Airbnb in Warsaw
Airbnb in Warsaw
Many of the sharing economy platforms bring both benefits and new social challenges. This is also the case with the short-term rental market, which expands the offer for tourists and provides opportunities for city residents to earn money. However, the rapid growth of the platform can lead to various problems: higher housing prices for local residents, uncontrolled growth of tourism in certain areas, and negative impact on the hotel sector.
RESEARCH METHODS AND DATA
INTERACTIVE MAP OF AIRBNB OFFERS IN WARSAW:
APRIL 2019
Colors based on professionalism:
Blue: Single-listing (hosted listing with one listing)
Black: Listings owned by the host with 2-3 listings
Red: Listings owned by a host with at least 4 listings
MAIN FINDINGS FROM THE STUDY
IN WARSAW, OFFERS POSTED BY PROFESSIONAL HOSTS DOMINATE
Among the nearly 5,5 thousand Airbnb listings in Warsaw, as many as 57% are places where hosts have four or more apartments on the platform. This is evidence of the high level of professionalism of short-term rentals in Warsaw.
AIRBNB OFFERS IN WARSAW BY NUMBER OF OFFERS BY ONE HOST
SPATIAL DISTRIBUTION OF OFFERS IN RELATION TO TOURIST ATTRACTIONS
OFFERS ARE NOT EVENLY DISTRIBUTED ACROSS THE DISTRICTS
The geographical distribution of Airbnb listings in Warsaw shows that they are concentrated in two districts: Śródmieście and Wola. The listings listed on Airbnb are located near the most popular tourist attractions in Warsaw and along the metro line.
IN THE CITY CENTER, EVERY TWENTIETH APARTMENT WAS ON AIRBNB AT LEAST FOR A MOMENT IN 2018
Among all the apartment listings on Airbnb in Warsaw, almost half are apartments in Śródmieście, and almost 20% are apartments in Wola. A comparison of AirDNA data with data from the Central Statistical Office on the number of apartments in specific districts of Warsaw allows us to state that as many as every twentieth apartment in Śródmieście was listed on Airbnb at least for a moment in 2018.
NUMBER OF UNIQUE AIRBNB OFFERS PER 100 APARTMENTS IN 2018
SHARE OF 'TOP' HOSTS IN PLACES, BOOKINGS AND REVENUE IN 2018
TOP 5% OF HOSTS ACCOUNT FOR MORE THAN HALF OF BOOKINGS AND MORE THAN 60% OF REVENUE
For listings active on Airbnb for 12 months, the median annual income is PLN 22, while the average is over PLN 27. At the same time, we can observe a high concentration of income among a small group of hosts: 5% of hosts were responsible for about 30% of places offered, about 56% of reservations and 60% of revenues during this period.
THERE IS MORE COMPETITION BETWEEN HOTELS AND AIRBNB ON WEEKENDS
Airbnb prices are lower than those of hotels, especially during the week, while the difference decreases on weekends. This suggests that while hotels are focused on business customers on weekdays, they compete with Airbnb for tourists coming to Warsaw on weekends.
PRICES FOR TWO PEOPLE ON BOOKING.COM: BIG DROPS IN HOTEL PRICES DURING WEEKENDS (FROM PLN 1026 TO PLN 718)
CHEAPER HOTELS THAN AIRBNB: ONLY OUTSIDE THE CITY CENTER AND BUSINESS CENTERS
COMPETITION IS NOT EQUAL IN ALL WARSAW DISTRICTS
Hotels are significantly more expensive in the city center (about 80% higher prices than Airbnb), while in several districts further from the city center, hotels are more affordable. It is also worth noting that weekend hotel price reductions are higher in districts with more Airbnb listings. This suggests a link between the presence of Airbnb listings and the hotel sector, which must react to the emergence of competition.
MOST OF THE AIRBNB LISTINGS THAT EARN MORE THAN TRADITIONAL RENTALS ARE PROFESSIONAL LISTINGS OF FULL APARTMENTS, MADE AVAILABLE FOR ALMOST THE WHOLE YEAR
Half of the apartments rented through Airbnb in Wola and Śródmieście earn more than a year's rent for a one-room apartment through traditional means. In the case of 2-room apartments, higher earnings apply to 47% of Airbnb listings in Wola and 40% in Śródmieście.
ANNUAL INCOME HIGHER THAN… (BY TYPE OF HOST)
AIRBNB DENSITY (BAR) AND PRIMARY MARKET PRICES
THE NUMBER OF AIRBNB OFFERS AFFECTS APARTMENT PRICES ON THE SECONDARY MARKET
The number of Airbnb listings in relation to the number of apartments has an impact on the prices of properties on the secondary market: if the density of Airbnbs in Żoliborz increased to the level in Wola, the price of apartments would increase by about 5-6%. Additionally, prices on the primary market are strongly interdependent on the density of Airbnbs.
LIMITING THE POSSIBLE AVAILABILITY OF AIRBNB LISTINGS TO 90 DAYS A YEAR WOULD AFFECT MOST OF THE LISTINGS
This type of change would primarily affect listings in the City Centre. It is worth remembering, however, that hosts could limit the number of nights offered instead of reducing the listings themselves. This could mean that some apartments would be bought for rent anyway, but would remain empty for a significant part of the year.
AIRBNB OFFERS (PER 100 APARTMENTS) THAT WOULD BE LIMITED TO 90 DAYS A YEAR FOR RENTAL
