Rent in Türkiye, which was initially impacted by the exchange rate fluctuations in 2018, has further surged since the onset of the pandemic in 2020. With the elections now left behind, attention has turned to potential rent regulations.
The substantial increase in housing prices and rentals has brought landlords and tenants into direct conflict due to the overwhelming demand.
President Recep Tayyip Erdoğan, dismissing the concerns raised by doomsayers, commented earlier on these escalating real estate and rent costs, stating, "We must take necessary measures regarding rent.”
“We will not allow the greed of a few individuals to jeopardize the well-being of 85 million people. We refuse to subject them to exorbitant prices,” he said.
Consequently, all eyes are now on the anticipated steps to address the issues surrounding real estate and rent prices.
Mustafa Koçak, a civil engineer and real estate expert, shared insights into the root causes and potential solutions for the rent problem.
“To tackle the issue of rent, the foremost priority is curbing inflation,” emphasized Koçak.
Koçak addressed the necessary measures, potential solutions, and the 25% cap on rent increases.
Additionally, he stressed the urgent need for new housing, particularly social housing tailored to the middle and lower income brackets.
While some progress has been made with announced projects and initiatives, more comprehensive actions are still required, he said.
Noting that maintaining the 25% limit on rent increases is crucial to prevent further negative impacts on the market, Koçak, however, said currently, the enforcement of this limit is not widespread, leading to conflicts between landlords and tenants.
As a result, landlords, unable to evict tenants, often resort to selling their properties, leaving tenants once again as the unfortunate victims of the situation, he said.
Koçak also pointed out that housing sales to foreigners also have an effect on increasing rent for several reasons.
“There is still a prevailing idea in the market that foreigners pay higher rent,” he exemplified as one of those reasons.
“Since some property owners do not rent to foreigners, it reduces the possibility of foreigners finding a rental house. Therefore, they may have to accept the rental price, even if it is high,” he also said.
The high number of foreigners also increases the demand, thus increasing the prices, he added.
Meanwhile, housing sales in Türkiye witnessed a significant decline in April, experiencing a 35.6% drop compared to the same month the previous year. The total number of housing sales for April stood at 85,652.
The statistics reveal that the downward trend persisted in the January-April period as well, with housing sales decreasing by 18.6% when compared to the corresponding period of the previous year.
In April, a total of 2,557 houses out of 85,652 sold in Türkiye were purchased by foreigners.
However, housing sales to foreigners also experienced a significant decline of 60.3% compared to the previous year. Foreigners accounted for 3% of the total house sales in April.
