Turkey. Rental rates are not growing anymore
The Turkish authorities are taking all necessary measures to protect the citizens of their country from rising prices for rental real estate.
In Turkey, it is forbidden to increase the rent by more than 25%. This restriction is valid until July 2023. But it is currently known that it will be extended. Such an introduction makes it possible to protect the citizens of the country from a significant increase in the price of rent.
Over the past twelve months, rental prices have increased by more than one hundred percent. And to be more precise, this indicator has reached 130%. Before the restriction on rent increases came into force, landlords could increase the fee according to inflation indicators.
The introduction of the rent ceiling has caused certain problems — disputes and disagreements between tenants and landlords.
In just one month of 2023 (February-March), rental rates in Turkey increased by five percent. And on an annualized basis, the difference was 63%. The indicators are high. Limiting rent growth is a logical step to stabilize the situation in the real estate market.
The development of the economy involves, among other things, solving the issue of rising rental prices: it is supposed to get rid of this “rental inflation” in principle.
This was stated by Recep Tayyip Erdogan shortly before the second round of the presidential election, during one of his public speeches. It took place in Gaziantep, and the president then clarified the situation on housing construction in the earthquake-affected provinces (where rent payments were canceled for three months). In particular, he personally attended the ceremony of handing over the keys to the new owners of village houses.
In his speech, he also clarified that the authorities continue to solve the situation with rent: “The rise in prices caused by fluctuations in the economy is one of these problems. Especially housing prices and rents have reached really annoying levels in almost all parts of Turkey,” he stressed.
The solution was supposed to be a combination of several measures at once: rapid construction and supply of housing through the Office of Mass Housing Construction TOKI, including through preferential programs (both sale and rental of social housing); encouragement of the private sector plus strict control over excessively greedy landlords.
As of today, the situation with the elections is already clear, the votes have been counted; so we will wait to see how quickly the promise will be fulfilled.
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Lana Avetisyan
Managing Director for Business Development
+7 (977) 298-27-05
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