Homeowners     25 Jan 2024

Mexico City Airbnb Insights | 2024

"With its unique blend of history, culture, gastronomy, and entertainment, Mexico City stands out as one of the main tourist destinations in the country. However, like any prosperous destination, the short-term rental industry in Mexico City has experienced its 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 Mexico City for 2024.

Naya Homes vacation rental in Mexico City

The Numbers: What's Happening in Mexico City?

Mexico City is experiencing a notable recovery in demand, especially regarding bookings for temporary accommodations, which are reaching levels comparable to those pre-dating the COVID-19 pandemic. There is an impressive annual growth of 27%, indicating a clear trend toward the normalization of activities and visitors' confidence in the destination.

However, this resurgence in demand is not reflected equally in the supply, as active listings are experiencing an extraordinary annual increase of 37%. This imbalance between growing demand and rapidly expanding supply has created a situation where both prices and occupancy are experiencing a decline compared to the same period of the previous year.

Market Factors: Supply and Demand

The supply in the short-term rental market in CDMX continues to exhibit a clear upward trend in the presence of active listings, although there has been a recent deceleration in this ascending pace. The data reveals a notable year-over-year growth, with a +37% increase in the number of active listings.Despite the recent slowdown, this significant increase indicates a continuous expansion and dynamism in the short-term rental sector.

Demand: According to information provided by the Department of Tourism, tourist demand shows encouraging signs of recovery. Overall, tourist influx has experienced a growth of 10%, indicating a gradual reactivation of the industry. This increase is even more pronounced in the realm of reserved nights, where an impressive growth of 28% is recorded, suggesting renewed interest and confidence from visitors.Despite these positive advances, international tourism has faced certain adversities, reflected in a -4% decrease. This mixed scenario underscores the importance of strategically addressing disparities between domestic and international tourist demand.

Sources: Internal Data, Transparent, Wheelhouse, AirDNA

Forecast: What Lies Ahead

  • A deceleration is projected in the short-term rental supply in Mexico City, attributed to a decline in monthly revenues, registering a -2% decrease in year-over-year terms.
  • This challenging economic scenario is leading property owners to explore alternative income sources, with long-term rentals being an attractive option.
  • The anticipation of new regulations by mid-2024 in the vacation rental sector has generated a particular interest in aspects related to security and data management. In this context, Naya Homes is playing a proactive role by actively collaborating with the Short-Term Rental Owners Association (APAR) and regulators, seeking to positively influence the legislative process.
dots

Contact us to learn more

Fill out the form to set up an appointment with one of our property management experts.

contact-us-image