The End of the AirBnB Era in Vienna? New Regulations to Restrict Short-Term Rentals

Vienna, April 13, 2024 (Financeflashnews) – The Austrian capital, Vienna, is set to introduce strict regulations for AirBnB and similar platforms, significantly impacting the short-term rental market. Effective from July 1, 2024, new building codes will severely restrict the operation of apartments through platforms like AirBnB.

Reasons for Regulating Short-Term Rentals

The primary objective behind this change is to protect residential zones and ensure housing affordability for local residents. In recent years, the number of short-term rentals in Vienna’s city center has skyrocketed, leading to rising property prices and making it difficult for locals to find permanent housing.

Short-Term Rentals Permitted Only with Special Permits

The new regulations stipulate that short-term rentals in Vienna will only be allowed with special permits. These permits will be granted only if strict conditions are met, including:

• Apartment Location: The apartment must not be located in residential zones or designated recreational areas.
• Financing: No housing subsidies must have been used for the construction of the apartment.
• Residential Use: The majority of apartments in the building must continue to be used for permanent housing.
• Commercial Use Limit: No more than 50% of the apartments in a building can be used for short-term accommodation.

Impact on Landlords

This poses a significant challenge for commercial landlords who have relied on AirBnB as a source of income. They will need to reevaluate their strategies and find alternative ways to utilize their properties. Options include:

• Renting Individual Apartments: Instead of renting out the entire building, landlords can focus on renting individual apartments to long-term tenants.
• Renting Premium Apartments: Considering the growing demand for luxury accommodation, landlords could shift their focus to renting premium apartments, which are not subject to rental caps.
• Investing in Other Areas: Landlords could consider investing in other areas, such as financial markets, which offer potentially higher returns.

Conclusion: The End of the Unregulated Short-Term Rental Era

Vienna’s new building codes mark the end of the era of unregulated short-term rentals. Landlords will need to adapt to the new regulations and find alternative strategies to keep their properties profitable. This change will undoubtedly impact property prices and housing affordability in Vienna.

Apartment Statistics in Vienna:

• Apartments:
  • Number of registered apartments on the AirBnB platform in Vienna: 14,100 (as of April 1, 2024)
  • Total number of apartments in Vienna: No precise data available, estimated to be between 100,000 and 150,000.
• Tourists:
  • Number of tourists in 2023: 7.8 million
  • Average length of stay: 2.3 nights
  • Busiest season: July and August
  • Largest tourist groups: Germans, Americans, Chinese, Austrians
• Revenue:
  • Total tourism revenue in 2023: €7.5 billion
  • Average daily tourist spending: €150
  • Share of short-term rentals in tourism revenue: No precise data available, estimated to be between 10-20%.

Sources:

• https://www.wien.gv.at/
• https://www.airbnb.com/