For the first time since the COVID-19 pandemic, Q3 2024 occupancy rates in Mexico City have exceeded those of previous years, reversing the downward trend that characterized the market in recent times. This improvement is attributed to a steady growth in demand combined with a decrease in active rental listings, resulting in a more balanced market. With the upcoming Airbnb regulations likely to reduce supply even further, this trend is expected to continue, benefiting both occupancy rates and revenue.
In Q3 2024, Mexico City’s short-term rental market witnessed a positive shift as occupancy rates surpassed those of the previous years for the first time since COVID. The growth in demand, alongside a notable reduction in the number of active listings, has created a more favorable balance between supply and demand. This shift has boosted overall market performance, with fewer properties on the market translating into higher occupancy and stronger revenues for those still listed.
Naya Homes continued to outperform the market in both revenue and occupancy throughout the last quarter. Additionally, we are taking legal action to protect our property owners by filing an “Amparo” against the new Airbnb regulations in Mexico City, which we view as a threat to private property rights.
Supply: As predicted in previous reports, active listings fell by -10% year-over-year in September 2024. This reduction has led to a more balanced market, allowing occupancy rates to surpass last year’s levels and driving up revenue for property owners.
Demand: The number of nights reserved declined by -3% year-over-year, but overall occupancy rates improved due to the drop in supply being greater than the decline in demand. As a result, the remaining properties have enjoyed higher booking levels.
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