In August, demand for European short-term leasings typically peaks, and 2021 did not disappoint.
NB: This is an article from AirDNA
We tracked more than 42.3 million nights offered in August 2021, which was the greatest number of noting nights offered since the start of the pandemic. Still though, it was 21.0% lower than 2019 levels, but 16.5% higher than August 2020. The reduction is a considerable improvement from the -45.5% loss signed up back in April 2021.
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The healing in need has actually differed significantly over the previous 18 months. While cross border traffic has stayed at a portion of 2019 levels, those countries that were able to generate significant domestic demand have carried out substantially better than those nations that have actually generally counted on international demand.
Domestic Tourism Driving Recovery
In August 2021, only Russia was able create sufficient demand to surpass 2019 levels while Germany and France were less than 10% below 2019 levels. While countries like Hungary, the Czech Republic and Ireland have a few of the most affordable demand development figures for the month, each has enhanced significantly considering that earlier in the year when their need was down more than 70%.
The chart above shows each European nations share of short-term rental need that was domestic, i.e. a stay in France by someone from France, compared to that nations year-to-date healing in need. Countries like Russia, France, and the United Kingdom all had more than 50% of their short-term rental demand generated by domestic travellers and have actually carried out fairly well throughout the first half of 2021. On the other hand, cross-border traffic accounted for more than 90% of total need in Portugal, Hungary, and the Czech Republic and those nations have struggled to generate anywhere near the demand levels they saw in 2019.
Supply Losses After Low Demand
Tenancy Reaches Record Highs.
Low need highly associates with listings leaving the marketplace, as owners choose not to offer their homes for rental even in the traditional high season. As of August, Europe had lost as much as 20% of its active listings on Airbnb and/or Vrbo compared to the exact same time in 2019. The total number of available listings in Europe reached 2.7 million in August which was roughly the very same level as was listed in 2020..
Still though, it was 21.0% lower than 2019 levels, but 16.5% higher than August 2020. Countries like Russia, France, and the United Kingdom all had more than 50% of their short-term rental need generated by domestic tourists and have actually performed relatively well during the first half of 2021. In contrast, cross-border traffic accounted for more than 90% of overall demand in Portugal, Hungary, and the Czech Republic and those countries have actually struggled to generate anywhere close to the need levels they saw in 2019.
Find out more from AirDNA.
The typical daily rate (ADR) that a visitor spent for a short-term leasing in August 2021 increased to 15.5% greater than August 2019 and 9.2% greater than August 2020. The greater rates originate from a range of elements consisting of stronger demand for larger and luxury units in higher-priced destination markets in addition to slightly greater rates being charged by hosts in high need markets..
As of August, Europe had actually lost as much as 20% of its active listings on Airbnb and/or Vrbo compared to the very same time in 2019. 6 of the 20 biggest nations in Europe reached an occupancy of greater than 75% including Germany (79.1%), Croatia (79.1%), Netherlands (77.6%), United Kingdom (75.7%), France (75.4%) and Portugal (75.3%).
While reserved short-term rental demand, since September, for stays in September– November is still about 19% lower than at the same point in 2019, its substantially better than in 2020 and trending in a favorable direction. With new COVID-19 cases decreasing and non-urban domestic demand extending even more into the autumn shoulder season, demand for both Germany and the United Kingdom is predicted to come in well above 2019 levels over the next few months.
These aspects were strong enough to press the average rate greater in all nations in August. The greatest ADR growth was in the United Kingdom (+32.6%) while the least expensive gains were in Russia at 5.6%..
Autumn/Winter Outlook.
The absence of supply and high need in numerous location markets suggested that tenancy rates were high, as what little supply there was got booked up rapidly. This led European short-term rental occupancy to an all-time record high of 73.6% in August 2021. This was 6.1% higher than 2019 and 13.6% greater than 2020. 6 of the 20 largest countries in Europe reached a tenancy of greater than 75% consisting of Germany (79.1%), Croatia (79.1%), Netherlands (77.6%), United Kingdom (75.7%), France (75.4%) and Portugal (75.3%).
The loss of listings has been primarily focused in the largest European cities. Of the 20 largest cities for short-term rentals in Europe, five cities have actually lost more than 50% of their readily available supply including Prague ( -58%), Edinburgh ( -56%), Budapest ( -55%), Amsterdam ( -55%) and Moscow ( -53%). Saint Petersburg, RU (-14%) has retained the highest percentage of its supply of the major cities mainly since of the strong levels of need in Russia throughout the recovery duration. Cannes in the south of France has likewise performed relatively well, as a seaside resort destination, and only lost about 24% of its available listings.
