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Summary and extracts
1 Synthèse du marché
1.1 Introduction
Real estate arbitrage on Airbnb is the practice of renting properties on a long-term basis and then making them available as vacation rentals on Airbnb in order to make a profit through the difference between the rental fee and the temporary rental income. Market offerings can include apartments, houses, and single rooms rented on a short-term basis as accommodations for tourists and travelers.
Some of the advantages and disadvantages of this practice that are analyzed are[Awning]:
Advantages:
- No need to purchase a property, thus avoiding the cost and commitment associated with buying a property.
- Greater flexibility, as it is possible to discontinue hosting on Airbnb without having to sell a property.
- Low long-term risks, as there is no long-term commitment or monthly mortgage payment.
- Quick entry into real estate, with the ability to start earning money in just a few weeks.
- Easy way to earn money from real estate, avoiding mortgage search, hiring a real estate agent or paying closing costs.
- Opportunity to learn in real estate without making a long-term commitment.
Disadvantages:
- Limitations in furnishing and improvement options, as owner permission must be obtained to make changes to the property.
- Absence of long-term appreciation in the value of the property, as the property is not one's own.
- Possible problems with the property owner due to wear and tear caused by short-term guests. it is important to have a prior agreement with the owner and take care of any damage to the property.
The key players in the market are mainly property owners, investors, property managers , and hospitality professionals who exploit this strategy for financial returns.
This study focuses on the analysis and trends of the real estate arbitrage market on Airbnb in Italy. In particular, contexts in the top 5 tourist destinations in Italy-Rome, Milan, Naples, Florence, and Venice-will be analyzed. For information on complementary markets, such as short-term rentals or real estate development, please refer to the specific studies available in the Businesscoot catalog.
1.2 The global market
In ****, the global short-term rental market for tourism purposes reached a total value of $***.** billion. The growing demand toward this type of accommodation leads to forecasting a compound annual growth rate (***) of **.* percent between **** and ****. At the end of the period, the global short-term rental market for tourism purposes is estimated ...
1.3 The Italian market
In Italy, between **** and ****, total tourist spending on accommodation during the vacation season appears to be slightly decreasing (***) as a result of the outbreak of the pandemic in ****. In contrast, starting in ****, total spending returns to growth: +**.*% between **** and **** and +***.*% between **** and ****. Total tourist spending on accommodation Italy, ****-****, in billions ...
1.4 The consequences of the Russian-Ukrainian conflict
the outbreak of the Russian-Ukrainian conflict in February **** resulted in, among other things, a general increase in the consumer price index. The housing services sector appears to be one of the most affected by the consequences of the conflict. Between January **** and November ****, the consumer price index for housing services rose ...
2 Analyse de la demande
2.1 Demand in Italy
In order to analyze the demand for short-term rentals through the Airbnb platform in Italy, the total number of arrivals and attendance in accommodation establishments, the average expenditure of Italians on accommodation services, and the breakdown of foreign tourists' expenditure by type of destination are considered.
Considering the total number of ...
2.2 Demand drivers
The main drivers driving demand for private accommodation facilities include:
Diversity and uniqueness of accommodations: Airbnb offers a wide range of unique options, from cozy apartments to luxurious villas, allowing for different experiences than standard hotels. Affordability: accommodations on Airbnb are often more affordable, especially for groups or extended stays, due ...
2.3 Geographical distribution of demand
In order to visualize the geographic distribution of demand, a map was created with the number of arrivals in accommodation establishments in Italy in **** for each macro-region.
The Northeast collects the highest number of tourists: there are **.* million arrivals in accommodation facilities in this area in ****, thanks mainly to data recorded ...
3 Structure du marché
3.1 The market structure
In order to analyze the structure of the short-term rental market realized through the Airbnb platform, the total number of facilities in the top * tourist destinations in Italy, the types of facilities available, and the number of facilities managed by hosts are taken into consideration.
In ****, Rome collects the highest number ...
3.2 Long-term rentals (LTR)
Analyzing the long-term rental market in Italy, between **** and ****, the total number of homes placed for rent appears to be decreasing. During the period, the total number of housing units rented out for residential purposes decreased from ***,*** to ***,***, marking a decline of *.* percent. As of ****, the decline appears to be steady ...
3.3 The main actors
The following is a list of Airbnb hosts with the highest number of managed facilities in each city analyzed:
Rome
IFlat: The company specializes in managing short- and medium-term rentals, mainly for vacation rentals in Rome. They offer comprehensive services to property owners, including reception, housekeeping, **/* assistance, reservations, decorating and home ...
4 Analyse de l'offre
4.1 The offer
Short-term rentals
Short-term renting or temporary renting is defined as a mode of house management opposed to traditional rentals, which have rather strict time constraints on landlords. This mode of management allows the home (***) to be given for use for limited periods, shorter than the minimum four years of the rent-free ...
4.2 The prices
Short-term rentals
Analyzing the average price per night within the properties on Airbnb in the top * Italian tourist destinations, Venice comes out as the most expensive destination for tourists, with an average of ***.* euros per night. This is followed by Florence and Rome, where people pay an average of ***.* euros and ...
4.3 New supply trends: entering the long-term rental market
From ****, the company specializing in short-term rentals plans to expand its experiences and services. In particular, through the words of Brian Chesky, Airbnb's CEO, the company's intention to expand into the long-term rental market is clear.(***)
5 Règlementation
5.1 The legislation
Short-term rentals
Decree Law of **/**/****, No. **: Article * of the Decree Law regulates the tax regime of short leases. Law of Dec. **, ****, No. ***: filled a legislative loophole by providing that the tax regime of short leases, effective from the tax period relating to the year ****, is recognized only in the case of ...
6.1 Segmentation
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The airbnb rental arbitrage market | Italy
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