Foreigners coming to the country, students returning to their universities after the pandemic measures, and the decrease in the number of new constructions have increased the rental prices. There is an increase of more than 60% in many regions in Istanbul. It is stated that houses worth ₺1000 in Avcilar find tenants for ₺2 thousand 500. Costumers complain about the exorbitant rental prices. The real estate sector, on the other hand, expects the picture to reverse within 2 years.
The new type of coronavirus epidemic, which started with urban transformation, the opening of universities, the housing demand of foreigners in Turkey, and the rent prices reaching exorbitant figures are burning the costumer’s pocket.
The increase is particularly striking in Istanbul. Nizameddin Asa, President of the Istanbul Chamber of Realtors, stated that the increase rates vary on a regional basis.
Stating that there are more than 60% increases in districts such as Kadikoy, Bostanci, Goztepe on the Anatolian Side, Asa said, “You cannot find a house that you found for ₺3 thousand 1-2 years ago, for less than ₺4-5 thousand now. 3 plus 1 houses have already gone up, prices go up to ₺7 thousand, ₺8 thousand, ₺10 thousand. On the European side, this story started in Avcilar.”
“₺1 THOUSAND HOUSE INCREASED TO ₺2 THOUSAND 500”
Asa stated that, due to urban transformation in both regions, approximately 30-50 thousand households started to look for a house all of a sudden, and because there was no potential to meet this demand in the region, this time the demand shifted to other regions and therefore the prices increased there as well.
Drawing attention to the increase in Avcilar, Asa said: “Central districts were not affected by this increase as much as those in those regions, but a ₺1000 house in Avcilar increased to ₺2 thousand 500, in Suadiye and Bostanci, the rents have increased to ₺4-5 thousand, which is valid for 2 plus 1 houses. People started to go to nearby neighborhoods this time to find a house. This time, rents increased in those districts as well. Some families and students who went to their hometown due to the epidemic began to return. A demand arose with the university results. Foreigners are coming, they have also raised the market. When it all comes together, such a picture has emerged now for several reasons.”
“WE ARE SEEING INCREASES UP TO 50-60%”
Nizameddin Asa stated that there is not as much new construction as before, and that this has an effect on the increases, adding that the increases vary from region to region, and that according to the data, the average rent increase rate in Turkey is 26%.
Stating that there are districts where increases have reached 100% on a regional basis in the last year, Asa said, “Apart from this, we see increases of up to 50-60% in new rentals. Besides, there are some landlords who want to remove the tenant and give it at a higher price, they do not have such a right.”
Stating that the rent increase cannot exceed the CPI, Asa said, “This is the upper limit. You can’t do it above it, you can do it below it. If the landlord does this (raise above the CPI) and the tenant pays by mistake, the tenant has the right to claim it back. Unless the two parties agree, the owner has no right to increase the CPI.”
“AVERAGE RENT INCREASE RATE 26%”
President of Istanbul Chamber of Realtors Asa, while referring to the rent increases in Turkey as well as in Istanbul, said, “Right now, similar events are taking place across Turkey as well as in Istanbul. Since the Turkey average is currently 26% in terms of rent increase, it means that there are regions where it increases to 50-60% regionally.”
Asa stated that the picture will be reversed with the completion of the urban transformation and new construction projects coming to the agenda, since the increases started with the urban transformation and made the following assessments:
“The construction of 50-60 thousand households, which are looking for a house at once, will be completed in 1.5-2 years due to urban transformation, they will return to their own houses. This time, empty houses will remain, there will be an increase in capacity, so these increases will last for 2 years at most. It was a fad. After that, we will not see an increase in rents in the same way. This upward trend continues until the end of the year, but at lower rates. After the end of the year, we will experience a pause, and the picture will reverse in 1.5-2 years.”
“INSPECTION AND SUPERVISION IS A MUST”
Levent Kucuk, Chairman of the Costumers’ Association (TUDER), drew attention to the high rate of rent increases and said that they received many complaints about this issue.
Emphasizing that there is an exorbitant price increase in rents, especially in some regions, Kucuk said:
“The landlords do not comply with the CPI rule, they want to increase it even more, and for various reasons they want to remove the current tenant and rent their houses with a higher rent. This is the biggest problem faced by current tenants and costumers. Everyone in the market expected that the prices would increase. Schools are opening soon, new students will come to the university, there are appointments. Landlords use these as an excuse to increase rents. There is definitely a need for supervision and surveillance here.”
Pointing out that the existing housing could not meet the needs as a result of the increase in demand for housing with the incoming immigration, Kucuk said that there was an increase stemming from this, and that when all the reasons were combined, a serious density of complaints came to them.
Providing information about the complaints, Kucuk said, “First of all, the CPI rate is never complied with, and it is said that there are increases of at least 25-30% in current rents. There are increases of up to 40-45% in new leases. Here, I would like to warn costumers to pay their current rent on time, this is important in order not to give the landlord a trump card. Citizens who are going to rent should also do a good research.”
Kucuk also warned that costumers who will make new rentals should pay attention to the fees.
Source: NTV / Translated by Irem Yildiz