The holiday villa rental market has been booming in recent years with the advent of Airbnb. While Europe and North America are leading this trend, the Asia-Pacific market is also growing strongly. More and more Europeans are renting a villa for their holidays in Thailand, Bali or Sri Lanka… But is it a trend or just a fashion trend?
Villa rentals are becoming increasingly popular
The villa rental market in Asia-Pacific is worth $390 million, in a global holiday rental market estimated at $120 billion. The specialist in the rental of villas in Asia, www.villa-finder.com estimates that there are currently 9,000 villas for rent in the region. By way of comparison, this represents only about three quarters of the total number of properties available for full-time rental in Paris. It is clear that supply will continue to grow.
[1]Double-digit growth
The rental of villas, as well as the entire holiday rental market in Asia, is growing at an annual rate of 18.3% (Statista). In addition to existing markets such as Bali, Koh Samui and Phuket, the supply of villas is expanding throughout the region.
More and more investors come and build villas, either for a return or to prepare their retirement.
Investors can be private individuals, but also large tourist or real estate groups developing villas to meet demand. Countries like Vietnam, Myanmar, Laos, China and India are developing a significant offering to meet customer demand for a more unique travel experience, according to David Chambat, CEO of Villa-Finder.com.
The villa rental market in Thailand is important
[2]Say Richie Lopez, general manager of White Rose Samui : » In Thailand, competition is becoming fierce, which, I think, will lead to lower prices, which will mean more bookings. The key country is China. This will be THE market for the next 5 years « .
The offers are plethoric as well in Bangkok as in Phuket, Pattaya but also on most islands like Krabi or Samui.
Villa rental in Sri Lanka brings you closer to local life
While Sri Lanka continues to build large hotels, many customers prefer small luxury hotels or luxury villas. The market is growing because professionals have understood that customers prefer more personalized offers and especially to better appreciate local life.
According to Jack Eden, CEO of Eden Villas in Galle » investors and professionals are looking for alternative accommodation options for their clients « .
Villa rental in Asia is different
The villa rental market in Asia-Pacific is slightly different than in other regions. Indeed, most « holiday homes » systematically offer staff available. There will of course be cleaning staff but also the possibility of having a cook to test local dishes.
[3]Rental prices are very variable
The average price of the villas varies according to the destinations but also according to the comfort offered. The price of a villa can vary from less than 100 euros to a few thousand euros per night. Villas in Koh Samui and Phuket, Sydney and Byron Bay (Australia) are the most expensive (at least 300€ per night).
In Bali, for example, the average price of a villa is only 250 € per night. For those who are looking for good value for money, Chiang Mai, Hua Hin (Thailand), Goa (India) or Perth (Australia) is the place to be.
In places where occupancy rates are lower, such as Bali, Sri Lanka, Koh Samui or Phuket, you can almost always negotiate the price of your villa holiday.
The study was led by David Chambat of www.villa-finder.com whose platform offers over 1000 villas in Bali, Phuket, Koh Samui, Sri Lanka and Mauritius. It has been