Investment Opportunities in AirBNB Market for Real Estate in Melbourne, Australia

Business Intelligence 1
REAL ESTATE IN MELBOURNE, AUSTRALIA
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Business Intelligence 2
A Research Report Submitted to () on Full Fulfillment of the Course in ()
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Business Intelligence 3
Abstract
Melbourne in Australia is a city that attracts many people from all over the world,
therefore, offering a good real estate investment opportunity. Majority of the real estate investors
are so much interested in getting a wide market for their lodges, apartments, and houses
(Ratcliffe, Stubbs and Keeping 2009), an opportunity that AirBNB offers. This report focuses on
analyzing the opportunities for investment in the AirBNB market. It was observed that the
platform can offer a good investment opportunity for both long-term housing and short-terming
housing.
Introduction
AirBNB is an online brokerage company that deals with renting out short-time lodging,
homes, cottages, apartments, and hotel room reservation. AirBNB does not own any real estates,
it therefore looks for people with real estates to register with it and from any client that AirBNB
brings to the real-estate owner it is a given a commission. The company has already penetrated
the Melbourne market, and it is currently charging an average of $120 per night for an apartment
and $60 per night for a private room.
Methodology
The data collection methods that were used in this study are:
 Reading online Journals.
 Conducting Surveys.
 Questionnaires

Business Intelligence 4
Findings
After conducting the study, the researcher discovered that AirBNB is a popular company
among the people of Melbourne. About 40% of the respondents noted that they have used
AirBNB at least once to rent short-time lodgings in Melbourne for their vacations. About 20% of
the respondent noted that they know about AirBNB but they have never used its services, but
they look forward to using its services. About 10% of the respondents noted that they do not like
using online platforms to book lodgings and cottages since they are worried about their privacy.
From the above statics, it is evident that the AirBNB already has a good reputation, a
strong brand, and it already has a good market share in Melbourne. The company is, therefore,
able to provide clients to its principals (Baum and Crosby 2014). Therefore, it is a worthy
marketplace for Rachel Clare to invest in since his houses will be getting sufficient clients, which
will make it possible for Rachel to cater for all the costs of maintaining the houses and still get a
good profit.
From the research, the researcher discovered that Melbourne is an attractive destination
for many Australian locals and also foreigners. This can be attributed to the cordial weather
conditions, exciting career and investment opportunities, and eye-catching white beaches
(Gordon, Canter and Webb 1998). Despite the great attractiveness of the entire Melbourne
region, there are certain suburbs which can guarantee more returns for a real estate investor.
The average amount charged per night depends on the location, number of guests, shared and/or
private facilities, and number of bedrooms as shown in the graph below.
They include: