Türkiye’s Rental Prices Soar Nearly 79%, Far Outpacing Inflation
Istanbul Housing
Türkiye’s housing market imbalance has pushed rental prices to record highs, climbing far beyond official inflation rates. While TÜİK reported annual consumer inflation at 33.52%, real rental price growth reached 78.94%, more than double the rate. Even after adjusting for inflation, rental yields stood at 45.4%.
Experts link the surge to a combination of summer market activity, university housing demand, limited housing supply, and the shift toward viewing rental income as an investment tool. This rapid increase is also fueling a rise in rent determination lawsuits.
Drivers Behind the Surge
TSKB Real Estate Valuation CEO Makbule Yönel Maya identified two main dynamics: sustained strong demand for rental housing alongside restricted new housing supply, and the rising importance of rental income in household budgets due to increased living costs. She predicted that while slowing inflation could gradually ease rental growth, “rental inflation is more persistent” and will decline later than general inflation.
Istanbul Chamber of Commerce Real Estate Services Committee Chair Hakan Akdoğan noted that rental demand is currently at its peak. He pointed out that the legal cap for rent increases—based on the 12-month CPI average—is 41.13%, but landlords can request market-rate adjustments from tenants who have been in place for five years or more, contributing to more lawsuits.
Market Shifts and Policy Needs
Denge Valuation Deputy GM Mehmet Ali Hartavi said property investment has shifted from capital gains to rental income focus. He stressed that supply shortages and migration trends will continue to exert upward pressure, calling for social housing projects and tenant support programs to ease the burden.
Vartur Real Estate CEO Şerif Varlı echoed these concerns, citing declining homeownership, migration pressures, and steep rent hikes in new leases after tenant evictions. He noted that demand peaks in summer due to relocations, university enrollments, and transfers, with the highest interest in properties priced between ₺20,000 and ₺35,000 per month.