Nayarit Airbnb Insights | 2024

The Riviera Nayarit has been gaining prestige over the past few years as a tourist destination with beautiful beaches, luxurious accommodations, water activities, and ecotourism. The short-term rental industry in the Riviera Nayarit has experienced ups and downs. If you are curious about the market landscape, what we observed in the last quarter of 2023, and the Airbnb insights in Nayarit for 2024, please refer to our full report below.

The Numbers: What’s Happening in Riviera Nayarit?

During the last quarter of 2023, there was a significant 20% reduction in the occupancy of the short-term rental market in the Riviera Nayarit compared to the same period of the previous year (2022), marking a decrease of 16% in monthly revenues. This decline can be primarily attributed to the introduction of new units in the bay, leading to a substantial 22% increase in available inventory year over year. The expansion of inventory has had a notable impact on the market dynamics, creating increased competition among properties and consequently resulting in a decline in occupancy levels and generated revenues.

Market Factors: Supply and Demand

In the realm of supply in the short-term rental market, a significant shift was evident during the last quarter. Despite the observed stability in the monthly number of active units, there was a noteworthy 22% growth compared to the same period of the previous year. This year-over-year increase signals a continuous expansion in the availability of properties for rent, suggesting a robust dynamic in the temporary accommodation supply.

Regarding demand, there was an upward trend in the number of days reserved during the last quarter of 2023. However, this trend is not as pronounced as the notable increase in supply, shedding light on the lower occupancy rates experienced in the same period.

Although the increase in demand is evident, its pace has not been as rapid as the growth observed in the availability of units. This discrepancy between supply and demand may be a key factor in the decline of occupancy rates, as the surplus availability might not be fully absorbed by the existing demand.

Forecast: What Lies Ahead

• It is anticipated that occupancy during the period from January to March will experience a decrease compared to the same period in 2023, especially in cities that have undergone significant real estate expansion, such as Bucerias.
  
• This reduction in occupancy is attributed to various factors, including aggressive real estate expansion leading to an increase in the supply of available properties. The expansion of options for consumers has heightened price sensitivity, as competition among properties has intensified. Additionally, a decrease in demand for units not located beachfront is expected, contributing to the decline in occupancy rates.
  
• In response to this changing market dynamic, a decrease in market prices is forecasted, especially for units without beachfront locations. This price reduction is expected due to lower occupancy and a greater supply of properties, marking an adjustment in the market that reflects consumer preferences and current conditions in the short-term rental sector in these specific areas.