Speakers
Description
The short-term rental (STR) market has undergone substantial expansion in recent decades. This expansion has been particularly marked in the case of Airbnb, which has led to a proliferation of complexities and challenges, impacting a diverse range of stakeholders, including local residents, the hotel and hospitality industry, operators of STRs, and governmental authorities. While this development has facilitated experiences that are more personalised, localised and authentic, aligning with the romantic vision of the sharing economy and evolving consumer preferences, it has concomitantly given rise to socio-economic and regulatory issues that require urgent monitoring and resolution. These socio-economic and regulatory issues include gentrification, commodification and the reduction in the affordability of housing, as well as the disturbance of local residents and their daily lives. This rising awareness of the potential adverse implications has led to the introduction of new governmental legislations. Nevertheless, the efficacy of these measures remains a subject of debate. A particular difficulty for governments and policymakers is the challenge of implementing regulation on a global level at the local level. While the rationale for regulation may be similar, the regulatory approach varies depending on contextual factors such as the local political context, housing markets and the perceived impact of STRs. The majority of extant research has not, however, addressed these subtle contextual factors in a nuanced manner. As a consequence, a number of significant mechanisms and dynamic forces that determine regulatory pathways have been overlooked. This paper seeks to address this gap by focusing on the Istanbul case.
In Turkey, the central government enacted STR regulation legislation, commonly referred to as the "Airbnb Law," in October 2023. This legislation, formally designated as Law 7464, is entitled "Law on the Rental of Residential Properties for the Purpose of Tourism and the Amendments of Certain Laws." The study will demonstrate that, while the government has succeeded in curbing the growth of the city's STR market to a certain extent through a decline in Airbnb rental listings, the increase in daily rates for Airbnb properties represents an undesirable consequence. This may lead to increased interest from the market as a result of the growth in the rent gap. It is further posited that the growth in the number of multi-hosts and the emergence of new actors in the form of companies that provide intermediary services are indicative of the ongoing professionalisation of the host structure. This transformation is believed to present a potential risk of increased real estate value and profitability. Furthermore, the privileges and flexibility permitted by legislation to certain types of buildings may give rise to conflicts with the public interest, and may also prompt commercial actors to utilise it as a marketing strategy for prospective housing and investment in STRs. While the regulatory framework for STRs in Istanbul remains in its embryonic stages, these issues give rise to the question of the extent to which the regulations are possible, effective, and, most crucially, to whom they serve the greatest interest
| Keywords | Short-term rentals, Regulation, Airbnb, Istanbul, Urban policy |
|---|---|
| Best Congress Paper Award | Yes |
