Invest In Airbnb Property, Or Why Developers Prefer To Build Short-Term Rentals And Not Hotels

Understanding what to invest in can be key in any type of investment, but especially in real estate. While stocks and forex typically have higher liquidity, buying real estate for investment purposes is usually for the long-term or mid-term. 

Today, more and more players are choosing to invest in Airbnb property, that is, apartments 100% adapted to compete in the best short-term rental markets. We address this trend around the world, and especially in Panama.

Why Do More People Buy Airbnb Property, Or the Trendiest Accommodation Wave

When the luxury hotel industry was born in pioneering cities like Paris or Boston and when they were turned into truly extravagant pieces of architecture, like later in Las Vegas, little could we see an end to this trend.

Markets change, and the new tendencies usually bring something back from previous periods. Today, people may prefer to invest in Airbnb property, while in 20 years, developing companies may become interested in those opulent hotel complexes again.

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Right now, reports indicate that the short-term rental industry has been deeply accelerated since 2023, after COVID-19. Short-term vacation houses or apartments would allow an individual or family to keep themselves safe from external contact while still enjoying a vacation, a getaway, or an international conference.

Developers Cater To Those Who Want To Buy Airbnb Property

From 2023, the numbers have increased spectacularly. In 2011, there were approximately 27,000 units, and in 2030, they're expected to be 162,000. It seems that developers are putting real effort into positioning themselves in the best short-term rental markets by building developments that stand out from the competition.

What’s Trendy: Buy Airbnb Property In A Hotel-Branded Residency

This has created the perfect space for a tendency that's not new, but that surely has momentum: branded residences. They go way back, specifically to 1927, when the Sherry Netherland Hotel inaugurated a building with private apartments for sale in New York City. 

In our times, it is only natural that luxury hotel brands are focusing on developing short-term apartment complexes more than they are on building new hotels.

Branded residential spaces offer the best of two worlds. It is, in summary, like living in a hotel. You are in your own apartment or studio, yet seamlessly integrated into an ecosystem of facilities that have wellbeing, lifestyle, and entertainment at their core. 

From very unique features like a movie theater, an observatory on the rooftop, to the standard amenities and services like valet parking, an Infinity pool, a gym, and a children’s playground, they offer something for every taste. 

Thus, some of the major hospitality brands build these types of residencies instead. Residents access hotel resort-style living 365 days a year, and guests have more intimate accommodation experiences. They can dwell in their own units with their loved ones, resting assured that they are serviced by the same brands that have proven consistency and quality in the hospitality sector for decades. 

The Best Short-Term Rental Markets For Branded Residences

Now, where can we find these developments? In Panama, for example, there's a project located in an exceptional area called Panama Pacifico. The building will be erected near the coast, near hotels, close to the Panama Pacifico free zone, and with fast access to the city center. 

Regarding the area, it is undergoing major urban infrastructure enhancements that will facilitate connections and boost growth in general. 

What's Going On In Other Jurisdictions

Who leads the branded residency growth in 2025? It’s not Paris, it’s not New York, and it’s certainly not Las Vegas. We find the main drivers in the Middle East, in places like Dubai and Saudi Arabia. These regions offer unmatched quality combined with splendor and with their pipeline level developments ahead of the live projects.

It is also interesting to understand that when they buy Airbnb property, people look for more than luxury. Wellness has become an essential aspect that focuses on health and longevity, as well as a sense of community, unique layouts, and gastronomy.

Why Buy Airbnb Property Now In Panama

Short-term rental investment is profitable, especially if it's in a branded residency. If you buy a unit in such a project, you will have the brand name to your advantage because renters will recognize it as a symbol of reliability, quality, and style.

Today, most of the projects come with rental management services that take care of all the administrative burden while you just let your investment work for you.

In an environment like Panama, visited by tourists, business people, and temporary residents, it might be a good idea to invest in Airbnb property supported by one of the largest and most famous hospitality brands in the world.

Disclaimer: the information published in this article may not be 100% accurate or may be outdated at the time of reading. Before making any investments, always conduct market research, analyze risks and benefits, and consult with certified advisors. This article doesn’t constitute financial or legal advice. 

Buy Airbnb Property And Enter One Of The Best Short-Term Rental Markets 

Mundo can help you buy a unit or several units in this project. Through us, you can also buy Airbnb property in neighborhoods like Amador, Calle Uruguay, Punta Pacifica, and Playa Bonita, but this is the only branded one, supported by a worldwide-recognized player. 

Contact us, and we'll provide more information about the units, the location, the perspectives, and the amenities. The Mundo team will gladly help you in your process towards purchasing your property in Panama City.

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