“Like in many other cities, the increasing popularity of Airbnb and other home rental platforms have also caused political tension in Berlin.” said Dirk Bakker, Head of EMEA Hotels for Colliers International.  “As a result of the housing shortage, Berlin has restricted the use of Airbnb by prohibiting to offer entire homes or apartments on the platform. Despite the new regulations coming into effect May 2016, they did little to dampen demand.”

The report analyses Airbnb activity in Berlin and considers how the accommodation rental website is performing across the city. The majority of guests stayed in three districts: Friedrich-Kreuzberg, Pankow and Mitte. Together, these districts accounted for 60 per cent of all overnight stays in 2016. Claims that Airbnb spreads guests throughout the city, are therefore questioned.

Andreas Erben, Head of Hotels in Germany added: “In the long-term, Airbnb will become more established in the tourist market to develop into an online travel agency like other online platforms too. The apartments which are offered by Airbnb are currently in a semi-professional sector. We will have to see if this model is durable and whether it will be possible to continue to earn money on the platform.”

The report shows that in total, Airbnb recorded 1,735,000 overnight stays in Berlin throughout 2016 and has seen the Average Daily Rate (ADR) decline five per cent year-on-year to €62 per night, compared to €96 for hotels in Berlin.

A shift in demand is noted for specific unit types, as well as increased Average Daily Rates (ADR) per unit type. As a reaction to the ban, hosts have increased their average rates for entire homes, to compensate for fines they are risking. We see a significant increase in ADRs per unit type as of May 2016, indicating that hosts incorporate the risk in their pricing strategies.

Jeroen Oskam, Head of Research at the Hotelschool The Hague, adds: “The shift in demand for specific room types is an important indication of what consumers require. Even though it has become more difficult for travellers to reserve an entire home through Airbnb, they are still booking through the site and are settling for private rooms. This demonstrates that the motivations for guests to stay in an Airbnb location are diverse and it will be interesting and important to watch this trend over the coming year.”