How short-term rentals have changed in Europe
It has been a record summer for the European real estate market, but with the onset of cold weather, short-term rentals have begun to slow down. Last month, the sector recorded 39.2 million requests from tourists to book rooms for overnight stays. That figure is 1.7 less than what was recorded in 2019, but it is 33.9 percent higher than the 2021 results.
Experts cite cautious sentiment among travelers as the main reason for the decline. People are increasingly feeling the economic woes and inflation, which is causing them to put off travel.
According to the analysis of AirDNA, the size of rents began to sag, which was the result of decreased demand. Meanwhile, prices are more than 25 percent higher than they were in 2019, but 0.1 lower than last year.
Despite the slowdown in the short-term rental sector, it is still showing a high occupancy rate of 61.4%. The value is nearly 3 percent higher than the 2019 results. The number of offers available to tourists is increasing – up about 16% from last year, but not yet reaching pre-pandemic levels.
The highest demand among European countries showed France, with Germany and Austria in second and third place. As for the growth in the number of offers, Norway is in the lead, followed by France and Poland.
As for the reservations, there is felt uncertainty among tourists due to the economic instability. Many have postponed their holidays for the next few months. Demand for bookings from December last year to March this year fell by almost 16%, compared with the figures for 2019. Despite the pandemic restrictions, 2021 saw 12% higher activity from lodgers over the same period. However, there are countries where demand for winter holidays exceeded the results of 2019 – Austria, France, and Finland.
Eurostat also provided an overview of the dynamics of prices in the residential real estate market over the past quarter. According to the report, from 2010 to the current period, rents in the EU increased by 18%, and the cost of housing increased by 48%. Compared to the same quarter last year, rents have risen by 1.7% and prices of apartments and houses have risen by almost 10%.
During the quarter, housing rose in 24 European countries and fell in price in three. An increase of 196% was recorded in the Estonian market and 168% in Hungary. Real estate got cheaper in Greece, Cyprus, and Italy. The leader in the increase in rental rates since 2010 is also Estonia, where rental rates rose by 214%. The size of rates fell in Greece and Cyprus.