Find out the reasons for the huge increase in house rents in Turkey

House rents in Turkey are witnessing a significant increase in their rates at the general level, while the central areas of major cities have witnessed an increase of 100%, and the highest percentage of the rise in apartment rents was for Istanbul, which witnessed an increase of 300%.

What is the reason for the rise in house rents in Turkey?

The Turkish real estate market is experiencing a significant rise in house rents, particularly in major cities, and cities with universities and educational institutions.

Statistics indicate a 40% increase in rents across Turkey, and a 50% increase in rents in cities hosting large numbers of students, such as Kocaeli, Eskişehir, Erzurum, Konya, Bursa, and other cities.

The rate of increase in the central areas of major cities such as Ankara and Izmir has reached nearly 100%, while the rent of apartments in Istanbul has led the Turkish cities in increasing their prices by nearly 300% in some areas.

The crisis has grown over the past two years

Experts confirm that the rise in rents is not surprising, but rather a matter whose impact has extended from the past two years to now, and one of the main reasons that led to this rise was the increase in demand, especially after the start of lifting the restrictions imposed by the Covid-19 pandemic, coinciding with a slowdown in construction. The new Covid-19 conditions stopped some of its work.

Experts add that the immediate return of education, approved months ago, was the major turning point in these hikes.

Istanbul's regions and neighbourhoods are at the forefront

According to a report prepared by the Hepsiemlak real estate platform examining annual rent changes in Turkey, during the year of July 2021, Istanbul topped the Turkish states in terms of the rise in house rents in some of its regions.

Sariyer region ranked first among these regions, with an increase of 290% in the Rumeli Hisar neighborhood of this region, followed by Besiktas region in second place, with an increase of 238%, and Kadikoy region came in third place with an increase of 150%.

The main reasons for the increase in rents

According to news published in the Turkish newspaper Sabah, the main reasons for the rise in rents are:

1. The high demand for the purchase of residential apartments led to a rapid depletion of real estate stock, with a slowdown in the establishment of new projects due to the conditions of Covid-19, which caused an increase in demand that exceeded supply, so the rental rate increased, and as a result, house rental prices rose.
2. The Turkish Government's reconstruction plan in the old areas to immunize its buildings against earthquakes is one of the reasons for the increased demand for rent, and thus higher prices.
3. The growing demand for rent by university students, after education has returned to normal.
4. The closure of some student housing, and the reduction of the capacity of others due to the conditions of the epidemic.
5. The large number of marriages that took place this summer after giving way to the holding of weddings, which were forbidden due to the conditions of the epidemic, which led to an increase in house prices and rents.
6. The return of people who migrated from major cities after being displaced from them during the embargo imposed by the epidemic, causing a major movement in the real estate market of these cities.
7. Higher interest on housing loans led to higher apartment prices, causing homeowners to raise their home rents, which they bought at high prices.
8. The high interest rate has made some people choose renting as an alternative to buying at the moment, which has led to an increase in the demand for rent.
9. With higher prices, homeowners race to increase the value of rent above the legally prescribed value, threatening tenants to move out of the house if they do not accept the increase.
10. The administration of some of the housing complexes concluded exclusive agreements with real estate offices and granted them exclusive authorization to rent houses in the complex, which was one of the reasons for the rise in rents.

Lots of scams in the market

In the same context, Mr. Hakan Ak Dogan, President of the Association of Real Estate Consultants TÜGEM confirmed that the high rental prices, and the difficulty of finding a house for rent, constituted an opportunity for the emergence of many fraudsters in the real estate market in Turkey, and many people were subjected to fraud by these, as he stated:

"The increased demand for rent and the lack of supply, constituted an opportunity for some fraudsters to carry out fraudulent operations against those looking for a house for rent.

Ak Dogan explained how some fraud occurs when renting a house so that people can avoid these scams by saying:

The fraudsters create flimsy arguments in order to take the deposit without showing the house to the tenant, as they say: “The house is now occupied by another tenant, or the owner of the house is outside Turkey, but this house is in great demand. stealing money in this way."

Ak Dogan added, warning people of these scams: "Do not rely on the Internet alone to rent the house, but go see the house for yourself, and make sure that the owner of the house is present by looking at his taboo bonds, and if the rental is through a real estate broker, ask to see his office license or his company".

 

Edited by Imtilak Real Estate©

Reference: Sabah Newspaper.

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