Real Estate

President of Istanbul Chamber of Realtors: Rent of a $10 thousand house will fall to ₺6-7 thousand

Nizameddin Asa, President of the Istanbul Chamber of Realtors, said that house rents will decrease in 2023.

Inflation, which has increased rapidly in recent months and broke the record of the last 24 years with 78.62% in June, is felt much harder due to high demand in big cities and tourism regions. This means that life in these regions becomes more expensive. One of the areas where price increases are felt the most is housing rents.

According to the data of indexa.com, which provides analysis services for the real estate sector, As of June, average rents increased by 73% in Mugla in the last year to ₺14 thousand 937, in Antalya increased by 310% to ₺10 thousand 397 and in Istanbul increased by 168% to ₺8 thousand 107.

Speaking to Senay Buyukkosdere from the Aksam Newspaper, the President of the Istanbul Chamber of Realtors Nizameddin Asa argued that the end of this dynamic process in the housing market is approaching.

Stating that the upward momentum in prices started to reverse with the decrease in demand and the start of problems in rent payments, Asa said: Who says a house worth ₺10 thousand won’t fall to ₺9? How does it not fall, of course, it does. A rent that goes from ₺3 thousand to ₺10 thousand does not fall to ₺3 thousand again, but that house goes down to ₺6-7 thousand. In fact, we experienced this between 2016-2018. At that time, rents fell by 50%, and so did sales. Look, the houses that are currently requested for 5-6 million could not find buyers for 800-900 thousand two or three years ago.

I claim that at the end of this year, both sales and rentals will begin to decline. In 2023, we will see that the houses worth ₺10 thousand will decrease to ₺6-7 thousand, the worst is ₺8 thousand. This is a very simple calculation. When we look at the tenant profile in Turkey, nobody earns ₺30-₺40 thousand.”

Source: Diken.com / Translated by Irem Yildiz

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