Tel Aviv, Jerusalem among 10 most expensive Airbnb cities

Tel Aviv and Dubai were in fourth and fifth place on the index, respectively, and Jerusalem, Riyadh and Kuwait City were also high up on the list.

By GLOBES
July 25, 2018 09:48
2 minute read.
Vacation

Illlustrative photo of a man relaxing on vacation. (photo credit: INGIMAGE)

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analysis from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later

(TNS) - The prices of pleasures such as getting suntanned in Tel Aviv and wandering in the famous Dubai shopping malls have recently risen. The high costs of hotels and vacation apartments and the tourism boom have sent Airbnb prices skyrocketing in several Middle Eastern cities to levels among the highest in the world.

The Middle East on an upward trend

The recent Bloomberg index put Miami and Boston at the top of the list of expensive places in the world in terms of daily cost for private residences for the second straight year. People renting out apartments through Airbnb demanded $205 and $194 per night in these two cities, respectively. The Middle East, however, rose in the ranks in 2018, with five Middle East cities among the 15 most expensive cities in the world. Tel Aviv and Dubai were in fourth and fifth place on the index, respectively, and Jerusalem, Riyadh and Kuwait City were also high up on the list.

High costs

The high Airbnb rates in Israel are a result of the high cost of housing in Tel Aviv and Jerusalem. Dr. Yoav Kerner, a lecturer in statistics at Ben Gurion University who researched the Airbnb market in Tel Aviv for the Israel Hotel Association, says that rents for apartments in Tel Aviv are usually equal to three quarters of the average gross monthly salary.

Kerner explains that since people renting out apartments through Airbnb want more rent than they would get by renting out their apartments for an entire year, short-term rents are going up. He estimates that Airbnb has added 10% to rents in Tel Aviv.

Several cities around the world, including New York, have imposed restrictions on the short-term rental market out of concern that it will increase rent costs. Airbnb public affairs director Nick Papas rejects this argument, attributing it to hotel owners. "It is no surprise that the hotel industry is paying for misleading reports about our community," Papas wrote in an email. "The figures prove that these claims are unfounded."

According to figures from Airbnb, the average rate is $87 a night in Tel Aviv and $82 a night in Jerusalem, much lower than the $188 a night and $173 a night found by Bloomberg. Airbnb uses a calculation method that is different from Bloomberg's; Airbnb takes into account the rates for the units actually rented, while Bloomberg uses the prices appearing in advertisements.

The Bloomberg index uses advertisements in over 120 cities worldwide. The highest short-term rents were at small vacation destinations according to AirDNA, which provides short-term rental data. For units rented out for at least 30 days a year in cities in which at least 1,000 units were offered for rent, the highest rent was $1,127 in the Caribbean island of St. Barthelemy, followed by the ski resort of Vail, Colorado with $668.

———

©2018 the Globes (Tel Aviv, Israel)

Visit the Globes (Tel Aviv, Israel) at www.globes.co.il/serveen/globes/nodeview.asp?fid=942

Distributed by Tribune Content Agency, LLC.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

FROM LEFT: Michael Siegal, Jewish Agency chairman of the board; Owen Egre, 10,000th Onward Israel pa
June 26, 2019
Surge in Diaspora young professionals in Israeli programs

By ALAN ROSENBAUM

Cookie Settings