Durban tops Airbnb’s rental money-spinner, index shows
Nested global index compares how long it takes to make back the value of a property using homestay network Airbnb compared with traditional rental market
People can pay off houses more quickly in SA using Airbnb than they can in any other country, according to a new global index.
Durban topped the new 2017 Property ROI Index, created by London-based online estate agent Nested.
The index compares how long it takes to make back the value of a property using Airbnb as a service compared with the traditional rental market.
Airbnb is an online marketplace and homestay network. It lets people list or rent short-term lodging in residential properties, while the owner of the accommodation sets the rent cost. Founded in August 2008 and based in San Francisco, California, it operates in about 191 countries.
"Aside from offering a guaranteed sale within three months, our goal at Nested is to help people get the most value from their homes. We created the 2017 Property ROI Index to better understand global variations in real estate prices from an investment perspective," Nested says on their web site.
"For 75 international cities, we researched thousands of properties sold in the last 12 months or currently on the market to find the average price of a three-bedroom property. For each market, we calculated exactly how long itwould take you, in months, to recoup the property value based on average rental and Airbnb costs," it said.
The research showed a property in Durban would take 167 months to recuperate value via traditional rental methods, and 18 months via Airbnb, which was the shortest time period worldwide.
In second place was Lagos, third was Cairo, fourth is Reykjavik and fifth was Johannesburg, which would take 180 months via traditional means and 33 months via Airbnb. Cape Town placed twelfth, after the likes of Santiago, Athens, Bangalore, Dubai, Bucharest and Medellin. It would take 205 months to recuperate the value of an average house in Cape Town using old school rental methods or 55 months using Airbnb.
This compares to Lagos, Nigeria, where it takes the least amount of time to recuperate property value via traditional renting at 132 months, and Taipei, Taiwan, where it takes the longest, at 693 months.
Properties in Beijing, China, take the most amount of time to recuperate their value via Airbnb rental, at 714 months on average.
Nested used closed property sales in the past 6 months and current market listings for all locations researched. Data were also sourced from the World Bank, HSBC and the Economist magazine’s research arm.