In Europe, short-term rental capacity is at pre-pandemic levels.
Airdna brought fantastic news! The short-term rental demand in Europe had a strong first quarter and 2023 looks just bright with a significant increase in the number of nights stayed.
Compared to January 2022, there was an 18.1% increase in demand, and a substantial 28% increase compared to 2019.
This extended seasonality led to a 5% increase in occupancy from last year and a 6% increase above pre-pandemic levels.
Of the top 20 countries, 14 experienced an increase in occupancy, with Portugal, where we were born, with a +19.8% YOY, Austria +16.9%, Czechia +12%, and Greece +10.4% seeing the highest growth.
For the first time since the pandemic began, the available supply of short-term rentals in Europe exceeded 2019 levels, with 4.7% more properties available in January than in January 2019.
The not-so-great
On the other hand, Croatia, Denmark Sweden, Hungary, Switzerland, and the United Kingdom occupancy levels saw a decline in occupancy levels.
However, these countries still had higher demand compared to the previous year.
The growth in available listing nights in these nations exceeded the growth in demand, leading to lower occupancy levels.
This increase in available listing nights signals a recovery toward typical occupancy rates after a period of reduced supply due to the pandemic.
Is it possible for the fastest-growing real estate type in Europe to sustain this?
The four real estate categories
Since January 2019, there has been a shift in the market share of the four real estate categories, with House/Villas and Unique Stays gaining 2.6% and 0.7%, respectively, while Apt/Condo/Lofts and B&Bs have each lost 2.9% and 0.4%.
This change can be attributed to shifting traveler preferences in the post-pandemic era. Apt/Condo/Lofts, which are predominantly located in urban areas, have yet to fully recover from the pandemic in terms of supply, while more options outside of urban areas have emerged, leading to a decline in their market share.
On the other hand, Houses/Villas and Unique Stays have become increasingly popular due to their more experiential, spacious, and private accommodations, resulting in their market share growth.
Finally, B&Bs, which typically involve sharing common areas with other guests, have seen a 0.4% decline in market share as they have become less desirable during the pandemic era.
This positive trend is expected to continue in the coming months, providing continued benefits to those involved in managing vacation rental properties.
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