Did Airbnb Affect The Rental Market In Beirut?

1st September 2018
Home > News > Did Airbnb Affect The Rental Market In Beirut?

The rise of Airbnb listings in Beirut in the past few years is undeniable. But did this rise affect the real estate rental market? and did it impact the local real estate brokers?

With a few button clicks on a smartphone or a laptop, you can book a reasonably priced, centrally located private apartment or a room within an apartment in Beirut. Airbnb is probably making travel easier all over the world not only in Beirut, but is it affecting the rental market of Beirut? One can safely argues that Airbnb main service is short rental and it is directed mostly to travelers and hence it is in direct competition to hotels and motels rather than real estate rental market; but come to think of it, every apartment listed on Airbnb is usually off the long-term normal rental market. By taking supply off the market, Airbnb could potentially raise prices. But is this the real situation?

Talking to many home owners who are using the Airbnb platform to help rent their apartment, the common explanation goes as follow: “ we always prefer long-term rental to a series of short-term rentals across the year that requires more management including services such as cleaning and constant wifi that is not usually required for long-term rentals. However, Beirut has witnessed a big supply of apartments available for rent in the past decade following the real estate market rise in early 2000’s and hence owners are finding Airbnb an option to rent their apartments for short-term. We believe that the target audience of Airbnb clients and long-term rentals are totally different and the supply market of apartments for rent in Beirut remains reasonably high that no real impact can be measured”.

On a related note, one real-estate agent we interviewed argues that many real estate investors are seeking to purchase apartments that fits Airbnb profile to benefit from the platform ability to improve their ROI; Hence can this impact positively the real estate Sale market rather than hurt the real estate long-term rental market?

Both equations remain equally difficult to measure and tracking such impacts on real estate market may be insignificant!

Share this article
  • icon
  • icon

Related News Articles

Why Buy A Chalet At Le Sommet – Laklouk?

Living on a mountain in a nerve-soothing and peaceful space is your every Lebanese dream.Mountain life can offer you a great escape from the hustle bustle of city life and everyday stress. Having a homey chalet on a naturally preserved mountain top can achieve your dream getaway and revive your connection with nature.Recent studies have shown that living at high altitudes even...

1st May 2019
Top 5 Reasons Why Real Estate is a good Investment in Lebanon in 2023

Real Estate has always been a safe and sound investment.This article will explore why it is a really good idea to invest in Lebanon nowadays. 5 Reasons why Real Estate is a good investment in Lebanon nowadays:1. Worldwide inflationWe are all aware of the worldwide inflation rocketing in the past year with no clear vision in the near future on how to contain it. What does this m...

10th May 2023
JSK Christmas Gathering 2022

On Thursday, December 23th, 2022, the whole team gathered in Sama Beirut headquarters and celebrated Christmas.The Christmas tree has been set up in the office for those who come in, and the smell of wine is floating in the air. More than ever before, JSK Agents and admins needed this event to bring their people together and heighten their spirits, despite a fast-changing and c...

23rd December 2022
What Are Buyer Vs. Seller Agent Roles & Responsibilities?

Are you familiar with the term “Buyer Agent”? What about “Seller Agent”? What do those 2 terms mean?A buyer agent is typically the agent that handles the buyer. The seller agent is the agent that handles the seller.You would like to buy an apartment? You contact a real estate agency and you are typically transferred to an agent. The buyer agent role can be summarized as follow:...

1st October 2018