Rental housing in Turkey rises in price amid lack of supply

Since July 2020, rental housing in Turkey has risen in price by about 38 percent. The ideal situation for the market was created by rising inflation, fears of an earthquake, rising prices for building materials and the coronavirus pandemic. According to statistics, over the past year, the supply of houses has decreased by almost 90 percent. The main reason is the unprecedented rise in prices for building materials. High inflation and a drop in the value of the Turkish lira, which has depreciated 45 percent against the US dollar since the start of the pandemic, have caused construction spending to quadruple. The Turkish authorities have not yet commented on the increase in rent. The Republican People's Party, Turkey's main opposition party, is demanding the government intervene in the housing market. According to local experts, in 50 districts of Istanbul, rental prices have risen by more than 50 percent in a year. At the same time, prices for the sale of real estate in Turkey rose by about 27 percent.