Pace of rent increase slows in Turkish cities, including Istanbul

ISTANBUL

New data suggest that the outlook in the housing market may be changing in favor of tenants and potential homebuyers as the pace of rise in rents and home prices slows down across Türkiye, including the country’s three largest cities.

In some provinces, rents reversed course and started declining, even though the drop is rather limited.

Across Türkiye, rents increased 0.8 percent in November monthly after rising 1.42 percent in September and 0.2 percent in October, according to Endeksa, which collects data on the real estate market.

The month-on-month rent increases were as high as 14 percent in February last year and started to slow from there onwards. 

In Istanbul, for the first time in three years, rents declined in October. The downward trend continued in November as rents fell by 1 percent compared with the previous month to 166.8 Turkish Liras per square meter.

“In the past months, prices had risen well above inflation,” noted Ahmet Büyükduman from Istanbul Real Estate Valuation (İGD), saying that the rent increase in the city is moderating now.

Demand declined because accessing housing became more difficult due to elevated prices and high interest on loans, he said, adding that there are other factors as well.

“There are fewer foreigners in the housing market. Also, regulations regarding short-term rentals and reserve migration in cities… All played a role, and the pace of increase in rents has slowed,” he explained.

The story is no different in the capital Ankara. In October and November, rents declined by 0.6 percent and 1.6 percent month-on-month, respectively.

İzmir, the third largest city, is experiencing a similar trend. The monthly increase in rents slowed to 1.6 percent in November from two-digit increases recorded last year.

The popular holiday destination Antalya had seen home and rent prices skyrocket due to the influx of Russians and Ukrainians who fled the war.

In Antalya too, the property market is showing signs of moderation.

Rents and home prices remained unchanged in December, said İsmail Çağlar, president of the Antalya Chamber of Real Estate Agents.

“Prices are down around 20 percent in December compared with the mid-2023.”

Çağlar cited several reasons for the decline in prices, including stricter inspections and scrutiny on real estate advertisements. “Russians and Ukrainians are returning to their countries. Prices are coming down now due to the combination of all those factors.”