If you’re lucky enough to own property in Wrocław, you may be pondering over whether to rent it out via AirBnB. So how does Wrocław stack up against other Polish cities?
The growth of average nightly rental income from AirBnB has essentially tripled from $31 in 2016 to $99 today. The return for the Wrocław apartment owner also significantly outstrips gains possible in Kraków or Warsaw.
We have checked AirBnB prices for the weekend of November 8th 2019, a period we believe is relatively quiet for visitors versus summer or public holiday periods. The average price per night for a stay in Wroclaw is around $99.
This compares favourably (for the property owner) to Krakow at $82 and Warsaw at $72. Of course, the number of apartments offered, city visitor numbers and so on all play a part too. That said, as a headline it’s a good indication that there is certainly room for participation growth.
Additionally, the actual cost of an apartment is cheaper in Wroclaw than in Krakow or Warsaw. Therefore the return is significantly better. We have looked at the average cost of buying a 45m² apartment in all three cities, concentrating on the secondary market only (who wants the hassle of a refurbishment if it can be avoided! ). From this we have assumed 80 % occupancy rates. This is actually lower than what has been reported, but we like to be conservative in our estimates.
Based on our research we believe the following chart is a good indication of the benefit of buying and AirBnB’ing an apartment in Wrocław as opposed to Kraków or Warsaw.
It is worth baring in mind that there are caveats all over this strategy (do you have the time to exchange keys, arrange cleaners etc? ), but as a starting point for exploring the possibility the numbers do seem rather convincing.
There are of course a lot of changes in how cities are treating AirBnB around the world, so you should also consider the possibility of increased taxes and/or regulation. If more supply comes on line we would also expect to see prices decrease. However, for the moment at least, it wouldn’t be the worst pension, salary enhancement or investment one could make in 2019.
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Disclaimer : The above is simply a result of the best and honest research by Team BigDoor24 and should not be considered a professional view on the future of Polish property.