Daily rental market generated €45.5 million in revenue for January-September 2023, just from properties listed on the AirBnb platform.

Number of daily rental properties on Booking and AirBnb in September reached 24,902.

By July, according to Tax data, 3,318 structures were registered. However, the rapid expansion of the sector is increasing long-term rental prices and is "hitting" the hotel industry as well, while it risks becoming worthless, since due to the high supply, daily rentals are dropping significantly.

Taxes Directorate has taken the initiative to formalize daily renting.

The activity of providing apartments for daily rent is becoming more and more in demand from year to year. The number of accommodation structures in the short-term rental market increased significantly throughout 2023.

High demand, especially from foreign tourists, and prices many times lower than hotels, according to real estate agents, are the main factors influencing the flourishing of this sector.

The coastal areas where this business model originated this year saw an increase in demand for daily rental apartments during the summer period.

The high influx of foreign tourists and the long-term prospect of increasing their numbers has prompted many apartment owners to turn their properties into daily rental businesses, or to buy or rent properties for this purpose. purpose, risking the creation of an oversupply in the daily rental market.

According to real estate experts, the market is already oversupplied and this has forced many of the owners to reduce prices to many times lower rates compared to the daily rental prices of some of the European cities.

In September 2023, the number of daily rental structures on the two international platforms Booking (according to "Monitor" research) and AirBnb (according to AirDNA data that analyzes statistics for daily rental structures on the Airbnb platform) reached 24,902 apartments/apartments .

The number of listed properties available for the month of September 2023, according to AirDNA data for the AirBnb platform, made public to "Monitor" was 15,512 properties.

Compared to September 2022, properties listed for rent increased by 25%. The supply of daily rental properties remained high in September 2023, compared to the decline experienced after the summer of 2019. Available properties in September increased by 120% compared to September before the pandemic.

One of the main factors that favorably affected the demand for short-term rentals this year, according to real estate market experts, is the increase in the flow of tourists visiting Albania.

As a result, this also led to an increase in properties registered on online platforms that connect apartment owners with tenants.

The revenues from the short-term rental market in Albania in the months of January-September 2023 are estimated at around 45.5 million euros (calculated according to the average daily rate ADR multiplied by the demand for nights of stay, based on the data made available by AirDNA for the platform only Airbnb).

Compared to the same period in 2022, revenue generated from apartments and houses rented out on AirBnb increased by 81%. The expansion of income started after the Covid-19 pandemic. In 2021, revenue increased by 14% compared to 2019. It peaked further for January-September 2023, which increased 2.2 times more than the same period in 2019.

Rental income (RevPar) for the month of September on AirBnb reached 6 million euros. Compared to September 2022, rental income has doubled.

(Source: Monitor)