The Short-Term Rentals and Gentrification: The Case of Beyoğlu, Istanbul

Short-term rentals (STRs), particularly those offered via Airbnb, channel considerable capital into select neighborhoods, often those near city centers or in culturally vibrant districts. This study investigates Airbnb’s impact on the gentrification processes in Beyoğlu—one of Istanbul’s most internationally recognized historic areas. It highlights the additional layer that STRs contribute to ongoing urban transformation in neighborhoods already experiencing gentrification. This study used a mixed-method approach. While quantitative data on Airbnb listings in Beyoğlu was obtained from Inside Airbnb, qualitative data was collected through semi-structured interviews with key stakeholders. The findings indicate that Airbnb intensifies gentrification dynamics by driving up property values and precipitating the “Airbnbification” of housing, a phenomenon most pronounced in Galata. This trend threatens to reduce long-term rental options and push local residents out of their traditional neighborhoods. In an environment where regulations are absent or not effectively enforced, Airbnb and comparable STR platforms act as catalysts for urban change, reshaping the housing market beyond its conventional parameters. The case of Beyoğlu underscores the need for comprehensive policy interventions that address housing affordability, historical preservation, and the social fabric of gentrifying districts. By highlighting how STRs exacerbate existing inequalities, this research provides a basis for further debate on the regulatory measures required to safeguard the social and cultural integrity of historic urban areas.