Annual increase in rent prices slows in May: Survey

ISTANBUL

The pace of growth in the annual increase in rental house prices has slowed from 117 percent to 101 percent across Türkiye, according to a study by Istanbul-based Bahçeşehir University’s Economic and Social Research Center (BETAM).

The report noted that annual increases in rents were sharp in April and May last year, the slower growth in rent prices in May could be attributed to the base-effect, the report noted.

Rent prices increased by 7.7 percent last month from April, whereas the increase in the same period of last year was 16.2 percent, the authors of the report said.

The rent price, which was 56.3 Turkish Liras/square meter on average last year, climbed to 113.2 liras this year, they said.

The annual increase in rent prices in Istanbul slowed from 117.4 percent in April to 109.4 percent in May, while the year-on-year increase in İzmir, the country’s third largest city, eased from 160.9 percent to 150 percent. In Ankara, the annual increase was flat from April to May.

In Istanbul, the price of a rental house was 140 liras/square meter in May, in İzmir and Ankara it was 93.7 liras and 112.5 liras, respectively.

The inflation-adjusted real increase in rent prices was 44 percent year-on-year.

The report also said that demand for rental housing grew by 3.8 percent last month compared with a year ago, while more rental houses were offered in the market. The number of classified ads placed by landlords increased by 9 percent across the country in May from April, according to the report.

The government recently extended the 25 percent cap on rent hikes for another year until July 2024. The measure was introduced last year as millions of tenants were struggling to cope with sharp increases in rent prices in an environment of elevated inflation.