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Study: Airbnb is driving up the cost of apartments in Berlin

Study: Airbnb is driving up the cost of apartments in Berlin

Study: Airbnb is driving up the cost of apartments in Berlin

A new study has revealed that the cost of renting an apartment in Berlin increases if there are other apartments nearby listed for long-term stays on Airbnb. The study found that the number of Airbnb apartments in a district also affected the rent price.

Competition in Berlin’s housing market

A study by the German Institute for Economic Research found that the rental cost of an apartment in Berlin increases by an average of 13 cents per square metre if there is an apartment in the vicinity listed for long-term stays on the holiday rental site Airbnb.

Researchers found that around 10.000 apartments were listed on Airbnb every month in Berlin last year, which correlates to around 0,5 percent of the city’s housing stock. “This effect is mainly due to Airbnb listings that are sublet for more than 180 days, which have thus been taken out of the regular housing market,” said the study’s co-author, Tomaso Duso.

Regional differences

The number of Airbnb properties in a particular district had an impact on rents in that area. Although it might seem paradoxical, the greater the number of Airbnb apartments in a certain district, the less impact they have on property costs. For example, the presence of an Airbnb in Mitte, Berlin’s central borough where there are lots of holiday rentals, only drove up property costs by about 8 cents. Whereas in the quieter borough of Lichtenberg, the presence of an Airbnb apartment increased costs by 46 cents.

"If a large number of Airbnb accommodations are offered in a neighbourhood, the disadvantages for residents - for example, noise at night - could mean that regular apartments are less in demand,” explained Duso. “An alternative explanation could be that the demand for apartments in the centre is so great that the Airbnb effect is no longer decisive."

Living in Berlin is expensive

Rental prices in Berlin have skyrocketed over the past decade, with the city’s booming population leading to housing shortages. However, the city government has also blamed Airbnb for exacerbating the problem and, in 2018, tightened restrictions on how much time properties could be rent short-term.

Despite this, the study’s authors believe that Airbnb can be used to efficiently manage living spaces in Berlin. "Existing space can be used more efficiently if short-term vacant apartments can be rented to third parties," Duso said.

William Nehra

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William Nehra

William studied a masters in Classics at the University of Amsterdam. He is a big fan of Ancient History and football, particularly his beloved Watford FC.

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