Back to Home
Back to Home
Turkey has been discussing the rising real estate prices for the past two years. In particular, rent increases have exacerbated disputes between landlords and tenants. The government's implementation of a 25% rent cap until July 1, 2023, has only worsened the problem instead of solving it. Several factors are behind the increase in rental prices, especially in the last year. These include insufficient housing supply, rising housing sales prices, increasing construction costs, and high demand for real estate due to its superior return on investment compared to other investment vehicles, all of which are contributing factors to the overall economic growth.
On the other hand, some tenants, unable to afford rising rents, are subletting one or two rooms in their homes for short or long periods. Landlords, too, prefer short-term rentals to avoid dealing with long-term tenants. This has led to an increase in the number of rentals made through Airbnb.
In 2018, there were 13,000 rooms available for rent through the Airbnb system in Istanbul, while in 2021 this number rose to 22,000, and by the last quarter of 2022, it had exceeded 40,000. These figures represent rentals made through the system. Including rentals made outside of the system, this number reaches 100,000. Naturally, Airbnb rentals play a significant role in the increase in rental prices. In Istanbul, Beyoğlu, Şişli, Fatih, Kadıköy, and Ataşehir are among the most preferred districts for rentals.
Today, the interest of foreigners has also contributed to the upward trend in rental prices. Since January of last year, those fleeing the Russia-Ukraine war have made numerous rental purchases in Istanbul and Antalya. Foreigners, who often make annual upfront payments for short-term, high-cost rentals, have led landlords to accept these high rental rates. Many landlords, to avoid dealing with tenants, prefer to rent their furnished properties to companies operating under Airbnb. This allows them to earn up to 50% more than the market rate. All of this has resulted in a 320% increase in rents in Istanbul and a 390% increase in Antalya over the last two years.
On the other hand, the devastating impact of the earthquake that occurred on February 6th and affected 13 million people was most evident in rental properties. Nearly 3 million citizens left their cities to start new lives in different cities. Rental prices in cities near the earthquake zone increased by almost 100% immediately after the earthquake, prompting the government to take action. Arrest warrants and hefty fines were issued against property owners who influenced prices with exorbitant increases, and against real estate agents who facilitated these transactions.
The fear of earthquake risk, which has caused a noticeable internal migration within the city, has driven many people to make panicked decisions, leading them to want to move from old buildings to new ones. Due to the intense interest in the northern parts of both sides of Istanbul, rent increases, especially in low-rise buildings and villas, have exceeded 50 percent.
The support municipalities are giving to urban transformation projects, and the fact that citizens who have given their buildings for transformation are also looking for rental properties in the same area, indicates that the rise in rental prices will continue to accelerate in the coming days. A hot summer awaits us.
Nilüfer KAS