Istanbul has become the world leader in rent increases! So why are rents increasing?
NEWS CENTER - Many citizens, looking at the urban renewal projects around them, believe there's actually a surplus of housing . However, research suggests the opposite. The number of new homes being built is steadily decreasing. Turkey needs an average of 700,000 new homes each year. However, the number of homes built is far below this figure.
NO NEW HOUSING IS BEING PRODUCED
The housing shortage grows every year because new housing production is failing to meet demand. For example, compared to last year, there was a 21.3 percent decrease in the number of buildings issued with building permits in the first quarter of 2025. There was an 18.7 percent decrease in the number of apartments.
According to experts, there are multiple reasons for this. The most significant reason is rising construction costs. Declining foreign demand has also weakened housing developers' appetite.
Homeownership rate is decreasing
Rising loan interest rates, in particular, are making it difficult to launch new projects. As housing becomes more difficult to find, the balance shifts. The proportion of homeowners in Türkiye is steadily declining. Renting is on the rise, and finding a rental home is becoming more difficult.
WHY ARE RENTS INCREASING?
Compared to 10 years ago, the homeownership rate, which was 61 percent, has now fallen to 54 percent. The renting rate, which was around 20 percent, has risen to 28 percent. This is rapidly driving up rents. So much so that rent increases in Istanbul have reached 194 percent in the last five years. If housing supply doesn't increase in the coming period, we face even more difficult times.
milliyet
