around 5% that has been validated by recent Constitutional Court rulings, so you cannot freely raise rents on existing tenants.
What's the standard lease length in Daegu right now?
The standard residential lease length in Daegu is two years, which is the norm across South Korea and provides tenants with legal protections including the right to request one renewal under the Housing Lease Protection Act.
Security deposits in Korea follow a unique structure where landlords can legally request very large deposits (often equivalent to many months or even years of rent in "jeonse" arrangements), but for typical "wolse" monthly-rent leases in Daegu, deposits commonly range from 5 to 20 million Korean won ($3,450 to $13,800 USD or €3,225 to €12,900 EUR).
Landlords must return the deposit at the end of the tenancy minus any legitimate deductions for unpaid rent or damages, and Korean law provides tenants with strong protections to recover their deposits, including priority claims against the property.
We made this infographic to show you how property prices in South Korea compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How does short-term renting really work in Daegu in 2026?
Is Airbnb legal in Daegu right now?
Airbnb-style short-term rentals are legal in Daegu, but you cannot simply list a normal residential apartment without meeting specific licensing and registration requirements under South Korea's tourism accommodation laws.
To operate legally, you typically need to register as a tourism accommodation business under the Tourism Promotion Act, which involves local government approval, and as of 2025, Airbnb itself requires Korean hosts to provide valid business registration numbers before listing.
There are no specific annual night limits like some European cities impose, but the requirement to operate as a registered business effectively means casual, unlicensed hosting is not permitted.
The most common consequences for operating an unlicensed short-term rental in Daegu include platform removal by Airbnb, fines from local authorities, and potential legal complications with building management or neighbors who may report violations.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Daegu.
What's the average short-term occupancy in Daegu in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Daegu is approximately 45%, which is moderate and reflects the city's position as a regional hub rather than a major tourist destination.
The realistic occupancy range for most Daegu short-term rentals spans from about 35% on the low end (for poorly located or managed properties) to around 55% to 60% for well-optimized listings in prime locations.
The highest occupancy months in Daegu are typically during major local events, cherry blossom season in spring (April), and autumn foliage season (October and November), when domestic tourists visit nearby attractions like Palgongsan Mountain.
The lowest occupancy periods fall in the winter months (December through February) and the monsoon season (July and August), when travel to Daegu drops and competition among listings intensifies.
Finally, please note that you can find much more granular data about this topic in our property pack about Daegu.
What's the average nightly rate in Daegu in 2026?
As of early 2026, the average nightly rate for short-term rentals in Daegu is approximately 103,000 Korean won ($71 USD or €67 EUR), which is lower than Seoul but competitive for a regional South Korean city.
The realistic nightly rate range for most Daegu listings spans from about 60,000 won ($41 USD or €39 EUR) for basic studios to around 180,000 won ($124 USD or €116 EUR) for larger, well-appointed apartments in central locations.
During peak season (cherry blossom time, major events, autumn), nightly rates in Daegu can climb 20% to 35% higher than the annual average, while off-season rates often drop 15% to 25% below average to maintain occupancy.
Is short-term rental supply saturated in Daegu in 2026?
As of early 2026, the Daegu short-term rental market is competitive but not severely oversaturated, with approximately 1,835 active listings and moderate 45% average occupancy suggesting room for well-positioned new entrants.
The number of active STR listings in Daegu has been growing recently, driven by increased domestic travel interest and the platform compliance changes that professionalized part of the market.
The most oversaturated neighborhoods for short-term rentals in Daegu are central Jung-gu around Dongseongno and areas near Daegu Station, where listing density is highest and competition for the same traveler pool is intense.
Neighborhoods that still have room for new short-term rental supply include parts of Suseong-gu (appealing to families visiting schools or medical facilities) and areas near Apsan Park or Palgongsan, where nature tourism creates demand that current supply does not fully serve.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Daegu, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Act on Report on Real Estate Transactions (Korea Law) | Official Korean legal text from the national law database. | We used it to verify the legal framework for foreign property acquisition. We relied on it to avoid informal "blog law" interpretations. |
| Easy Law (MOLEG) Housing Lease Explainer | Government-run legal explainer from Korea's Ministry of Legislation. | We used it to translate complex lease laws into plain language. We cross-checked it against underlying statutes for accuracy. |
| MOLIT Real Transaction Disclosure System (RTMS) | Official Ministry of Land portal for reported transaction data. | We used it to anchor our rent and yield estimates. We treated it as the foundation for understanding Daegu's rental market reality. |
| Korea Real Estate Board (R-ONE) | National real estate statistics institution publishing official indices. | We used it to verify market direction and price trends. We cross-referenced it with transaction data to ensure consistency. |
| National Tax Service (NTS) | Korea's official tax authority and source of truth for tax rules. | We used it to explain non-resident landlord tax obligations. We combined it with professional tax summaries for practical guidance. |
| PwC Tax Summaries (Korea) | Major professional reference continuously maintained and date-stamped. | We used it to explain withholding tax mechanics for non-residents. We triangulated it with NTS and BDO for accuracy. |
| AirDNA (Daegu Market Data) | Widely used STR data provider with transparent city-level metrics. | We used it to quantify occupancy, nightly rates, and listing counts. We treated it as the most reliable public STR data for Daegu. |
| Airbnb Responsible Hosting (Korea) | Platform's official compliance guidance for Korean hosts. | We used it to explain what Airbnb requires beyond just local law. We combined it with legal sources for a complete STR compliance picture. |
| Korea JoongAng Daily | Major national newspaper reporting on concrete policy changes. | We used it to document the 2025 business registration requirement. We treated it as evidence of enforcement direction, not the law itself. |
| Tourism Promotion Act (Korea Law) | Official national law database English text of the tourism act. | We used it to explain what business categories STR operators fall under. We combined it with platform rules for practical STR guidance. |
| OECD Economic Surveys: Korea 2024 | Top-tier international organization for macroeconomic context. | We used it to frame realistic expectations about Korea's housing market. We relied on it only for big-picture context, not local details. |
We have made this infographic to give you a quick and clear snapshot of the property market in South Korea. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
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