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Turkey’s Rental Market Heats Up: Why August Is the Best Time to Lease Out a Home

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Housing economist Dr. Ahmet Büyükduman says rental prices in Turkey follow a seasonal cycle — surging in spring and peaking in summer. In Istanbul, rents could reach ₺32,500 by the end of July. Meanwhile, Deutsche Bank ranks Istanbul #1 globally in rent increases over the past five years.

Rents Rise in Spring, Stabilize in Winter

According to economist Dr. Ahmet Büyükduman, Turkey’s residential rental market follows a repeatable seasonal trend. Analysis of median listing prices shows that rental rates typically rise from March through August, peak in the summer months, and plateau or decline from September through February.

In Istanbul, median rental listings held steady at ₺25,000 from August 2023 until March 2024. By May, they rose to ₺28,000, and as of mid-June, reached ₺30,000. If this pattern continues, Büyükduman projects Istanbul’s median rent could climb to ₺32,500 by late July or early August.

Capital and Coastal Cities Following Suit

The same trend applies to Turkey’s other major metropolitan areas:

  • Ankara and Izmir, which had median rental prices around ₺24,500 in May, are expected to hit ₺28,000 by August.

  • The March–August rental increase is estimated at 30% for Istanbul, 27% for Ankara, and 25% for Izmir.

This cyclical movement offers strategic insight for landlords and renters alike: “If you’re going to rent out, do it in August. If you’re renting, aim for February,” Büyükduman advises.

Is Istanbul the Global Champion of Rent Inflation?

Deutsche Bank’s newly published 2025 Global Rent Report confirms what many Turkish residents already feel: Istanbul has seen the fastest rent increases in the world over the past five years. According to the report, rents in central Istanbul surged by 193% in USD terms since 2020.

To verify the claim, Büyükduman and his team at the Istanbul Real Estate Valuation Research Unit compared it with their own housing price and rent index. Their analysis showed a 160% increase in Istanbul rents (in USD terms) over the same period — a similar trajectory.

Despite the record-breaking rise, Istanbul ranks only 53rd globally in terms of absolute rent levels, far below the most expensive cities such as:

  1. New York

  2. Singapore

  3. Boston

  4. London

  5. San Francisco

  6. Zurich

  7. Hong Kong

  8. Geneva

  9. Chicago

  10. Dubai

Inflation Down, But Real Estate Keeps Rising

While Turkey’s annual consumer inflation dropped to 35% in June, housing prices and rents are defying the trend. Home sales prices rose more than 65%, and rental prices continued climbing. This divergence underscores the growing appeal of real estate as an investment asset rather than just a basic need, according to Mehmet Ali Hartavi, Deputy General Manager at Denge Değerleme.

“The housing component in Turkey’s CPI is based on rent and user costs, whereas the House Price Index (KFE) reflects sale prices,” Hartavi noted. “Rents are rising faster than CPI captures — and haven’t fully fed into house price indices yet.”

Rent Cap, Credit Rates, and Investment Shifts

Between July 2022 and July 2024, Turkey enforced a 25% cap on rental increases, which Hartavi says helped temporarily restrain inflationary pressure in the rental market. However, as the cap lifts, there are concerns of a new wave of aggressive rent hikes.

Looking ahead, interest rate cuts could ease the burden on renters. “If mortgage rates fall, households might choose to buy instead of rent — reducing rental demand and stabilizing prices,” Hartavi explained. He also pointed to growing institutional interest in real estate investment vehicles like REITs and Portfolio Management Companies, which further fuels housing as an asset class.

Housing Now an Economic Driver

In closing, Hartavi emphasized the structural role of housing in Turkey’s macroeconomic outlook. “Rents are no longer a background item. They’re shaping inflation, affecting household budgets, and redefining property as a store of value. Housing is now both an economic asset and a driver of inequality.”

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