Summary of our market study

Since 2020, the real estate arbitrage market on Airbnb in Italy has faced significant challenges and transformations due to the impact of the COVID-19 pandemic. In 2020, there was a noticeable shift in tourist composition, with Italian tourists comprising over two-thirds (70.4%) of the segment as stringent measures affected international travel. The overall number of accommodations on Airbnb in key tourist cities like Rome and Milan was substantial in 2023, with Rome hosting 28,010 and Milan 24,180 facilities. Amidst a gradual decline in long-term rentals, there was a clear trend towards short-term rentals, with a prevalent rise in spending for short stay accommodations; Italian tourists' average expenditure for their entire trip increased by 17.3% from 2018 to 2022. Moreover, as of 2023, the age group 25-34 made up the largest portion (36%) of Airbnb bookings, reflecting a continued preference for short-term rentals among younger demographics. The market also witnessed legislative changes, with Italy introducing new tax regulations to govern the short-term rental segment effective from 2021 and EU-wide directives to monitor and report landlord data by 2023. Despite the complexities, including the necessity for adherence to the new legislative frameworks, the short-term rental market recovered from the pandemic downturn, with evident growth in tourist expenditure and a shift towards more flexible and unique accommodation experiences.

Evolving Trends in Italy's Airbnb Market

Italy’s Airbnb market has experienced various shifts over recent years, reflecting broader dynamics in the tourism and short-term rental sectors. Between 2018 and 2022, Italy saw a general downtrend in tourist spending on accommodation, with a notable dip occurring between 2019 and 2020 due to the pandemic's onset. However, the market showed resilience, with spending rebounding significantly, increasing by between 15% and 20% from 2020 to 2021 and over 100% between 2021 and 2022. The appeal of the Airbnb platform in Italy is evidently linked to the diversity and uniqueness of accommodations it offers, from rustic countryside villas to urban apartments. It caters to a broad demographic but shows a particularly strong correlation with younger travelers aged between 25 and 34 years, who represent roughly 35% to 40% of total bookings globally in 2023. Baby-boomers and individuals over 65 account for around 10% to 15% of bookings, underscoring the platform's popularity among a more youthful customer base. In terms of geographical demand within Italy, the Northeast, housing popular tourist regions such as Veneto and Trentino Alto Adige, draws the most visitors, with arrivals in accommodation establishments reaching nearly 50 million in 2022.

Following closely are the Northwest and Center regions, with Lombardy, Tuscany, and Lazio attracting significant numbers of tourists as well. In contrast, the South and Islands have fewer arrivals, with the South seeing between 10 and 15 million and the Islands around 5 to 10 million in 2022. Analyzing the market's structure, Rome emerges as the leader in Airbnb listings with over 25,000 properties, followed by Milan with around 20,000 to 25,000. Florence, Naples, and Venice also contribute sizeable shares to the market, with each city offering between 7,500 and 12,500 Airbnb facilities. Apartments are the most common type of listed property, accounting for approximately 70% to 80% of Airbnb offerings in the top five tourist destinations, with rooms and hotel rooms filling the remainder of shares. Interestingly, the long-term rental (LTR) market in Italy has seen a slight decline of around 1% from 2018 to 2022. This downshift aligns with the growing attraction to short-term rentals that offer higher returns to property owners and respond to the demand for flexible and.

Key Market Players in Italian Airbnb Rental Management

In the bustling world of Airbnb rentals, several companies have distinguished themselves as significant players in the Italian market. These companies have carved a niche for themselves by offering various services ranging from property management to unique guest experiences, catering to the diverse needs of property owners and travelers alike. Here’s an insight into some of the companies leading the charge in this dynamic industry.

  • IFflat: IFlat specializes in managing short- and medium-term rentals, focusing predominantly on vacation rentals in Rome. Their comprehensive services take the load off property owners, taking responsibility for everything from guest reception to property maintenance and marketing via various sales channels.
  • Welcome to Our Holiday Homes: This company curates an impressive collection of boutique hotels, bed and breakfasts, villas, and luxury holiday homes. With properties chosen for their unique design and architectural appeal, “Welcome to Our Holiday Homes” provides travelers with memorable and authentic experiences in various destinations.
  • Halldis: Halldis stands out as a property management veteran, offering rental services for a variety of accommodation types. Their end-to-end management approach, which has been refined since 1986, covers all aspects of property rental, ensuring a smooth operation for owners and a pleasant stay for guests.
  • WonderWhere to Stay:  As a dedicated portal for short- and medium-term housing rentals predominantly in Rome, WonderWhere to Stay offers a selection of apartments and villas in different city locales. They take pride in maintaining their properties to a high standard and providing guests with an excellent stay. 
  • Italianway: With a selection that ranges from urban apartments to countryside villas, Italianway has made a name for itself in short-term rental management across Italy. The company emphasizes authentic local experiences and upholds high standards for the properties under their care. 
  • Donato Easylife House: Founded by Donato Cella, this Milan-based company simplifies the short-term rental experience for both owners and guests. With properties in Milan, Paestum, Venice, and Rome, Donato Easylife House ensures optimum conditions for short stays including seamless booking, check-ins, and stay assistance. 
  • Cleanbnb House: A prominent name in short-term rental management in Italy, Cleanbnb House offers apartments and vacation homes intended for short stays. Their services are comprehensive, covering everything from property valuation to logistics, aimed at maximizing profitability for property owners.

 

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  • Last update : 27/12/2023
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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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Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

IFlat
Cleanbnb House
Halldis
Italianway
Wonderful Italy Campania
Mybnb (Italianway)
Mamo Florence
Istay
Views on Venice
Veniceapartament-Com

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