Nights spent in Budapest via Airbnb rose by 35 percent, reaching almost 1.5 million in the last year according to figures released on Wednesday by real estate service company, Colliers International.
Figures show there is a strong increase in demand for Airbnb despite a short decrease in 2016 where the company’s popularity declined due to the oversaturated market and tourists being less likely to rent.
However, Airbnb’s market share of overnight stays soared in Budapest from 10.2% in 2016 to 14.3% in 2017, and, as a result, the market share became one of the highest in the Hungarian capital, compared to other major European cities with 15.2 percent in Paris, 13.2 percent in Barcelona, 11.7 percent in Amsterdam, 10.1 percent in Madrid, 6.9 percent in London and 6.5 percent in Berlin.
According to the report, downtown Budapest is still the most popular among tourists, with 69 percent of guests staying in the fifth, sixth and seventh districts. Downtown Budapest is followed in popularity by districts eight, nine, thirteen and one. The room rates in the central area are also higher than those in other less popular and non-central districts.
In the top 3 neighborhoods, most of the rental flats compete with the prices of 3 and 4-star hotels. According to index.hu, in June 2017 the number of Airbnb flats almost exceeded the capacity of hotels. However, according to experts, hotels don’t have too much to worry about because Airbnb focuses on guests with longer stays.
However, the Hungarian Hotel Association (MSZSZ) and Hungary’s National Tax and Customs Authority (NAV) have complained about the company. In 2016, Hungarians generated six billion forints of revenue from homestays – far more than the turnover indicated by tax returns submitted to NAV. Some European cities, including Paris, are strictly regulating selling rooms through Airbnb; authorities in Amsterdam announced the city will ban Airbnb short-term rentals in busy areas. Due to Airbnb’s housing for only a couple of days, long-term rental prices have skyrocketed in Budapest at a record speed over the last few years.
According to the report, almost two-thirds, or 65 percent, of Airbnb homestay providers in Budapest offer visitors more than two places to stay. This is a much higher rate than across most other European cities, where the average number of multi listers is 40-50 percent. The results also suggest that the market in Budapest is driven by professional operators as 19,5 percent of Airbnb hosts have more than ten listings on the site.
Colliers International expects that the Budapest Airbnb market will grow over the next few years as the tourism market is expanding in the country with more and more tourists visiting Budapest. However, while BBC named the Hungarian capital one of the most livable cities, according to statistical portal statista.com, Budapest is the fifth touristically overcrowded city in Europe behind Barcelona, Amsterdam, Venice and Milan.
via MTI, colliers.com, index.hu