Work detail

The Impact of the Sharing Economy on Residential Prices in Prague

Author: Bc. Lucie Schwarzová
Year: 2019 - summer
Leaders: PhDr. Michal Hlaváček Ph.D.
Work type: Bachelors
Language: English
Pages: 62
Awards and prizes:
Abstract: This thesis employs a hedonic regression to measure the impact of Airbnb, the digital
platform for short term rentals, on residential prices in Prague. The model is based on the
unique transaction dataset of all apartment sales from the first quarter of 2014 to the
third quarter of 2018 in Prague. Also, Airbnb listings dataset is used and other datasets
containing Prague city data enabling involvement of the property specifications and
several neighborhood characteristics influencing the sale price in the model. The main
variable of interest included in the regression is Airbnb activity, proxied by the number of
Airbnb listings within 300 m of the property at the time of the sale. The results show that
a 1% increase in Airbnb activity leads to a 0.0423% increase in sale prices. Moreover, in
the city center, the estimated impact is almost twice as high, a 1% increase in Airbnb
activity leads to a 0.0816% increase in sale prices. The third hypothesis tested in this
thesis shows that the impact of Airbnb has increased in 2017 and 2018. All the estimated
results slightly vary, depending on the proxy for Airbnb activity. Nevertheless, estimates
in all regressions are statistically significant.




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