Eurostat Data Reveals 125.10% Annual Rent Hike in Turkiye, Far Surpassing Other European Countries
According to Eurostat, Turkiye has recorded the highest residential rent increase in Europe, with a staggering 125.10% rise between May 2023 and May 2024, despite a 25% cap on rent hikes. Hungary followed with a 12.80% increase. The 25% cap, introduced on June 8, 2022, as a temporary measure to control rent increases, was initially set to expire on July 1, 2023, but has been extended for another year.
A real estate assessment platform, Endeksa, reported a nominal rent increase of 265% across Turkiye over the two-year period of the rent cap implementation.
Rent Cap to Expire in July
The cap is scheduled to end on July 1, 2024. Finance Minister Mehmet Simsek has indicated that there are no plans to extend the measure, suggesting that future rent increases will be based on the annual inflation rate. In May, Turkiye’s Consumer Price Index (CPI) stood at 75.45%. Simsek has announced that Turkiye is entering a period of disinflation, with a significant reduction in inflation expected by the end of the third quarter.
Housing Crisis Looms
With the anticipated end of the rent cap, there are concerns about the impact on the rental market. Real estate agent Munise Akpınar highlighted the ongoing housing crisis, noting increased tensions between landlords and tenants and a surge in eviction notices. She emphasized that the inability of citizens to purchase homes has led to a higher demand for rentals, driving rent prices even higher.
Source: Dunya.com / Prepared by Irem Yildiz