Short-term rental demand flies around the world

Demand for short-term rental property is lifting off around the world, as companies increasingly send employees on short-term assignments.

Knight Frank's latest Global Cities report forecasts that short-term assigments will grow to over a fifth of all international relocations in the coming three years, while long-term assignments are expected to fall by seven percentage points over the same period.

"Major cities that embrace the short-term rental model are in line to reap the economic benefits," says Knight Frank, although supply is struggling to meet demand in some established markets.

The news is positive for landlords looking to capitalise on this growing sector of businesstravel, though,. The number of serviced apartments has grown by 80 per cent since 2008 to over 750,000, notes the report, with the US and Europe accounting for 61 per cent and 17 per cent of the units respectively.

The rise of online services such as Airbnb, meanwhile, have helped to encourage the popularity of short-term rentals, thanks to their ease and speed for both visitors and those seeking income. Hospitality companies are now targeting corporate travellers, which currently make up 10 per cent of stays, as an area of growth.