Airbnbfication and gentrification from the perspective of rent gap theory: the case of Beyoğlu, Istanbul

This paper examines how Airbnbification affects the rental market in Istanbul's historic Beyoğlu district using rent gap theory. Given Turkey's recent soaring inflation rates, special emphasis is placed on inflation, aligning with Neil Smith's focus on its impact on rent gap formation. Beyoğlu's history and urban development in the context of neoliberalisation of Istanbul are considered, highlighting why it alone hosts 15.36% of Turkey's Airbnb listings. The analysis proceeds in four stages: first, by comparing long-term rental incomes with Airbnb revenues; second, by assessing inflation and rental growth rates; third, using Pearson correlation to analyse inflation and Airbnbification; and finally, employing the Vector Error Correction Model (VECM) to explore both short- and long-term relationships and Granger causality. These findings suggest Airbnb listings, rising rents, and inflation contribute to the ongoing rent gap, positioning Airbnbification as the latest phase of Beyoğlu's gentrification.