Nights spent in Budapest via Airbnb increased by 35%, reaching almost 1.5 million last year according to published figures Wednesday by the real estate services company Colliers International.
Figures show there is a surge in demand for Airbnb despite a short dip in 2016 where the company’s popularity declined due to the oversaturated market and tourists less likely to rent.
However, Airbnb’s market share on overnight stays has skyrocketed in Budapest from 10.2% in 2016 to 14.3% in 2017, and as a result the market share has become one of the highest in the Hungarian capital, compared to other major European cities with 15.2%. in Paris, 13.2% in Barcelona, 11.7% in Amsterdam, 10.1% in Madrid, 6.9% in London and 6.5% in Berlin.
According to the report, downtown Budapest is still the most popular among tourists, with 69% of guests staying in the fifth, sixth and seventh districts. Budapest city center is followed in popularity by districts eight, nine, thirteen and one. Room rates in the central area are also higher than those in other less popular, non-central areas.
In the first 3 districts, most rental apartments compete with the prices of 3 and 4 star hotels. According to index.hu, in June 2017, the number of Airbnb apartments almost exceeded the capacity of hotels. However, according to experts, hotels need not worry too much as Airbnb is focusing on customers with longer stays.
However, the Hungarian Hotel Association (MSZSZ) and Hungarian National Tax and Customs Authority (NAV) complained about the company. In 2016, Hungarians generated six billion forints of income from homestays, far more than the turnover indicated by tax returns submitted to NAV. Some European cities, including Paris, strictly regulate selling rooms through Airbnb; Authorities in Amsterdam have announced that the city will ban Airbnb short-term rentals in busy areas. Due to Airbnb housing for only a few days, prices for long-term rentals have skyrocketed in Budapest at record speed over the past few years.
Almost two-thirds, or 65%, of Airbnb homestay providers in Budapest offer visitors more than two accommodations, according to the report. This is a much higher rate than in most other European cities, where the average number of multiple listings is 40-50%. The results also suggest that the Budapest market is driven by professional operators since 19.5% of Airbnb hosts have more than ten listings on the site.