Post-Pandemic Rise and Changing Landscape
Following the COVID-19 pandemic, short-term rentals through platforms like Airbnb have become a highly attractive model for real estate investors in Mexico and other tourist cities worldwide. However, the environment is shifting as regulations advance and competition intensifies in this segment.
Mexico City’s Concentration and Regulatory Response
Currently, Mexico City registers 26,294 Airbnb listings, with 65% being entire homes or apartments. This concentration has raised concerns among authorities and residents about housing availability and pricing for habitational use, leading to a regulation that limits maximum occupancy of listed units to 50% annually.
“Many people invested in Airbnb due to the income from short-term rentals. It was a boom, but now cities are imposing various restrictions on these platforms,” said Tony Hanna, General Director of Tiburones Inmobiliarios.
Juan Carlos Ramírez, a real estate sales consultant, explained that short-term rental platforms have reached unprecedented scales, accumulating more rooms than the hotel sector.
However, Mexico City is not an isolated case. Other cities in the Americas and Europe have tightened policies on this type of accommodation, prompting a reevaluation of the long-term investment viability of this model.
“Large cities are starting to block Airbnb, such as Medellín, Panama City’s center, New York, Paris. There have been many decisions aimed at protecting residents as rental prices have risen excessively,” Ramírez commented.
Oversupply Intensifies Competition
This context is further complicated by an exponential increase in listings within platforms, raising competition among hosts and impacting profitability.
According to AirDNA data, between 2022 and 2023, Tulum’s listings increased by 28%, while available room revenue (RevPar) dropped 14%. This scenario compels investors and developers to conduct more precise analyses before acquiring a property for tourist rental, especially in destinations where supply has grown rapidly.
Location, Design, and Operational Focus
Experts agree that a successful Airbnb now depends not only on a city’s tourist appeal but also on specific location, project design, and operational focus.
“Many developers rushed to become a big Airbnb business, but they must understand that each project needs to be highly attractive to tourists,” Ramírez stated.
He highlighted that well-planned projects can outperform market averages. For instance, a development in Playa del Carmen with over 60 apartments sustained an average occupancy of 83.6% in 2025, while the overall market rate was between 50 and 60%.
The Future of Airbnb
Ramírez believes that the Airbnb model is undergoing transformation. These spaces are no longer merely a place to sleep, moving away from the original “air bed and breakfast” concept.
In regions like the Riviera Maya, an emerging trend is “resort residences,” a format combining hotel amenities and services with the flexibility of short-term rentals.
“Having hotel-like amenities and services is crucial. This requires excellent design, operation, and management with a focus on creating an exceptional guest experience,” Ramírez explained.
He warned that a common mistake among investors is trying to blend personal and profit-oriented usage.
“Some want to live in these properties, but long-term, it’s not as pleasant with people constantly coming and going. Mixing residents with tourists is a mistake, which is why Airbnb has been restricted in so many cities,” Ramírez stated.
Thus, the future of short-term rentals points towards specialized and clearly defined projects in a more regulated and competitive environment. Although Airbnb’s appeal remains, it now requires a strategic alignment with evolving traveler expectations.
Key Questions and Answers
- What changes are happening in the short-term rental market post-pandemic? Regulations are advancing, and competition is increasing, reshaping the landscape for platforms like Airbnb.
- Why are authorities concerned about Airbnb listings in Mexico City? The high concentration of listings has raised concerns about housing availability and pricing for habitational use, leading to a 50% maximum occupancy limit.
- How has oversupply affected the short-term rental market? The exponential increase in listings within platforms has intensified competition, impacting profitability and prompting more precise investment analyses.
- What factors determine the success of an Airbnb listing? Location, project design, and operational focus have become crucial, with well-planned projects outperforming market averages.
- What trends are emerging in the future of short-term rentals? The “resort residences” trend combines hotel amenities with short-term rental flexibility, emphasizing exceptional guest experiences.
