Bucharest's booming short-term rental market reaches EUR 40 mln

Bucharest's short-term rental market has experienced significant growth, generating over EUR 40 million in revenues last year, according to the latest Crosspoint Real Estate Hotel Market Report.

By the end of 2024, the industry is projected to see a 25% year-on-year increase.

In 2023, the sector achieved revenues of EUR 41.3 million, nearly double the figures from 2019 and a 46% increase from 2022.

This impressive growth comes despite fewer listings compared to pre-pandemic levels, driven largely by a 60% rise in the average daily rate (ADR), which reached EUR 62.

With an average of 3,942 listings, property owners in Bucharest earned an average annual revenue of EUR 10,500, or EUR 875 monthly, with a 55% occupancy rate.

"If the growth in demand for short-term accommodation in 2022 was in part due to the wave of Ukrainian refugees, 2023 saw a return to typical market conditions with most guests being leisure and business travelers as the remaining refugees sought more permanent housing options," said Ilinca Timofte, Head of Research at Crosspoint Real Estate.

Geographically, there has been a notable shift in the distribution of short-term rental properties. Previously concentrated in the city center, listings are now more evenly spread throughout Bucharest. This trend reflects a broader availability of short-term accommodation options across the city.

Other Romanian cities are also showing strong performance in the short-term rental market. Brașov, for instance, slightly outperforms Bucharest with an average annual revenue of EUR 10,923 per property.

Meanwhile, Cluj-Napoca is the second-biggest market after Bucharest generating EUR 9.3 million in 2023, partly boosted by hosting major festivals like Electric Castle and Untold.

In contrast, cities like Iași and Timișoara are still emerging in this market, with fewer listings and lower revenues.

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