Growing demand for short-term accommodation
It says that with companies relying more than ever on short-term assignments, major cities which embrace the short-term rental model are in line to reap the economic benefits.
Knight Frank’s Global Cities: The 2016 Report highlights that short-term assignments are forecast to grow to over a fifth of all international relocations in the three years to 2017. Meanwhile long-term assignments are expected to fall from 52 per cent to 45 per cent over the same period.
However, supply of short-term rental accommodation is struggling to meet demand in many established markets and the situation is compounded by the fact that short-term lets often fall into a legal grey area. Against this background, those cities that embrace the short-term rental model stand to benefit in the future.
Tom Bill, head of London residential research at Knight Frank, said: “For investors and landlords, there are clear long-term rewards in the world of short-term rental accommodation. Cities that embrace the flexibility of models like serviced apartments will reap the economic rewards.”
The report shows that prices in St John’s Wood in London have increased by 11 per cent, followed by Marylebone (8.8 per cent) and Hyde Park (8.5 per cent).
Global Cities: The 2016 Report describes the three key types of short-term rental accommodation: serviced apartments, the private short-let market, and online innovations such as Airbnb.