Airbnb Case Study Essay

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Airbnb summons that it is not responsible for increasing the rental and housing prices in London
The problem of housing shortages exists in London. The managing director of Airbnb’s Europe, Middle East and the Africa branches, Mr. Olivier Gremillon, said that, the short term and the vacation rentals sites like Airbnb should not be blamed for the shortage of housing and the housing crunch in the capital.
Few studies have been made regarding the rise in housing capital. In which it was found that, Airbnb was not the reason for that. And there are many reasons for the increase in prices.
Mr. Gremillon said that, the company has been checking at the regional data at the regular intervals, to find out whether their business is affecting the local economics of the city. …show more content…

But for many people, still there is a desire economically and culturally to buy their own property. And it is the desire for many parents, to help their children in buying the house. They even deposit or put the mortgage in their children’s name. This has made the first time buyers to get rid of the fear of money to buy a house and they even buy the houses at the expensive prices.
• Speculation/ buy to grant
There is a tendency of the people to see housing as the good investment, despite of its volatile nature. The returns on buying a house have performed better than the stock market. This has motivated the new generation to invest in the housing and to grant it to the investors, so this has also increased the demand to the next level. There is a great demand from the Russians and Arabs in London. Some people predict that, this huge rise in prices of the houses may happen to fall. It shows that, the housing prices are high at the London market compared to the other markets especially in the north.
• Low interest

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