NEWSROOM

Over the past year, house renting prices in Istanbul exceeded 50% increase, “Will rents whiteness a fall in price?” “Rental housing prices, which have increased due to the decrease in new housing production, rising housing prices and interest rates in a year, have seen their peak with the start of return to universities," said Mustafa Kemal Işık, Baghdad Street Real Estate Consultant at Remax. He continued stating “We don't expect prices to fall.  On the contrary, the trend will continue, although not at the same pace” 

*** This release is originally published in Turkish.
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ISTANBUL (TR) - Rental house prices, which increased due to the slowdown in the construction sector and rising interest rates during the pandemic, gained momentum with the return of university students to school. While the stock of rental houses is struggling to meet the growing demand, there have been surprising increases in prices, especially in Istanbul in the last 1 month. According to the research prepared by Bahçeşehir University Center for Economic and Social Research (BETAM) based on the data of the real estate marketing platform, there was a 50.7% increase in rental prices in Istanbul compared to last year. In the last 1-month period, rental prices have increased by 8.4% in August 2020, the average rent of a 100-square-meter house was around TL 2,100, while this figure increased to TL 3,100 in 1 year. Stating that the house searches of university students have been effective in the last month of mobility, Remax Result Baghdad Street Real Estate Consultant Mustafa Kemal Işık said, “After the decision of universities to start face-to-face education, students and their families started a flurry of house searches. Although student dormitories are considered to be the first alternative, the reasons such as the location of dormitories at a distance from the school and the inability to provide the expected service in terms of price and performance have turned the demand for rental housing. The health sensitivity created by the pandemic also played a decisive role in house decisions”

Foreign investor demand has increased prices

Noting that granting foreigners the right to citizenship in exchange for investing $ 250 thousand in the housing sector indirectly affects the increase in prices, Işık said, “The sale of housing to foreigners in August increased by 50.7% to 5 thousand 866 thousand compared to the same period last year. The fact that foreign investors turn to houses for sale in order to obtain citizenship increases house prices, while rental houses are also indirectly affected by this situation. In particular, there is a great demand for areas with a high standard of living with modern structures such as Kadıköy Baghdad Street, and rent increases are also at very high levels” 

The impact of irregular migration wave

Noting that the wave of irregular migration that Turkey is experiencing is also affecting the rental housing market, Işık said, “Turkey is a country that has been subjected to heavy migration at certain periods. It is estimated that more than 500 thousand Syrian migrants are currently living in Istanbul. In addition to Syrian migrants, a wave of migration is also coming from countries such as Lebanon, Iran, Iraq, Afghanistan. The need for housing for asylum seekers and migrants from these regions is changing the supply-demand balance in the market” 

The need for a reliable port

Pointing out that the rental real estate market is going through a difficult process for both home seekers and homeowners, Işık said, “Both sides need a reliable port. Those who are looking for a house and those who want to rent their house should get support from real estate consultants who can keep an equal distance from both parties and have professional qualification certificate and related certificates.