Airbnb: Returns to top Athens areas – What research shows

After the big dip that occurred during 2020 due to the pandemic, which “froze” the hospitality sector, the short-term rental of real estate is recovering dynamically in the top areas of the center of Athens. In fact, according to data gathered by the Panhellenic Network E-Real Estates on behalf of “NEON”, from July 2021 onwards, a mass return and / or registration of new properties on short-term lease platforms is recorded.

Specifically, in the commercial triangle of Athens, which is also the stronghold of the short-term lease, the fluctuations of the registered real estate record great resilience in relation to all the areas of the center. In fact, in December 2021 a marginal increase was recorded (+ 0.20%), with the registered properties amounting to 1,017.

Among the areas that show particular mobility between the period July 2021 – December 2021 are Neos Kosmos, Thiseio and the area of ​​Kerameikos, where the largest percentage increase is recorded. On the other hand, areas such as Kolonaki, Pagrati, Exarchia, Neapolis and the Museum show a significant decrease.

According to the president of the Panhellenic Network of E-Real Estates, Themistoklis Bakas, many owners, especially in areas such as Kolonaki, Pagrati and / or on the outskirts of Exarcheia – Lycabettus, “preferred to rent the renovated and fully equipped apartments (50 sq.m. .m. – 60 sq.m.) to executives of companies that wanted furnished properties in the center of Athens for 12-24 months and / or to those who were looking for an apartment for a long-term contract “, reminding that” a large part of good real estate in the center of Athens returned to the conventional long-term lease both because of the high demand and because of the good rent they could get “.

The pandemic

The recovery of the short-term lease comes after a particularly traumatic year for the industry, where the remaining owners of real estate registered on platforms received the gratuitous shot with the first cases of the coronavirus in China, which constituted the largest percentage of their visitors. Cancellations by Chinese and Indians hit red. The largest percentage was managed by the owners themselves as natural persons, who did not join the support measures.

On the contrary, only the companies-legal entities for managing short-term leases were included in the support measures. Even the hope for some income within the first half of 2020 had evaporated.

The owners tried to gain as much occupancy as they could during the summer months by allying with the low price and flexible cancellation policy (unlocked bookings), in order to manage the loss as much as they could before deciding whether or not to stay in the sharing economy.

At the same time, many landlords, seeing the negative data of the tourist season as early as June 2020, had registered their properties at the same time and on an ad site, offering them for longer lease, expecting either the property to be leased for a longer period at the requested monthly rent. make a satisfactory income reservation through a short-term lease.

Prices sought

According to Mr. Bakas, they essentially wanted to maintain a waiting attitude for their return to short-term leases if the data changed. At the same time, most of the properties were available furnished, which for a bachelor, young couple and / or student, renting a furnished property does not always meet their needs.

As the president of the Panhellenic Network E-Real Estates explains, the reason that the owners of short-term rental properties had them furnished is the fact that otherwise they would have to rent a warehouse for the storage of equipment and furniture, therefore, an additional monthly cost which should be borne. While renting furnished venues, they could ask for a higher monthly rent and at the same time not have to bear the cost of maintenance themselves.

The monthly rent

At the same time, the owners with the initial requested rental prices had essentially “identified” the monthly rent-income from the traditional long-term leases with the income from the short-term leases, two data that can not be compared and at the same time identified.

Landlords did not want to, could not realize the difference between the two types of rent – short-term rentals “requires” the active participation of the landlord – his personal work (cleaning the property, towels, sheets, various works on the property, arrival and departure process of each visitor), in contrast to traditional leases where the monthly rent is real income without personal work and monthly operating expenses (Internet, utilities, electricity, water, etc.).

A large number of landlords realized that the initial rental conditions of their property (monthly rent, rental period) did not ultimately meet the desired response from long-term tenants, leaving their incomes at zero all this time.

Due to the above data, several landlords decided to voluntarily reduce the requested monthly rents and at the same time increase the lease term to 3 years, which is legally the shortest duration of residential lease.