From Daily to Long-term Rentals - Changes in the Real Estate Market

Due to coronavirus outbreak, the Airbnb market will be the most affected among other accommodation facilities.

Evaluated by recov.ge, in order to repay the loan obligations on time, the owners of the residential real estate may need to switch from a daily to a long-term rental model.

The main challenge for hotels is the demand in the market, which is significantly reduced.

"Hotels will have to respond to the difficulties caused by a decreased amount of visitors and continue to work in certain circumstances as a result of the pandemic. They must ensure the provision of sanitary forms. A consequential decrease in the average cost of the rooms is expected, indeed. This period will be quite difficult for both local and independent middle-class brands since they will have to compete with international brands for price competition.", reports recov.ge.

The report also states, that in the terms of the pandemic, hotels may be looking for alternative temporary functions, such as redevelopment as flexible workplaces. Precedents like this already appeared in the European hotels, where hotel rooms are rented for workspace purposes.