The impact of Airbnb on the Italian real estate market: a focus on the city of Turin.

This work focuses on the city of Turin to investigate the impact of Airbnb on the local real estate market. After an introduction on the sharing economy, the focus shifts to Airbnb, covering aspects such as its business model, the relationship with the hotel industry, and the regulatory issues associated with its rise in the major cities across the world. The following section concentrates on the Italian real estate market as a whole, with considerations based on data regarding both homeownership habits and market trends in terms of homeownership, the number of transactions, and prices. Once the most relevant literature regarding the relationship between Airbnb and real estate markets has been reviewed, the third chapter illustrates the data used in this work, provided by: AirDNA for listings’ data, Idealista and OMI for real estate figures. Key statistics and findings are then illustrated and described. What follows is the econometric analysis, which is divided into three categories of regressions, grouped by the dependent variable specified in the model: revenues per listing, neighbourhood rent prices, and neighbourhood sale prices. Therefore, the first group of regressions looks at the characteristics influencing the profitability of a listing, while the last two groups aim at investigating the impact on the real estate market. The final chapter is dedicated to a summary of the main findings and conclusions.