Research Outline

Property Management

Early Findings


To hep position for a successful funding round for Hostmaker, understand the short and long term rental market in London, Paris, Barcelona, Rome, and Lisbon, including market size and growth. Additionally, understand who are the main competitors/providers in both the short and long term rental markets in the EU.

Early Findings

  • Rental stock in London in January 2019 was 22% lower than January 2018. However, rents actually increased almost 5% in that same period.
  • From mid-2016 to mid-2017, the number of 30-34 year-olds living in London decreased by 9,000 while the number of 25-29 year-olds decreased by 21,000.
  • Tenants in London paid, on average, 44% of their income on rent in 2017/2018.
  • Foxton reported that there were almost 175,000 registered tenants in London in 2018.
  • By July 2017, there were 64,100 Airbnb properties listed in London, compared to 48,500 in August 2016. Fifty-two percent of these were whole houses, 47% were private rooms in a house, and 1% were shared rooms. Airbnb is the largest short term rental provider in London.
  • Airbnb had 2.1 million guests in London from July 2016 to July 2017.
  • The price per square meter for rental property in Paris rose 5.8% in 2018.
  • Rent caps in Paris were eliminated by the courts in November 2017. In the 6 months following that change, tee average rent increase was €1,530 per year.
  • Through the first half of 2018, the leasing market in Paris increased 15% year over year.

Proposed Next Steps

Although there was a great deal of data available on the lettings market in London and Paris, initial research did not uncover the size of the market in either city. However, data on the average letting price and the number of units rented may allow for a triangulation of the data. We propose the following:
  • An examination of the rental/letting market in each of the cities of interest (London, Paris, Barcelona, Rome, and Lisbon) to include any available statistics on the market such as number of units available, average rent, and growth of the market. Market size will be provided if publicly available, or estimated from available data when public data is not available. This will be one report per city. (15 hours, $435)
  • Growth of the short term letting market appears to be less available, with data focusing on specific providers (for example, Airbnb) rather than the market overall. However, we should still be able to provide relevant statistics for each location that will help with the goal of understanding the market in each location. (15 hours, $435)
  • For main providers, we propose providing the top three in the long term space and the top three in the short term space, based on revenue/growth/number of units or another similar metric. If this data is required per location, this will be one report per location, for a total of five. Alternatively, we could provide this data for the EU overall, which would be one report. (Option 1: 15 hours, $435 — 1 report per city; Option 2: 3 hours, $87 — 1 report for he EU overall)
We look forward to your response on how to proceed.