Sarandaliev, Ilia (2024) The relationship between short-term rental revenues and housing prices in the central parts of Sofia. Master thesis.
|
Text
23- MT-RES-S5034563-2022-2023 -Ilia Sarandaliev - Final.pdf Download (1MB) | Preview |
Abstract
This study investigates the relationship between short-term rental (STR) revenues and housing prices in Bulgaria’s capital central area. We find a positive association between short-term rental performance, measured by Revenue per Available Room (RevPAR), and housing prices. Findings from the final main model reveal that an increase of the 3-month moving average of the market RevPAR by 1% is associated with 0.169% higher housing prices in the inner city and an almost three times larger effect when excluding the pandemic's influence in 2020. We find considerable heterogeneity in the estimate across housing submarkets, characterized by the number of bedrooms, emphasizing the dominance of specific segments in the Airbnb market. More specifically, studios’ RevPAR influences the pricing of its own segment and causes a spillover effect on the housing prices of one and two-bedroom apartments. Similarly, the STR revenue performance of 1-bedroom properties is associated with heightened prices in both the studio and 2-bedroom segments. Finally, the study establishes that due to the influence of the STR revenue performance, homeowners pay a higher premium than investor buyers on housing purchases.
| Item Type: | Thesis (Master) |
|---|---|
| Degree programme: | Real Estate Studies |
| Supervisor: | Vlist, A.J. van der |
| Date Deposited: | 02 Apr 2024 13:08 |
| Last Modified: | 02 Apr 2024 13:08 |
| URI: | https://frw.studenttheses.ub.rug.nl/id/eprint/4490 |
Actions (login required)
 |
View Item |