The growth rate of "tourist apartments" is slowing down
Now that the year is ending, it is a good time to take stock and see how the market for tourist apartments in the city of Valencia has evolved. From a tourism point of view, 2017 has been another year of record highs across the whole region, and the city of Valencia was no exception.
As we have been seeing throughout the year, the number of tourist accommodations that have been advertised on Airbnb has been increasing until reaching a maximum of 4,767 new properties in 2017 (data up to the first week of December), which means an increase of 17% compared with 2016.
However, despite this increase, if we analyze the evolution by quarter, we see that the growth is due to the strong increase in the first 2 quarters of the year, since the pace at which new apartments are created has slowed markedly in the last quarters of the year, especially compared with the initial trend. At least that is what can be inferred from the analysis of the database of the leading portal for tourist accommodation, for the city of Valencia.
Analysis by district:
If we carry out a more detailed study by district, we see that, as last year, the districts that grow the most in advertised properties are the districts preferred by tourists: Ciutat Vella, Poblats Marítims, and L'Eixample. In percentage terms, the district that grows the most compared with 2016 is Poblats Marítims, and the current investment fever in this district has meant that in absolute terms, Poblats Marítims is now the second district with the most advertised properties, behind only Ciutat Vella. In this way, L'Eixample is relegated to third place as the district with the most advertised properties.
From a percentage point of view, we see that the Ciutat Vella district, despite being the district with the most new listings, loses weight overall, mainly due to the strong boom that "Poblats Marítims" has experienced, as we have pointed out.
Total number of properties advertised on Airbnb by district and type: evolution.
If we analyze the evolution of the type of listings, we see that in 2017, the appearance of new listings of entire properties has lost strength compared with the appearance of listings of private rooms in shared apartments.
If we carry out this same analysis by district, we can observe that there are clearly neighborhoods where listings of entire apartments are growing in percentage terms (Ciutat Vella and Poblats Marítims) and districts where the creation of listings of private rooms in shared apartments predominates (Benimaclet, Rascanya, Jesús, the Plà del Real, etc.).
We will have to keep an eye on the future evolution of these types of variables and assess the reasons for this slowdown in the creation of newly advertised properties. At Brickstarter we already announced that there are certain types of apartments that have been suffering from the current oversupply, and now more than ever it is necessary to carry out a good market study before making decisions.
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