Rent prices in real terms declined in March, shows study

ISTANBUL

In real terms, adjusted for inflation, average rent prices declined by 8 percent in March compared with the same month of 2023, according to a report from Istanbul-based Bahçeşehir University’s Economic and Social Research Center (BETAM).

The annual decline in rents in real terms in Istanbul was 6.6 percent, said the report. In the capital Ankara and the western province of İzmir rent prices were 6.7 percent and 7.1 percent higher, in real terms, compared with March last year.

However, on a monthly basis, rent prices increased more than the inflation rate, according to the report.

In nominal terms, rent prices advanced 4.8 percent month-on-month in March when consumer prices increased by 3.2 percent, said the report. Rents increased in March from February in the three largest cities of the country, namely Istanbul, Ankara and İzmir, the study found.

In nominal terms, rents across Türkiye increased by 55.1 percent in March from a year ago, rising to 150.4 Turkish Liras per square meter.

The annual increases in Istanbul and Ankara were 57.3 percent and 79.8 percent, respectively. In İzmir, rent prices surged 80.5 percent compared with March 2023, according to the report.

Rental price was 192.3 liras/square meter in Istanbul, while it was 139.4 liras for Ankara and 168 liras for İzmir.

The report also noted that home prices in real terms have been declining in the past 9 months.

At current prices, the annual increase was 44.8 percent in March, while the monthly rise was 2.7 percent, according to the study.

In real terms, home prices declined by 14.1 percent year-on-year across the country to 27,816 liras ($854)/square meter.