Economy in Turkey: Tenants in trouble! Expert warns about 2025
In Turkey, it has become nearly impossible for low- and middle-income citizens to buy a home. High property prices and rising interest rates are making homeownership a distant dream. Meanwhile, rents, especially in the three major cities, are skyrocketing, and it’s expected that rental prices will increase by at least 50% by next summer.
According to a September report by Sahibinden.com and BETAM, the prices of homes for sale increased by 20.8% in Istanbul, 22.4% in Ankara, and 26.6% in Izmir. Rıdvan Akgün, the president of the Izmir Real Estate Club, said that prices will continue to rise, and there could be increases of up to 50% in the first half of 2025.
Akgün explained:
– “One of the main reasons for the sharp increase in rent prices in Izmir is that contractors are no longer able to build housing. Many construction companies are on the verge of bankruptcy. They form consortiums, but those also fall apart due to high costs.
– With no new construction, the limited supply in the market drives prices up. Additionally, there’s the reality of refugees in Turkey, and Izmir has been significantly impacted by this. It’s a region where people can work year-round.
– In the past, it was Istanbul, but now it’s happening in Izmir. People are looking for labor, and rent prices are rising. People are desperate, facing housing issues. They’re nearly at the point where they’ll start setting up tents to find shelter.
– A 20% increase is actually quite modest. Inflationary realities are causing prices to rise continuously. Rent prices typically surge the most in June, July, August, and September. But when there’s a vacant apartment, landlords want to ask for the highest current prices.
– I believe rental prices will increase by 10-15% by the end of the year due to the supply-demand imbalance.
– Based on the inflation calculations of the Ministry of Treasury and Finance, I can say that rent prices could rise by at least 50% by the summer of 2025.”
