Istanbul, housing buildings

Housing rental prices rose 159%

In the last year, the rental price of housing has risen 159% in İzmir, 168% in Ankara and 146% in Istanbul.

Housing rental prices rose by 159% on average in Turkey last October, according to a recent study: a rise that coincides with a dramatic rise in inflation, which reached 84.39% in November, according to recent data published by the Turkish Statistical Institute (TÜİK).

The study, published by the Center for Economic and Social Research (BETAM) of the Bahçeşehir University in Istanbul, in collaboration with a well-known Turkish real estate website, shows that the increase in rental prices reached an average of 159% in October throughout the country compared to last year, registering an increase in the rental price per square meter to 62.2 liras/m2 (€3.16/m2).

The largest year-on-year increases in the rental price were registered in İzmir (with an increase of 158.6% in the last year), Ankara (168.4%) and Istanbul (145.6%), with the average price per rented area being 88.8 liras/m2 in Istanbul, 62.1 liras/m2 in İzmir, and 42.9 liras/m2 in Ankara.

Even so, the rise registered in October in rental prices in Turkey (159%) is less than that of September, when prices increased on average by 166.4% throughout the Eurasian country.

Impossible guarantees to be able to rent

The situation has reached such a point that some owners of rental homes are asking potential tenants to obtain a guarantee or guarantor in order to sign a contract, in many cases requiring that they must be someone who works as a civil servant, which is making it even more difficult to find a rental home at a time when prices are also skyrocketing.

According to some real estate agencies consulted in Ankara, landlords prefer public employees as guarantees because they have a regular and guaranteed salary. These types of requirements before signing a rental contract are already beginning to be seen in advertisements published on real estate platforms, and are affecting potential tenants to the point that 7 out of 10 people looking to rent an apartment in Turkey are not getting it since they are unable to find a guarantee that satisfies the owner.

The rise in the prices of housing rentals, whose causes must be sought not only in inflation but also in a greater demand as well as in the increase in the cost of construction materials, has led the Turkish government to promote projects to build up to half a million of social housing units throughout Turkey, which are experiencing a very high demand for applications.