Platform-mediated short-term rentals and gentrification in Madrid

Abstract

This chapter provides empirical evidence of a new ‘transnational gentrification’, neighbourhood upgrading that correlates with the rapid increase since 2013 in platform-mediated, short-term rental supply and rising rental costs. ‘Classical gentrification’ can be understood as a substitution of the resident population in some areas of cities by higher-income classes following periods of social and economic decline. Digital platforms facilitate increased spatial mobility and, as these emerged after 2012 – especially Airbnb – Madrid’s value as a tourist hub drastically shifted the real estate market. The transnational character of real estate speculation and demand in Madrid leads to a new type of gentrification that has not yet been accounted for. The chapter examines these changes through the lens of the academic contributions regarding the mutation of gentrification processes. The flexibilisation of the real estate market made possible by short-term rental platforms has intensified the commodification of housing in and beyond the city centre, rather than enhancing its use value through sharing.