University Enrollment Triggers Rental Surge in Istanbul: Campus Effect Pushes Rents Up by 41%

The start of university registrations in Istanbul has sent shockwaves through the city’s rental housing market. While average rent increases across the city stood at 6.5%, neighborhoods located near campuses saw prices climb as high as 41% compared to surrounding districts.

This so-called “campus effect” is distorting rental prices not only between districts but also within the same neighborhood, highlighting how concentrated student demand reshapes local markets.

Where the Campus Effect Is Strongest

According to data from GABORAS Real Estate Platform, the most striking example of this phenomenon is in Çekmeköy, home to several private universities. In this district, the rent gap between campus-adjacent neighborhoods and the wider district average reached 41%.

Other areas also recorded sharp differences:

• Fatih, home to several campuses of Istanbul University, saw a 30% rental gap.

• Şişli, another district with major universities, reported a 32% gap.

• By contrast, in districts with fewer campuses, such as Eyüp, the difference was limited to 10%, and in Bayrampaşa, just 2.6%.

These figures demonstrate how higher education continues to drive localized real estate inflation in Turkey’s largest city.

The Most Expensive Districts: Kadıköy, Sarıyer, Beşiktaş

While the “campus effect” explains sharp differences within districts, broader rental averages paint another picture of inequality in Istanbul’s housing market.

According to Dünya Gazetesi, the highest average rents are concentrated in already popular and central districts:

• Kadıköy tops the list at 56,000 TL per month.

• Sarıyer follows at 54,000 TL.

• Beşiktaş and Zeytinburnu both average 51,000 TL.

Experts note that while rents in these areas may have reached saturation levels, upward momentum has not stopped, fueled by demand from both students and professionals seeking central locations.

The Lowest Rents: Esenyurt, Arnavutköy, Bağcılar

At the other end of the spectrum, the lowest average rents are found in Esenyurt, where monthly rent averages 16,000 TL. This district is followed by:

• Arnavutköy, averaging 18,000 TL,

• Bağcılar, averaging 20,000 TL.

These outer districts remain more affordable, but they are less attractive for students due to weaker transportation links and limited social amenities.

Why Students Drive Rent Differentials

Housing experts emphasize that students weigh more than just proximity to campus when choosing where to live. Transportation accessibility, metro connections, and social opportunities are just as important.

This dynamic means that central districts integrated into Istanbul’s transportation network continue to see the sharpest rent increases, as both students and professionals compete for the same limited housing supply.

Broader Context: A Tight Rental Market

The surge in student-driven demand comes on top of already high pressure in Turkey’s real estate market. Double-digit inflation, rising construction costs, and supply shortages have pushed rents upward for years.

Analysts warn that the “campus effect” is likely to worsen affordability issues, especially for middle- and low-income families competing for housing in the same areas as students. The fact that rental growth near campuses significantly outpaces district averages underscores the structural challenges facing Istanbul’s housing market.

Conclusion: An Unequal Housing Map

The latest data show that Istanbul’s housing market is increasingly fragmented:

• Students drive intense rental spikes around campuses, sometimes exceeding 40%.

• Popular central districts remain prohibitively expensive, with rents above 50,000 TL.

• Peripheral districts like Esenyurt and Arnavutköy provide cheaper alternatives but often lack the convenience and amenities that students and young professionals seek.

As universities reopen and enrollment numbers grow, the tension between student demand, limited supply, and broader economic pressures will continue to define the future of Istanbul’s housing market. For now, the campus effect remains one of the clearest examples of how education and real estate intersect in Turkey’s largest city.