Whatshot
Airbnb is affecting rental prices in South Africa
Airbnb is affecting rental prices in South Africa
Date: 2017-05-12
As more landlords choose to go the Airbnb route, the pool of properties available for long term rentals is shrinking. This has an effect on demand and rental charges.
Airbnb fever continues unabated as more and more people take a detour from the traditional route and rent out fully furnished rooms, houses or apartments and this, it seems, is beginning to impact those looking for permanent rentals in cities such as Cape Town where the demand for temporary accommodation from both local and foreign tourists is high.
This has had a direct effect on both rental charges and demand.
There are side-effects that we didn't foresee. Airbnb can be a threat for cities. I think it's obvious that Airbnb contributes to gentrification. It drives up real estate prices that are already soaring in Amsterdam. Neighbourhood businesses which create ties between residents are being replaced by businesses which focus only on tourists. Bike rental companies replace local grocery shops, and apartments that are continuously rented out to tourists are lost to people who actually want to live here.
No one can escape the fact that Airbnb has changed the way people holiday; it has changed where they stay and there is a very good chance that given the ongoing demand, it will change our suburbs.