As one of the highly contested topics in the realm of business, real estate continues to blossom. Its unique entrants such as vacation rentals dominate discussions. Currently, the global vacation market is at its peak, recording USD 87.09 billion as of December 2019. Experts also predict the industry will grow at a compound growth rate of 3.4% from 2020 to 2027. So, how is the vacation rental economy playing its cards with investors?
By 2027, Asia will be holding the largest market share for vacation rental real estate
For quite some time, Asian countries have been trying to outwit the USA and Europe in every aspect of the business sphere. This is evident in the vacation rental market. Researchers anticipate by 2027, Asia will be a market leader in vacation rentals after toppling the current champion, Europe.
By 2019, Europe was holding a vacation rental market share of 35.9% and at its helm were the UK and Germany. This has perhaps been attributed to the fast development of online tour operators and rising expenditure on bookings.
The surging price of natural building materials such as lumber in the USA and Europe may push Asia to the ranks quickly. Fortune states that the price of lumber in the USA has risen by 288% in recent years, which is relatively higher than in Asia. At CDA Wood, we balance our timber prices with supply to suit our customers’ needs. Visit our website for exciting deals and experts’ advice on lumber products.
Millennials prefer renting a vacation home to staying in hotels
Millennials have developed a unique taste for vacation homes in the quest for luxury. Young people enjoy their fairly low prices, private and secure spaces in the backyard for hosting parties, and online trends. In a research study done by iPropertyManagement, 12% of Millennials prefer staying in villas to hotels.
This fun-hungry generation has, in turn, catapulted the vacation rental industry to claim a market share of 47.2%. Well, this is another paragraph of good news for investors. After all, they have a ready and steadily growing market for their ventures.
Baby Boomers driven by Food & Beverage when Selecting their Lodging
What does this mean? It means that location means everything. A centrally located vacation rental to restaurants, bars, and/or wineries will gain you extra brownie points. Being able to walk short distances in safe and beautiful areas will mean more days booked. However, if you have a rental that isn’t centrally located, don’t feel that will hindered. Bringing those amenities to your rental will also result in more days booked. Think of high-quality cheeses and local bottles of wine that are stocked in the kitchen, along with a comfortable seating area overlooking your scenic hillside. Utilize the regionally local food & beverage culture because it is what can make your rental stand apart.
So, If you were thinking of joining the vacation rental industry, now is the right time to set your real estate plans in motion. Visit our website for the best wood products for interior designing and general construction to give your project a new face in the competitive arena.